Buildings on Creston Avenue in University Heights to get makeover from Workforce Housing Advisors

UNIVERSITY HEIGHTS - Several buildings in University Heights will receive makeovers as a result of grants from various city organizations.

Four buildings on Creston Avenue will be improved after years of tenants living in poor conditions. Workforce Housing Advisors, a for-profit developer of affordable housing, took over the properties in 2012. 

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Courtesy of News12 The Bronx

Hope Grows on Kelly Street

By Angely Mercardo
A year ago, nothing Jessica Morales did could keep the smell of rotting garbage out of her Kelly Street apartment.

The stench of garbage piled in the hallways of the 30-unit building at 935 Kelly Street seeped under her door.

“I lit candles and cleaned, but nothing worked. The inside always smelled like the hallways,” Morales said.

Today, she uses the candles to decorate her refurbished living room. The only odor that greets a visitor is a subtle combination of air freshener and furniture polish. New hardwood floors gleam.

Once, the building was infested with “rats that looked like cats,” Morales said. Junkies squatted and garbage was strewn all over the halls.

But in 2011, after the community development organization Banana Kelly Improvement Association and the Longwood-based advocacy organization Mothers on the Move helped organize the tenants at 935 and four neighboring buildings on Kelly Street, the foreclosed properties were purchased by Workforce Housing Advisers, which specializes in renovating troubled buildings. It retained  Banana Kelly as a partner in the project to provide  support services to the residents and Winn Management to provide property management services.

Residents began moving into temporary housing in January 2012. They began moving back this spring. Workforce Housing and Banana Kelly held a ribbon-cutting ceremony on March 21.

It was amazingly quick,” said Harry DeRienzo, the president of Banana Kelly about the process. “Once we had our partners in place, after that went through it took 16 months.”

“I didn’t want to come back at first, “said Morales. “I went through a lot of things here.”

Despite the nightmarish memories, Morales returned with her 13 year old daughter on March 7, and has since fallen in love with the new kitchen and how sturdy everything is.

Filbys Arzu, lives in a second floor apartment with her three children. Before Banana Kelly and Workforce took over, she said, “You could count up to 12 rats running around inside the apartment in one day.”

But for her, the vermin wasn’t the worst; living with fear was.

“There weren’t any locks on the front door. Anyone could just come in and hang out inside the building,” she said.

“The guy that owned this building belongs in jail,” said DeRienzo of the ousted owner who allowed the building to deteriorate for so long. “He lost his building, so he probably feels like he was held accountable,” he said. But he was able to take out $5 million in mortgages. “None of that money went into the building,” DeRienzo continued. He’s “probably a millionaire now.”

In 1996, the buildings at 916, 920, 924, 928 and 935 Kelly carried a mortgage of $684,000. A series of refinances followed, each increasing the owner’s indebtedness. In 2009, Ridgewood Savings Bank granted a new loan of $5 million, according to city records.

Despite the infusion of cash, the buildings continued to deteriorate. At the ribbon-cutting, Marie Graziano, a coordinator at Banana Kelly, said that she has seen other buildings that had deteriorated, but she has “never seen anything as bad as 935.” Con Edison wasn’t even able to go into the basement because of “puddles, sewage and rats,” she said.

“There were people taking insulin and the refrigerators were not working. We had to take care of those right away,” said Graziano.

Both she and Kevin Gallagher of Workforce Housing Advisors recalled a woman with a new born baby and no heat in her apartment. “She had no living room window and only a blanket to keep out the cold,” said Gallagher.

Now, the 30 apartments in 935 Kelly St. are being filled with hopeful tenants. Since moving back in, Arzu has a new found peace of mind. “They changed everything,” she said. “I feel as if I’m in another building altogether.”

At the ribbon-cutting, several residents expressed their gratitude toward Banana Kelly.

Miranda Sills, told the crowd of living with “no fridge, no stove and no power.” Now, thanks to the renovations, Sills is eager to move in and enjoy her apartment.

Morales stepped forward and addressed the crowd with a shy smile. “Compared to what I had before,” she said, “I have a mansion now.”

Development group announces request for proposals for healthy foodbusiness in renovated Bronx slums

VIOREL FLORESCU FOR NEWS/STR

BY DANIEL BEEKMAN / NEW YORK DAILY NEWS

Kelly Street Restoration is developing five troubled apartment buildings on Kelly St. in Longwood.

"Kelly Street Green" project would offer grants, free apartment, access to local produce

Wanted in the Bronx: entrepreneur to convert notorious slum into fresh food enterprise.

The development group behind the renovation of five buildings on Kelly St. is looking for an individual or organization to open a new business there, such as a healthy takeout restaurant, it announced Thursday.

Kelly Street Restoration has released an unusual request for proposals for 2,822 square feet of revamped commercial space at 935 Kelly St., with frontage on bustling E. 163rd St. in Longwood.

The applicant the development group selects will lease the space at a substantial discount - $7 per square foot or roughly 1/4 of market rate - and benefit from up to $150,000 in grants and loans to cover startup expenses.

It will also gain access to fruits and vegetables grown at a new community garden behind the buildings and farms upstate. Lastly, the selected operator will score a rent-free apartment at 935 Kelly St, plus mentorship from successful Manhattan restaurateurs.

Kelly Street Restoration hopes to select a local go-getter with a small bank account and a big heart, said John Crotty of Workforce Housing Advisors, 1/3 of the development group.

Longwood needs a new type of business that caters to busy working people who want to eat healthy, he said. The project is called "Kelly Street Green."

"We want to take someone on a well thought-out gamble, someone who understands that this will require effort and commitment and someone who can be an agent for change," Crotty said.

That someone could be Darada David. For two years, the Bronx native ran a tiny restaurant, health food store and Internet café sandwiched between bodegas and fast food joints on Melrose Ave. near the Hub.

PeaceLove Café hosted live jazz and poetry slams, and served tasty sweet potato pie. But the cafe closed last August because David could no longer make rent.

"That type of business in the Bronx needs a lot of support," said David, who will think about applying for the Kelly St. space. "Sometimes a feel-good business makes less money, but it does a lot for the community."

Kelly Street Green is the cherry atop a $16 million residential overhaul that began in January.

Workforce Housing Advisors, Monadnock Construction and Banana Kelly Community Improvement Association, a nonprofit, are rebuilding 916, 920, 924, 928 and 935 Kelly St., some of the worst slums in the borough.

For years, tenants in the gritty walkups lived with broken windows, leaks, rats and roaches, and went without heat. The tenants are living elsewhere during the renovations but will keep their old rents when they move back.

The new business will replace a Chinese takeout restaurant, nail salon and discount store that all closed this past winter. To learn more, visit kellystgreen.com.

Read more: http://www.nydailynews.com/new-york/bronx/development-group-announces-request-proposals-healthy-food-business-renovated-bronx-slums-article-1.1127767#ixzz22m0kTe2o

Kelly Street Restoration Announces RFP for Healthy, Fresh Food Purveyor in South Bronx

Kelly Street Restoration LP announces a Request for Proposals for the newly redesigned 935 Kelly Street commercial space

Seeking an operator to provide fresh, healthy food options in the South Bronx
Significant incentives provided to ensure long term success.
www.KellyStGreen.com

Kelly Street Restoration LP (KSR) announces the launch of their Request for Proposals seeking an operator for the newly designed commercial space at 935 Kelly St in the Bronx. KSR is actively seeking proposals from individuals, companies, or organizations to lease, operate, and maintain any portion up to and including the full 2,822 square feet of commercial space that is part of the Kelly Street Portfolio. Specifically, KSR is looking to fill the commercial space with a business use that will produce significant impact in the following three areas:
1. Increasing access, availability and awareness of affordable, healthy and fresh food for all members of the community.
2. Improving health and nutrition options available.
3. Generating economic opportunities through the creation of fulltime and part time jobs for community residents.
In order to help ensure the success of this new venture, KSR will offer the following:
• The space will be rented at roughly 1/4 the current market rate ($25 Sq ft vs. $7 Sq ft)
● The lease of an apartment on Kelly Street at no cost
● Access to and coordinated use of a portion of the adjoining food-producing community garden to supplement the goods sold.

"I am excited about the release of this new RFP for the newly redesigned Kelly Street commercial space. This new proposal will not only help grow our economy by creating much needed jobs, but is also a positive step toward improving the health of countless Bronxites by seeking a business that provides access to affordable, healthy and fresh food in a neighborhood that is currently underserved,” said Bronx Borough President Ruben Diaz Jr.

In addition, GrowNYC, a key strategic partner, will help secure one or more New York farm(s) to supply the awardee with a continuous pipeline of fresh food for use in this project. Finally, KSR has initiated conversations with various financial and philanthropic partners and will work with them and the awardee to help defray or absorb up to $150,000 of the capital costs (through a combination of grants and low interest loans) associated with the winning proposal.

“For too long, Kelly Street was seen as an eye-sore with few opportunities, but with the redevelopment underway and the release of this RFP, we are seeing the turnaround of Kelly Street. I applaud Kelly Street Restoration's vision, for recognizing that access to healthy, affordable food is a critical part of a healthy community. KSR is pushing the envelope of what an affordable housing project can do to address the needs of its residents and neighbors, and I look forward to seeing the proposals that are submitted for this commercial space,” said City Council Speaker Christine C. Quinn

“GrowNYC is proud to partner with KSR. Only in New York could you find such a great opportunity for a budding entrepreneur. We’re able to deliver high-quality product from our regional farmers, putting money in their pockets, and work alongside the RFP winner to provide a needed amenity for an underserved community: a beautifully designed hub where all Bronx residents can purchase healthy, local food,” said Marcel Van Ooyen, Executive Director of GrowNYC.

As a long-term owner and developer, KSR has deep understanding of affordable housing and the complexities of long term ownership. Green food initiatives in NYC are a growing concern. KSR has assembled a broad and diverse team to analyze the submissions, to advise respondents about their submissions in order to refine them, and ultimately, to recommend the winning proposal. The Advisory Committee members with more practical day to day experience of running a commercial enterprise will offer mentoring on an on-going basis for the awardee.

“This type of endeavor was always in our plans,” said John A. Crotty, Partner at Workforce Housing Advisors (a member of the KSR team), “but we are affordable housing developers. Collectively, the KSR team decided that it was better to let the private sector deliver the best proposal to reach our goal in creating an outstanding use of the space with the incentives we have spelled out. We are lucky to have a committee with such deep and diverse experience to analyze the proposals, shape the final product and recommend the best plan. We are grateful for their time and effort. We think the result will be transformative for the neighborhood.”

The Advisory Committee (to date):

• Colleen Flynn, (Community Development Officer, LISC New York City)
• Mario Fuentes (Owner and Chef, Rialto’s)
• Rebecca Lurie (Consortium for Worker Education)
• John Mc Fadden (General Manager and Owner, Pershing Square)
• Neal J. Parikh (Morgan Stanley, Global Sustainable Finance)
• King Phojanakong (Owner, Kuma Inn & Umi Non Chef, CIA Graduate)
• Chris Reisig (Serial entrepreneur and technology executive)
• Marcel Van Ooyen (Executive Director, GrowNYC)
• Kerri White (Co-Director Organizing, UHAB)
• Jeffrey Zurofsky ( Partner & co-founder, 'wichcraft, Riverpark & Riverpark Farm )

To obtain a copy of the RFP, visit www.kellystgreen.com. Questions, contact info@kellystgreen.com or call 646-484-6399.

Kelly Street Restoration Project Partners:


• Workforce Housing Advisors (WFHA) is a for profit affordable housing development firm that specializes in re-purposing distressed multifamily real estate in the New York metropolitan area. WFHA works collaboratively with for-profit, not-for-profit, and government partners to reposition financially and physically distressed properties as long term affordable housing resources. Among other projects, WFHA is currently rehabilitating 1520 Sedgwick Avenue, “The Birthplace of Hip Hop”.

• Monadnock Construction was established in 1975 and has grown into one of the largest and most reputable residential contractors in the New York area. Monadnock's operations are supported by a staff that is experienced in all aspects of government compliance and reporting. Monadnock has a Contractors Controlled Insurance Program (CCIP) with dedicated safety staff monitoring all projects and a large bonding capacity from a AAA- rated company.

• Banana Kelly Community Improvement Association (BK) was founded in 1978 and is registered as a 501 (c)(3) non-profit. BK is recognized by the community they serve and by New York City at large, as committed to the growth and independence of individuals, families, and to the self-sufficiency of the Longwood - Hunts Point community as a whole.

World's Greatest Bank Finances Project for One of NYC's LeadingAffordable Housing Providers....

Morgan Stanley Provides Financing to Kick-Start Preservation of Distressed Residential Buildings in the Bronx

Financing Will Help Four of New York City’s Most Distressed Multi-family Residential Properties to Undergo Eventual Rehabilitation

Jun 4 2012 | New York           

Morgan Stanley (NYSE: MS) has provided multi-million dollar interim financing to Workforce Housing Advisors, Inc. (WFHA) to make possible the rehabilitation of four multi-family buildings with 120 units in the Bronx.

The four buildings, located at 2239, 2241, 2323 and 2333 Creston Avenue, have deteriorated significantly in recent years, amassing building code violations, as well as municipal liens and fines.

The buildings, which are occupied, have been placed in the New York City Department of Housing Preservation and Development’s (HPD) Alternative Enforcement Program, which annually targets the 200 most distressed multi-family residential properties in the City for intervention.  WFHA, in partnership with the NYC Partnership Housing Development Fund Company Inc., a not-for-profit housing development fund company, has taken ownership of the buildings.

The interim financing provided by Morgan Stanley allows WFHA to pay down the municipal arrears and move forward with preparations to renovate the buildings.  HPD expects to provide a low-interest loan through its Preservation Participation Loan Program, in conjunction with more conventional financing and Low Income Housing Tax Credits, to fund the rehabilitation of the properties and preserve them as affordable for current and future tenants.  In the last two years, this type of public-private financing in partnership with HPD has stabilized 1,500 units in comparably distressed and overleveraged properties, effectively preserving the housing as affordable over the long term.

“We appreciate Morgan Stanley's leadership in stepping up to partner with us on this project,” said John A. Crotty, founding partner of Workforce Housing Advisors.  “Their support will allow us to take the critical first step of a long-term process to transform four buildings in the Bronx in significant need of rehabilitation and make a substantial difference in the lives of the working families who reside there.”

Said Audrey Choi, Head of Global Sustainable Finance at Morgan Stanley: “We are committed to supporting affordable housing in our communities.  We see this as a unique opportunity to improve the living conditions of families and individuals in need of sound, affordable housing in the Bronx.”

Part of the financing provided by Morgan Stanley allows for payment to the City of three-quarters of a million dollars to clear liens due to unpaid taxes, municipal charges and emergency repair expenditures.  Without the new financing, the high holding costs would have continued to burden the properties, further delaying the shift to rehabilitation.

“It takes many steps and many partners to rescue and restore distressed affordable housing,” said HPD Commissioner Mathew M. Wambua.  “The buildings on Creston Avenue have miles to go before their tenants will be able to feel comfortable and secure.  But we are on the right path – and welcome Morgan Stanley as a new partner in our ongoing efforts to preserve the City’s existing multi-family housing stock.  The financing they have provided has kick-started the turnaround process, and that is a commitment for which we are gratified.  More importantly, by making this commitment, they agree as we do, that financing housing in our City is a very sound investment in our collective future.”

In the last two years, HPD financing has stabilized 1,500 units in distressed and overleveraged properties, including two other transactions with Workforce Housing Advisors, with 174 more distressed units slated to begin construction by the start of the summer.

About Morgan Stanley

Morgan Stanley is a leading global financial services firm providing a wide range of investment banking, securities, investment management and wealth management services.  The Firm's employees serve clients worldwide including corporations, governments, institutions and individuals from more than 1,300 offices in 43 countries.  Since 2006, Morgan Stanley has executed more than $5 billion in loans and investments to strengthen underserved communities.  For further information about Morgan Stanley, please visitwww.morganstanley.com.

About the NYC Department of Housing Preservation and Development (HPD)

HPD is the nation’s largest municipal housing preservation and development agency.  Its mission is to promote quality housing and viable neighborhoods for New Yorkers through education, outreach, loan and development programs and enforcement of housing quality standards.  It is responsible for implementing Mayor Bloomberg’s New Housing Marketplace Plan to finance the construction or preservation of 165,000 units of affordable housing by 2014.  Since the plan’s inception, more than $19.4 billion has been invested or leveraged by the City to finance the creation or preservation of more than 130,606 affordable homes.  For more information, visitwww.nyc.gov/hpd.

About Workforce Housing Advisors

Workforce Housing Advisors operates in the multi-family real estate market in the New York metropolitan area by repositioning distressed assets as affordable housing resources.  It works collaboratively with for-profit, not-for-profit and government partners to execute redevelopment plans for properties that had previously been subject to financial and physical distress.

Contact: Media Relations, Sandra Hernandez, 212.761.2446

.... And the local media heralds the historic financing.

Properties on the city's list of the 200 most distressed multifamily residential buildings will get $7.5 million in financing from Morgan Stanley.

By Amanda Fung

Four physically rundown, financially overleveraged multifamily buildings in the Bronx recently received an injection of much-needed capital courtesy of their new owner, Workforce Housing Advisors Inc.

The buildings, located at 2239, 2241, 2323 and 2333 Creston Avenue, have accumulated numerous building code violations and liens. Morgan Stanley has agreed to provide $7.5 million in interim financing to help start the rehabilitation of the properties. The money will be used to pay down the $750,000 in back property taxes, municipal liens and emergency repair expenditures that the previous owners amassed over the years, according to John Crotty, founding partner of Workforce Housing Advisors.

"The loan allows us to take the first step in turning these buildings around and fixing them," said Mr. Crotty, adding that his firm first bought the note on the buildings, which have a total of 120 units, and foreclosed on them in order to take over the properties earlier this year.

All four of the properties are in the city Department of Housing and Preservation and Development's Alternative Enforcement Program, which targets the 200 most distressed multifamily residential properties in the city. Additionally, the previous owner of 2239 Creston Ave. and 2323 Creston Ave. was on the city public advocate's worst landlords list. Combined, both buildings have more than 1,000 violations, according to the watch list's website, which currently indicates that work is now being done at the buildings.

"We see this as a unique opportunity to improve the living conditions of families and individuals in need of sound, affordable housing in the Bronx," said Audrey Choi, head of global sustainable finance at Morgan Stanley, in a press statement.

Additionally, the city Department of Housing Preservation and Development expects to provide financing, in the form of low-interest loan, low-income housing tax credits and other conventional loans, to pay for the actual rehabilitation of the buildings and to ensure that the units there remain affordable. Mr. Crotty said the firm is still working out the total cost to fix the buildings, but noted that the rehab could cost roughly $100,000 a unit.

"Some units are in worse condition than others," Mr. Crotty added. "We don't know at this point how long the rehab work will take but we want it to be as painless for residents as possible."

Workforce Housing Advisors bought the four Bronx buildings in partnership with NYC Partnership Housing Development Fund Company Inc., a non-profit housing development fund company. Founded in 2009, Workforce Housing Advisors currently owns 527 units in the city, mostly in the Bronx. The firm focuses on repositioning distressed multifamily properties and preserving affordability.

Entire contents ©2012 Crain Communications Inc.
Article can be found at http://www.crainsnewyork.com/article/20120608/REAL_ESTATE/120609882

Kelly Street Plans Firm Up, New Future is on the Clock

With help from city, development group lands dollars to renovate five horrible slums on Kelly St. in Bronx

Workforce Housing Advisors gets $16 million to rehab Bronx slums

BY DANIEL BEEKMAN / NEW YORK DAILY NEWS

Friday, January 6 2012, 6:00 AM

The front door at 916 Kelly St. had no lock Wednesday. Yellow paint peeled off the walls in the lobby and a skinny kitten mewed outside an abandoned apartment.
The Longwood walkup is among the worst slums in the Bronx, with broken windows, leaks and no heat - but it won't be a slum much longer.
It and four other rundown Kelly St. buildings are slated for a multi-million dollar makeover, following a city crackdown on their previous landlord.
New landlord Workforce Housing Advisors has closed a $16 million public-private financing deal to renovate 916, 920, 924, 928 and 935 Kelly St. The buildings, with 80 units between them, boast hundreds of dangerous housing code violations.
"I'm just hoping the new company is better," said tenant Gamaliel Morales, 59, breaking into a relieved smile. "I've been through hell with this building."
During the 1970s, when the Bronx was burning, the five Kelly St. tenements were the only well-kept buildings in Longwood. But they changed hands during the 1990s and began to decay. The buildings were left for dead soon after their landlord took out a bloated $5 million mortgage, just as the housing market collapsed.
Now four years of lawsuits and enforcement by the city Department of Housing Preservation and Development have paid off, said HPD Commissioner Matthew Wambua. "Kelly St. has been emblematic of the struggle of neighborhoods to exist and endure in up and down markets," he said, vowing the buildings will become "secure, safe havens" for low-income tenants.
The buildings were named among the 200 worst in the city by HPD starting in 2007 and the agency spent hundreds of thousands of dollars on emergency repairs there. Last January, Workforce bought the debt on the slums and local community group Banana Kelly was appointed to manage the abandoned buildings.
Workforce foreclosed on the buildings and then bought them at auction in August. Now the firm, led by ex-city developers, has cobbled together a financial package to rebuild the block.
With loans of $3.4 million from HPD Chase bank and $9.28 million generated by low-income housing tax credits, Workforce will install new windows, walls and doors, and new plumbing, heat and electrical systems.
Workforce partner John Crotty called the deal a model for how the city can combat property neglect by speculators in the aftermath of the real estate bust. "We applaud everyone who demonstrated the courage necessary to make this renewal occur," he said.
Workforce is moving the Kelly St. tenants to other Bronx buildings during the project, which Crotty said would last roughly 18 months. When the work is complete, Banana Kelly will provide social services to the tenants.
When they move back, the tenants will keep their old rents and new tenants will benefit from low rents for 60 years.
"I'm happy, because my apartment has so many problems," said tenant Vickiana Suniel, 27. "I had rats bigger than my dog."