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Q&A
Discussion on mixed-use development and HPD financing
0:46:51
·
65 sec
Council Member Crystal Hudson inquires about HPD's experience financing projects with large commercial components. Michael Berfield explains HPD's approach to such mixed-use developments.
- HPD subsidy goes exclusively towards the affordable housing portion of the project
- Commercial components are typically separated through a condominium regime for financing purposes
- Developer has experience with similar projects, citing an example in East Harlem
Crystal Hudson
0:46:51
Okay.
0:46:51
And I know your your proposed development is mixed use with a large retail component and I know that HPD is not here, but to your knowledge, have they financed projects with such large commercial footprints in the past?
Michael Berfield
0:47:04
There's one answer the answer to that is they don't provide any of their subsidy towards the commercial project.
0:47:10
So their subsidy goes exclusively towards the affordable piece of the project.
Crystal Hudson
0:47:15
And have they do you know have they done that on projects with this large amount of a commercial footprint?
Michael Berfield
0:47:20
We actually built just such a project in East Harlem recently, at 201 East 120 Fifth Street.
0:47:27
In a partnership, we produced a building that has approximately 400 units, 300 of which are affordable and about 70,000 square feet of commercial space anchored by a 45,000 square foot grocery store.
0:47:39
So they do have experience in financing projects where you have a large commercial component.
0:47:45
Typically, those components are separated out through a condominium regime and in terms of how they're financed and so that the HPD subsidy goes exclusively towards the affordable units.