Hudson Companies and BRP Companies announced closing on $343 million in financing for the second phase of La Central, delivering an Extremely Low & Low-Income Affordability (ELLA) housing development to address inequality in the South Bronx.
Funding for Phase II comes from a range of public and private financing sources, including tax-exempt bonds from the New York City Housing Development Corporation (HDC), a subsidy from New York City Housing Preservation & Development (HPD), Low Income Housing Tax Credits, Brownfield Tax Credits and NYSERDA grants. Red Stone Equity partners is the tax credit syndicator and Chase is providing credit enhancement.
“With the closing of Phase II of La Central, we’re making meaningful progress towards addressing the critical need for affordable and supportive housing in the South Bronx and the wider City,” said Marlee Busching-Truscott, Managing Director of Development of the Hudson Companies. “First envisioned over a decade ago, this milestone marks a significant step in advancing our goal of providing quality, sustainable housing for all New Yorkers. We’re proud to deliver on our commitment to the community, which would not be possible without the support of our financing partners at HPD and HDC and our team of co-developers.”
“Amid a deepening citywide housing shortage, Phase II of La Central represents a pivotal advancement toward the creation of over 1,000 critically needed residential units in the South Bronx,” said Andy Cohen, Managing Director, Development for BRP Companies. “This strategic investment plays an integral role in expanding equitable housing access at scale, while reaffirming our commitment to sustainable, inclusive, and community-driven development that delivers a lasting impact to the communities we serve.”
“Today’s closing of La Central Phase II marks a major milestone for the Bronx — completing a development that adds 420 new affordable homes and creates more than 1,000 opportunities for New Yorkers to live in deeply affordable, stable housing,” said Acting HPD Commissioner Ahmed Tigani. “The South Bronx has faced its share of challenges, but today it shows what can be accomplished when we invest in the strength of this community. Thanks to our partners Hudson Companies, BRP Companies, Breaking Ground, and Comunilife, we’re proud to keep building a stronger Bronx together.”
“We are pleased to embark on the final phase of the La Central development, and in doing so, fulfill our promise to the South Bronx community,” said Jerome Kretchmer and Larry Hirschfield, principals of ELH-TKC, LLC. “This moment has been over a decade in the making. By delivering environmentally and socially responsible housing for extremely low- and low-income New Yorkers complete with world-class amenities and social services, Phase II of La Central will play a critical role in combatting the city’s ongoing housing crisis and ensuring our neighborhoods remain open to people of all income levels.”
“As a member of the original Bronxchester, now La Central, development team, I am thrilled to announce that after twelve years, we have successfully secured financing for the last two buildings of this visionary project. The completion of the first three buildings has significantly transformed the Melrose neighborhood of the Bronx, including the establishment of a new YMCA. With the addition of the final two buildings, we will provide more than 1,000 units of affordable and supportive housing across five buildings. Each partner involved in this project has played a crucial role in bringing La Central to fruition, and this achievement would not have been possible without everyone’s unwavering dedication over the years, especially during the challenges of the COVID pandemic. We are proud to serve as co-developer and social service provider for the La Central Residence, as well as the non-profit sponsor for buildings A and B, and now as a partial equity owner of buildings C and E,” said Blanca Ramirez, President and CEO of Comunilife.
The second phase of La Central will feature two residential buildings — Building C and Building E. Building C will offer 166 apartments and will be constructed to meet Passive House standards, operating entirely on electricity to eliminate carbon emissions. The Development team was the recipient of a NYSERDA Buildings of Excellence award for its energy efficient design of Building C. Building E will provide 254 apartments and will be built to achieve LEED Gold certification, reinforcing La Central’s commitment to energy efficiency and the use of renewable energy. Both buildings will provide studio, one-, two-, three- and four-bedroom apartments between 30-80% of the Area Median Income (AMI). In addition, 63 supportive housing apartments will be designated for formerly homeless individuals and their families through NYC’s 15/15 program, with Breaking Ground as the social services provider.
In addition to housing, Phase II’s buildings will include approximately 1,567 gross square feet of commercial space, 13,000 gross square feet of community facility space, and 7,134 square feet of public garden space. Building E will include a telescope remotely controlled by Bronx High School of Science on the rooftop. A large central courtyard surrounded by the La Central apartment buildings will also be completed in this phase.
Phase II will finish construction in 2028 and complete the La Central development, comprising five distinct buildings with approximately 1,000 affordable housing apartments. La Central Buildings A and B, which opened in 2021, are fully affordable, mixed-income, mixed-use developments with nearly 500 apartments. Building A is also home to a state-of-the-art YMCA. Building D, completed in 2019, provides 160 supportive and low-income apartments. La Central participates in the NYSERDA Multifamily Performance Program and LEED for Homes.
