New Rochelle Housing Authority sponsors rental-unit project
The New Rochelle Municipal Housing Authority (NRMHA) may be moving in a new direction when it comes to providing shelter for local residents.
The non-profit company is sponsoring the Development of a 130-unit rental housing project, which will offer rents slightly below market rates. “Up to this point, the housing authority solely managed and administered public housing,” said Steven Horton, executive director. “Changes in federal regulations removed many of the restrictions on the type of activities in which we can become involved.”
Currently, the NRMHA manages nine buildings, consisting of 543 housing units. In addition, it manages 161 units of the Section 8 housing program, which provides housing subsidies for qualified families.
Horton said the new $16 million rental project will involve a 10-story apartment building on May Street between Lockwood and Sickles avenues. Rents for the 80 one-bedroom, and 50 two-bedroom units will range from $790 to $1,050 per month. The area is currently zoned for multi-family and senior housing.
The NRMHA has formed the Queen City Development Corp., which will sponsor the project, and has assembled a development team of the Sheldrake Organization of Hempstead Village and Newman and Novak of Melville.
Sheldrake, a real estate management company, will provide technical assistance for the project, including structuring of the financing. Sheldrake has completed 10 large-scale projects in the past three years, including a 115-unit rental housing complex in Hempstead.
Newman and Novak, an architectural firm specializing in multi-family and commercial developments, has designed the $13 million Regatta Condominiums in Mamaroneck, According to Horton, the project will be financed through tax credits and tax-exempt bonds issued by the NRMHA. “The project costs will include land acquisition, demolition of the existing structures and actual construction,” he said.
Currently, the NRMHA has a purchase option agreement for the .75-acre land which includes a small office building and a distressed two-story house. “We’ll be conducting environmental impact studies during the next nine months and expect to start construction by the end of this year,” he said.
Horton said the apartments will be marketed to middle-income individuals and families, as well as retirees. “Basically, it’s designed for the working people of New Rochelle,” he said. “Many of the southern Westchester communities have a very tight rental market and research shows a demand for quality rental housing in this price range with an annual operating budget of $1.9 million, the NRMHA plans to become more involved in developing moderate-income housing projects. This is our foray into the private real estate market,” said Horton.
Copyright Westfair Communications Jan 26, 1998
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