Bronx revitalization housing, project opens

    The largest affordable housing project In New York State’s Housing Trust Fund Program, constructed by Procida Construction Corp. with an $8 million loan from Norstar Bank, a subsidiary of Fleet/Norstar Financial Group, has opened in the Bronx.

    The newly constructed 76-unit Eae J. Mitchell Terrace, completed ahead of schedule in just 11 months, is one of the first projects opened under New York State's Low Income Turnkey/Enhanced Housing Trust Fund Program. The program was established in 1988 to expedite construction or rehabilitation of affordable rental units.

    Several other Turnkey programs are in the planning or construction stages in the New York area, including a 51-unit apartment complex in East Harlem which is being rehabilitated with a loan provided by Norstar Bank.

New housing projects

    The method used to create this highly needed housing for poor and low-income tenants serves as a model for a host of projects. New York State, instead of being in the "housing business" by serving as planner, developer and property manager has instead turned to a form of "privatization" by enlisting the support of a private developer, not-for-profit community group and private developer, not-for profit community group and private lender.

    Under the program, the New York -State Division of Housing and Community Renewal Issues a turnkey commitment for permanent financing to the developer prior to the commencement of construction. In this case the developer is EJM Housing Development Fund Co., which is a joint venture between Procida Construction Corp. and M.B.D. Community Housing Corp. Procida Construction Corp., the builder, has constructed and rehabilited over 1,000 affordable housing units within the last five years.

    Eae J. Mitchell Terrace. located in the West Farms/Crotona Park section of the Bronx, will now be owned by EJM Housing Development Fund Co. and M.B.D. Community Housing Corporation, a not-for-profit community organization, will manage the complex.

'Good business for us'

    "We hope the bank's role in helping revitalize this neighborhood will be repeated many times here and elsewhere," said Executive Vice President James F. Murphy, Fleet/Norstar Financial Group, parent company of Norstar Bank, who spoke at the opening. "While the bank is playing a vital role in revitalizing our community, having our loans guaranteed by the state and repaid in such a timely way makes it plain good business for us. It's a delight to be part of a Bronx on the way."

    Also attending the October 30 opening were William and Mario Procida, of Procida Construction Corp., and Brad A. Schneier, Senior Vice President; New York City Commercial Real Estate, Norstar Bank.

    Speakers included State Lieutenant Governor Stan Lundine; Angelo Aponte, Commissioner of the New York State Division of Housing-and Community Renewal; and Bronx Borough President Fernando Ferrer.