June 28, 2018Fannie Mae Announces $26 Million Low-Income Housing Tax Credit Investment
Financing Backs First Phase of Largest Residential Development in Downtown Far Rockaway, New York
WASHINGTON, DC – Fannie Mae (FNMA/OTC) announced today that it will provide a $26 million LIHTC equity investment to facilitate the construction of Far Rockaway Village, a 457 unit residential development in the downtown Far Rockaway area of Queens, New York. Fannie Mae will back the project through The Richman Group Affordable Housing Corporation, a Fannie Mae Low-Income Housing Tax Credit (LIHTC) fund partner.
The project is the first phase of the largest residential development planned in the Downtown Far Rockaway neighborhood rezoning plan. Far Rockaway Village (Phase 1), will consist of two, twelve-story residential high-rise buildings located at 20-02 Mott Avenue in Queens, NY. The development will comprise 227 LIHTC units available for residents earning between 30% and 60% of area-median-income (AMI). Remaining units will have rent affordable to households earning approximately 70% of AMI. In addition, 46 units available at 30% of AMI will be targeted to formerly homeless people though the “Our Space” program and will be underwritten at the NYC Shelter Allowance level. The property also will include sustainable features, such as energy-efficient measures, ENERGY-STAR® appliances, a rooftop solar array, and will be certified under Enterprise Green Communities standards. Construction is expected to begin in July 2018 with an expected completion date of June 2021.
“This LIHTC investment helps us support affordable multifamily housing in one of the highest cost markets in the U.S.,” said Dana Brown, Vice President, LIHTC Investments, Fannie Mae. “LIHTC enables Americans to find affordable rental housing, and we are excited to work with our partners to address our country’s pressing affordable housing challenges.”
The developer of the project is Phipps Houses, the oldest and largest non-profit developer of affordable housing in New York City. Phipps Houses owns more than 4,000 units of affordable housing. Other investors in the development are People’s United Bank, N.A. and Signature Bank. NYC Housing Development Corporation and NYC Department of Housing Preservation and Development are providing significant investments of Tax Exempt Bonds, allocation of the 4% Low-Income Housing Tax Credits, and low cost loans.
The Federal Housing Finance Agency (FHFA) in November 2017 approved Fannie Mae’s re-entry into the LIHTC market as an equity investor. Fannie Mae’s deep experience, long history, strong leadership, and partnership approach in the LIHTC market positions the company to provide immediate and ongoing support for the production and preservation of affordable rental housing.
For more information about Fannie Mae’s Low-Income Housing Tax Credit program, visit our LIHTC program website.
Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of Americans. We partner with lenders to create housing opportunities for families across the country. We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and risk. To learn more, visit fanniemae.com and follow us on twitter.com/fanniemae.