Gotham Organization and partners secure $314 million construction financing package for phase 1B of Innovative Urban Village

Brooklyn, NY Gotham Organization, in partnership with Monadnock Development, the Christian Cultural Center (CCC) and Reverend A.R. Bernard, as well as New York City Housing Development Corp. (HDC) & New York City Department of Housing Preservation and Development (HPD), closed on a $314 million construction financing package. The financing will be used to start construction of phase 1B of the Innovative Urban Village (IUV).

The visionary plan, designed by PAU, will transform the Christian Cultural Center’s existing 10.5-acre campus into a mixed-use ‘urban village’ with income-based affordable housing supported by numerous community amenities necessary for economic mobility, sustainability and healthy living. The partnership previously made known a $270 million construction financing package in April 2024, which advanced construction on phase 1A of the development.

Red Stone Equity Partners, the syndicator, raised $151 million in low income housing tax credit and brownfield credit equity financing provided by JP Morgan Chase, the investor. Total peak construction debt proceeds of $260 million, inclusive of up to $144 million in construction tax-exempt bonds and $116 million of long-term below market-rate debt financing are provided by HDC and HPD. JP Morgan Chase also provided the Letter of Credit in support of the debt bonds.

“Red Stone Equity Partners extends our congratulations to all of the private sector and public sector partners who have joined forces to create one of New York City’s most important affordable housing and mixed-use developments ever,” said Richard Roberts, a principal and managing director at Red Stone. “We’re proud to have provided over $150 million in tax credit equity to this project — the largest single project level investment in our 17-year history. The project will not only provide much needed affordable housing but also will feature important elements that will help the residents and the broader East NY community to thrive and reach its full potential. We want to thank our partners at Gotham and Monadnock for giving us this opportunity to invest in this amazing project.”

“Once complete, the second phase of Innovative Urban Village will deliver over 450 deeply affordable homes, coupled with modern amenities and affordable broadband for all residents,” said HDC president Eric Enderlin. “As we work to address the ongoing housing crisis, HDC is proud to support the financing of this transformative multi-phased development that will benefit the entire East New York community.”

“This is a day of celebration for East New York,” said HPD acting commissioner Ahmed Tigani. “Anchored by the continued strength of the significant and invaluable development partners that make up IUV, the vision takes another step forward to deliver more deeply affordable homes, eagerly desired space for older adults to age safely in community, and new options for families seeking a path to homeownership—all within the same dynamic proposal passed by the Council just a few years ago. In a city where too many people are being priced out of the neighborhoods they’ve always called home, this project is about investing in people, not just buildings. Projects like this don’t happen overnight, and they don’t happen without deep collaboration. We’re proud to be part of it.”

“Innovative Urban Village is a shining example of what holistic affordable housing can and should be and comes at a time of tremendous need in this community,” said Jane Silverman, executive director, JPMorgan Chase Community Development Banking. “We are honored to fund a project that will support the community for the long term, with local retail, access to healthful food and community spaces.”

CCC selected Gotham Organization as its partner to help plan and build the new community in 2018, concluding a rigorous RFP process. The two organizations partnered over a period of five years, collaborating and communicating with the public, community organizations and city leadership. As a result, full ULURP approvals were granted in 2022. Upon completion, the full Innovative Urban Village will create approximately 1,975 income-based affordable housing units

“Innovative Urban Village will not only deliver vital, affordable housing to our community, but also critical services that are often overlooked by traditional mixed-use plans,” said reverend Bernard. “We are honored to have the support of our partners, and the City and State of New York, to deliver a sustainable, mixed-income community to East New York.”

“In the midst of a severe housing crisis, the Adams Administration delivered the critical resources necessary to create affordable mixed-income housing for East Brooklyn, strengthening the economic mobility of Brooklynites and advancing the transformative vision of our partner A.R. Bernard,” said Bryan Kelly, president of development at Gotham Organization.

“Innovative Urban Village is about pastor Bernard, Gotham and Monadnock deciding to see people in need rather than simply housing units. Our collective focus is on transforming lives and communities. I am proud of what we are doing and excited to see the impact the completed vision will have,” said Kirk Goodrich, President of Monadnock Development.

Phase 1B includes two mixed-use buildings, totaling 493,000 s/f, and its residential component will include 453 affordable rental homes. The development plan also incorporates 12,000 s/f of community facility space, 10,000 s/f of neighborhood retail space and 102 below-grade parking spaces. Phase 1B is targeted for completion by 2027.

The previously announced phase 1A will consist of 386 affordable rental residences for individuals or families earning 30-80% of the NYC Metropolitan Area Median Income. In addition to the residential component, phase 1A will also include about 17,000 s/f of neighborhood retail and commercial space. Through the partnership, the phase 1A retail program will include a fresh food grocery, providing tenants across the overall development with access to fresh groceries within walking distance of their homes.  Phase 1a is expected to be complete in 2026.

The development will implement a holistic approach to the community designed to maximize diversity and enhance economic opportunity. Residences will be available as the development is constructed through a lottery process administered by the city. Following productive conversations with community leaders and residents throughout the ULURP process, income levels for the overall project target a diverse population to address the ongoing housing crisis and the issues that rent burden has on working households.

The plan also includes necessary services, including a workforce development center,  a childcare facility, a performing arts center, a fresh food grocery store and lifestyle-enhancing retail. The entire community will be seamlessly connected by multiple acres of walking paths and green spaces, these amenities combine to create a livable, walkable, collaborative and accessible ‘urban village’ lifestyle.