Capital One Provides $91M Letter of Credit for Bronx Affordable Housing Project

A joint venture between developer Type A Projects and BronxWorks has sealed $255.7 million of construction financing to build a 100 percent  affordable and supportive housing property in the Bronx, Commercial Observer has learned.

Capital One closed a $91.4 million letter of credit to support municipal bonds issued by the New York City Housing Development Corporation for the planned 328-unit River Commons project located a half-mile from Yankee Stadium. The agency provided $64.3 million of tax-exempt bonds and $27 million of taxable debt. 

The New York City Department of Housing Preservation and Development also supplied $109.9 million through its new construction financing program with Hudson Housing Capital also providing $19 million equity investment by purchasing low income housing tax credits. The project, too, received $34.6 million in tax deferrals for various expenses and $500,000 in capital grant funding from Bronx Borough President Vanessa Gibson. 

“Type A Projects is incredibly proud to be part of the solution to New York City’s affordability crisis with beautifully designed and sustainably built affordable homes for hundreds of families at River Commons,” Annie Tirschwell, principal at Type A Projects, said in a statement. 

Located at 1240 River Avenue on the site of a former parking lot, the River Commons project will have 230 apartments designated for those earning below 70 percent of the area median income. An additional 98 units will also be set aside as supportive housing rented in partnership with New York City Health + Hospitals and the city’s Human Resources Administration for homeless individuals. 

L+M Development Partners is also part of the development team for the 17-story project slated to begin construction next year. 

The River Commons project will have apartments ranging from studios to three bedrooms with residents having access to on-site social services. Community amenities will include a fitness center, a children’s playroom, a community room, co-working space, a 15th-floor community terrace and 24/7 security.

“BronxWorks is proud to be part of the River Commons development, offering much-needed quality affordable housing to individuals and families in the Bronx while simultaneously expanding access to health care and social services to achieve long-term stability,” Eileen Torres, CEO of Bronxworks, said in a statement. 

River Commons was spurred by a 2018 Jerome Avenue rezoning plan that allowed 4,600 units of new housing, including 1,150 permanently affordable units along 95 blocks of the central and southern Bronx. 

Capital One did not immediately return a request for comment.

Andrew Coen can be reached at acoen@commercialobserver.com.