Developer:Columbia Hicks LLC and related entities

Partners:New York City Department of Housing Preservation and DevelopmentNew York City Housing Development CorporationNew York State Homes and Community Renewal

Total Number of Units: 137 (95 rental) Workforce: 49 Market (160% AMI): 46

Occupancy Rate of Workforce Units:100%

Project Affordability:Two income tranches: 39 WFH units at 80% AMI; 10 units at 130% AMIRental Price: $873/month - $2,190/month

Area Median Income:Household of four - $79,200

Long Term Affordability:35-year commitment on workforce units

Development Costs:$51,000,000 Development Timeline:Date Site Acquired: September, 2008Date Construction Started: November, 2008Date Sales/Rentals Opened: May, 2011Date Construction Completed: December, 2010

Sustainability:TOD location, high energy efficiency and water efficiency equipment/appliances

Regulatory Reform:Rezoning and a city surplus sales

Columbia Commons/Columbia Hicks Apartment - Brooklyn, New York

Website: www.columbiacommonsbk.com

Located in Brooklyn’s revitalized and now costly Cobble Hill neighborhood, Columbia Commons and Columbia Hicks Apartment is a unique project that has both sales and rentals for a variety of incomes within one six-story building. The building occupies a large footprint within a city block resulting in three entrances and two names: Columbia Commons (for sale units) and Columbia Hicks Apartments (for rent units). The project combines an unusual mix of condominiums and rentals that cover a full spectrum of pricing. Its tenants range from families at 80% AMI to families paying market rate for the apartments. Rental units that are not workforce units are capped at rates affordable at 160% AMI, which in areas such as Cobble Hill are below comparable market rents.

Because of the unique nature of the building, the developer set up separate entities to manage the development of the sale and rental units in the project. Lenders required a total of six condominium entities be created to prevent the commingling of funds. This regime needed to be put in place prior to construction, a first for New York City at the time but now common for city projects with complex financing.

The site, formerly 50% private land and 50% public land, was rezoned for residential use and the public land was sold to the developer as surplus property. The City provided subsidies through its Housing Development Corporation and Department of Housing Preservation. The City’s taxable bonds provided long-term financing and the City also provided a 25 year tax abatement, which limits taxes to the assessment outstanding on a fixed pre-development year. Additionally, the State provided housing tax credits for the workforce units which require a 35 year commitment to continued affordability.

Although a large building, height restrictions and careful design resulted in a complex that masks its size and compliments the surrounding community of brownstones and townhomes. The units feature high quality design and construction. The Cobble Hill neighborhood is close to public transportation including subways and buses.

Columbia Commons/Columbia Hicks Apartment - Brooklyn, New York