A new affordable housing complex in one of Brooklyn's poorest neighbourhoods has moved a step closer to completion, thanks to a combination of private and public funding. Apex Building Group and L+M Development Partners have secured $217 million in construction loan financing for the third phase of the Alafia Project. This project is a two-building residential development that will include 273 affordable housing units and new public green spaces in East New York, Brooklyn.
Redstone Bank, in conjunction with the Goldman Sachs Urban Investment Group, and the New York State Energy Research and Development Authority provided an undisclosed amount in construction loans. New York State Homes and Community Renewal, the state's umbrella organisation for affordable housing and housing finance, is expected to provide $97 million in equity via the federal Low-Income Housing Tax Credit programme. The state's Low-Income Housing Tax Credit is projected to deliver $14 million in equity and a further $57 million in tax-exempt bonds for the project's remaining equity.
The larger Alafia redevelopment project will eventually transform 27 acres of the former Brooklyn Developmental Center, a former state facility for people with intellectual disabilities, into a mixture of new affordable housing, community centres and mixed-use retail developments for the residents of East New York. The neighbourhood's poverty rate stood at nearly 22 per cent in 2024, compared to 18 per cent city-wide, according to New York University.
RuthAnne Visnauskas, Commissioner of New York State Homes and Community Renewal, stated that the $217 million investment encompasses modern and sustainable housing, as well as recreational and green spaces that would foster a sense of community. Hope Knight, Commissioner, President and CEO of Empire State Development, also expressed a positive view, emphasising that hundreds of additional affordable homes, thoughtfully designed public spaces, and sustainable infrastructure will strengthen the East New York neighbourhood as this next phase progresses.
The entire final development is expected to include several apartment buildings with 2,600 units of affordable housing, a new 50,000 square foot medical facility and a senior health centre with ground floor retail space, as well as approximately 20,000 square feet of public green space. Jessica Yoon, Managing Director at L+M Development, highlighted that the project would not be possible without the support of the partners and that they were delighted to move into the next phase, which will bring more affordable housing and significant public space to the community. Phase 3 is expected to be completed in 2029.
