The planned renovation of a senior affordable-housing building near downtown New Rochelle, can start next month, thanks to the state approval of $9.5 million in borrowing through tax-exempt bonds, the developer said Friday.
John Madeo, executive vice president of Mountco Construction and Development Corp., said the renovation of Maple Terrace, an 11-story building at 55 Maple Ave., will take about a year. It will include a new roof, new heating system and new appliances for the tenants.
“By December 31 of 2013, all of the renovations will be complete,” Madeo said.
The work will be done with the tenants remaining in their homes, even though that will make the project more labor-intensive, he said.
The state approval clears the way for the money to be loaned through New Rochelle’s Industrial Development Agency, a step that allows the tax-exempt status on the borrowing.
In all, it is a $16 million project. Part of it includes Mountco’s purchase of a 50 percent interest in the building from the Interreligious Dwelling Corp.
Since Mountco is a private company, the building’s property tax exemption will be erased. Early this year, the city approved a deal that will allow the company to pay $90,000 in annual city, school district and county taxes, increasing 2.5 percent each year for 30 years.
Officials said it was a benefit to New Rochelle because the city had been collecting nothing in property taxes on the building.
The residents will retain Section 8 status that allows them to live there by paying 30 percent of their incomes in rent. The rest is covered by the U.S. Department of Housing and Urban Development. Residents must be at least 62 years old, and must make no more than 60 percent of the area’s median gross income.
Jeremy Schulman, the city’s IDA and economic development manager, said the project will improve the quality of life for residents of the 101 units in the building. What’s more, he said, it would also extend the deed restrictions, which saves the apartments for residents at least 62 years old and making no more than 60 percent of the area’s median gross income.
“It will provide long-term security for these low-income tenants,” said
As part of the deal, Mountco will pay the city $250,000 for upgrades and maintenance of lighting, roads and other infrastructure around the building.