FHLBNY and Apple Deliver Funds to Preserve Bronx Affordable Housing
As outlined in two recent reports by Enterprise/National Equity Fund and ANHD, affordable multifamily housing is struggling right now. Skyrocketing insurance premiums, the cost burden of local laws, loss of rental income, rent-up delays, and other operating cost increases have resulted in many viable projects moving into negative cash flow. Thanks to the Federal Home Loan Bank of New York (FBHLBNY) Small Business Recovery Grant program and its member, Apple Bank, UNHP has been able to make essential upgrades and preserve affordable housing for three nonprofit organizations and three different affordable multifamily projects in the Bronx.
This 87- unit building across the street from the Bronx Zoo benefited from an FHLBNY small business grant. While a solar array installed in 2023 reduced utility costs, escalating insurance premiums are pushing the property towards a negative cash flow. Last year saw a 35% increase in premiums, with insurance consuming 20% of the building’s income.
Garden Street provides decent, affordable homes to 87 low-income families and individuals. The building was abandoned by its landlord and owned by NYC in the early 80s. UNHP has overseen the project since 2017, undertaking extensive renovations and, in 2023, the installation of solar panels. The solar payback period was estimated to be about 5 years during the project’s initiation in 2023, and Garden Street is still on track to reach this within the next two years. These savings are reinvested into the building to preserve long-term affordability and habitability for the low-income families that call this building home. The FHLBNY grant to Garden Street HDFC will support our effort to cover payroll and debt service as we work to refinance with NYC HPD to ensure long-term viability.
This Grand Avenue building is currently undergoing repointing and facade improvements to ensure the building’s safety and compliance with NYC Local Law 11. The FHLBNY grant was issued to the ownership entity, Reclaim Round II, and provided financial assistance to help the affordable property address the cost of the renovation and preserve the long-term affordability of the units for the low-income families that call this building home.
Another FHLBNY grant via Apple Bank was issued to Reclaim Round II, a four-building project that provides decent, affordable housing to 161 low-income families and individuals. The FHLBNY Small Business Recovery Grant enabled the completion of essential façade improvements at 2010 Grand Ave. These upgrades addressed exterior wear and helped preserve the building’s safety, durability, and long-term affordability. Reclaim Round II is In 2023. 2010 Grand Ave also received a new roof and solar arrays and is currently on track to reach its payback period by the end of this year. Energy savings from solar will be reinvested into the building, maintaining decent, affordable housing for residents. The costly scaffolding, repointing, and engineer certification keep the building in compliance with NYC’s Local Law 11 for another 5 years.
The FHLBNY Small Business Recovery Grant, via its member, Apple Bank, helped pay for this 18-unit affordable building’s new energy-efficient boiler. Smaller buildings like this one on East 165th Street in the South Bronx are having a difficult time absorbing increasing insurance, regultory and operating costs while maintaining affordable rents for its low-income tenancy.
As a small, affordable multifamily building, 911 East 165th Street has especially struggled to keep up with rising expenses. This property, like the many others detailed in both the ANHD and Enterprise/NEF reports, has a negative cash flow. The property has no mortgage, affordable rents, and a low vacancy rate. A Small Business FHLBNY funds via Apple Bank were used to help replace the boiler at a property owned by the nonprofit BUILD. The new 99% high-efficiency boiler has a separate water heater that will provide hot water to tenants in case of a boiler shutdown. This small two-story building is home to 18 low-income families and individuals. Over the summer, the boiler expired, and the timely award of the FHLBNY grant has reduced the cost of the boiler to the property. The upgrade produces fewer emissions and maximizes energy usage, reducing energy costs. The savings are then directly reinvested into the building to maintain both the habitability and affordability of the housing. To strengthen capital reserves, our 2026–2027 strategy is to consolidate ownership of the 911 East 165th Street property with two additional multifamily projects, allowing for economies of scale and shared resources to offset rising operating costs.
Thank you, Apple Bank and the FHLBNY Small Business Recovery Grant Program, for your support! The Federal Home Loan Bank of New York works through its member banks, like Apple Bank, and offers support to assist small businesses and nonprofits navigate financial challenges such as rising interest rates, inflation, and increasing energy costs. Working together, we can be proud of our efforts to preserve the long-term affordability of multifamily housing in the Bronx for low-income families and individuals.