Via Verde

South Bronx NY
UNIVERSITY OF MARYLAND
COLVIN INSTITUTE OF REAL ESTATE DEVELOPMENT
2017 CASE STUDY CHALLENGE

Team #22
Contents
Introduction 1
Market Analysis 2
Development Team 4
Planning & Entitlement Issues 4
Design Concept 5
Site Planning 6
Sustainability 9
Financing 11
Exit Strategy 14
Operational Issues 15
Impact 16
Introduction
The vision to create housing that 165,000 units of affordable Via Verde offers innovative,
fits the community and urban housing for half a million New high-quality sustainable design
context, integrates sustainable Yorkers by the close of fiscal and affordable rental and
features in an affordable design, year 2014. housing ownership to a range of
and is replicable in terms of income levels with a special
construction and cost is of great Under this scheme, Via Verde emphasis on community
importance today in New York was developed on one of the integration and health-focused
City. last few remaining parcel’s in the amenities. It is a LEED 2013
South Bronx that were taken Gold certified project under the
This growing need for affordable through in-rem tax foreclosure New Construction V2 category.
housing in New York City saw when ’The Bronx (was) Burning’
little response from during the 1970-80’s.
local The success of the project is
developers and architecture attributable to the architect-
firms, partly due to the Via Verde is a symbol of the developer vision of addressing
challenges of working with the city’s efforts to revitalize the urban housing needs. Via Verde
city's convoluted departments area. NYC Housing Preservation serves as an example to
and their approval processes. In and Development (HPD) being demonstrate that affordable
addition to this, the perceived the lead public agency, was housing can be sustainable, cost
notion of affordable housing closely involved in rezoning the effective and creative.
developments having a limited site from manufacturing to
budget and constrainedresidential.
creativity added to the
resistance. HPD, in partnership with the
NYC Chapter of American
New York City Mayor Michael Institute of Architects (AIA)
Bloomberg’s ‘New Housing sponsored the New Housing
Marketplace Plan’ was a multi New York Legacy Competition
billion dollar initiative to finance which the project is born out of.

Via Verde 1
 7

sketchy plan
6

UPPER 84
MANHATTAN 5
3
MELROSE
2
4 VIA VERDE
S O U T H1 B R O N X

HUNTS POINT
HARLEM 3
2
87 MOTT HAVEN 278
1

PORT MORRIS
M A N H A T T A N
CONTEXT–THEBRONX
The Bronx, one of New York and government agencies. The The South Bronx; Melrose in
City’s five boroughs, located Department of City Planning particular, is one of the highly
north-east of Manhattan, went (DCP), Housing Preservation transformed areas under the
through a period of decline and and Development (HPD), Parks Bloomberg administration’s
disinvestment that not only saw & Recreation (DPR), Small novel initiative of the New
a serious dip in living conditions, Business Services (SBS), Housing Marketplace Plan. The
but a flight of residents as well. Department of Transportation supply pipeline indicates the
Neglect manifested itself into (DOT), and the NYC Economic potential and increasing strength
widespread fires that created Development Corporation of the South Bronx market.
further urban blight, leaving (NYCEDC) to name few of
many, are committed to AFFORDABLE PIPELINE
entire blocks vacant or in near
1 La Central
ruin. improving quality of life and
2 530 Exterior Street
creating new opportunities for
3 2956 Park Avenue
In the 1970’s, years of neglect current and future residents.
4 491 Gerard Avenue
and crime, coupled with a major
5 111 East 172nd Street
public health disaster had taken The Bronx still has the lowest
6 571 East 167th Street
a toll on the South Bronx; and rate of homeownership of all the
Melrose neighborhood in five boroughs. Stigmas of the
past do exist, but the public is MARKET RATE PIPELINE
particular.
1 101 Lincoln Avenue
learning a new story of the
2 198 East 135th Street
Today, the neighborhood is Bronx, one that anticipates
3 2401 3rd Avenue
enjoying a renaissance. South growth in the coming years.
4 180 East 156th Street
Bronx is reviving as an area with
5 707 Concourse Village W
safe, vibrant neighborhoods and MARKETANALYSIS
6 329 East 132nd Street
a growing economy. New Over the last decade, a
7 Carroll Place Apartments
housing, green grass, playing significant number of affordable
8 702 Grand Concourse
fields, and an active retail housing units have been
corridor characterize a constructed in and around Developers of Via Verde did not
revitalized neighborhood. Melrose – including some LEED conduct a formal market study to
certified projects – resulting in evaluate market demand as it is
Guiding this change are an increase of almost 4,000 born out of a competition and
grassroots efforts & partnerships units, mostly on properties that was implemented due to its
between several community the city took over through tax outstanding design features.
stakeholders, elected officials, defaults in the 1970’s and 80’s. Interestingly, the demand for

Via Verde 2
rental and co-op units surpassed diverse, thanks to public-private amenities and an easy access
the developers’ expectations. partnerships that are developing to all parts of the city.
innovative affordable housing
In a market that was once projects like Via Verde - The ‘The New Housing New York
considered risky to invest in, Greenway Legacy Project and Via Verde
Phipps and Rose emerged as represents architects re-
pioneers due to a vision of THE SITE engaging in the design of
setting a new standard for Located 6.5 miles north east of affordable housing, the best
affordability, sustainability, Manhattan across the Harlem practices for environmentally
design excellence and ability to River, the development is friendly design as well as the
be replicated. connected to the island through wider concept of sustainability
bridges and subway lines. through community meetings
An engaged participant in the The site is one block away from where stakeholder voices were
revitalization of the Melrose 3rd Avenue, a major retail heard and locally-driven
neighborhood, the underlying corridor, and 3 blocks from the planning efforts were used as a
goal of Via Verde is to serve as #2 and #5 trains at 3rd Avenue model’
a model for the next generation and 149th Street with express
of green affordable housing access to Manhattan. Numerous SHAUN DONOVAN
development. buses run along 3rd avenue and HUD Secretary
149th Street. Having 3 public
The neighborhoods in the South schools, the Yankee Stadium
Bronx are becoming more and the Bronx Courthouse within
Buildings and rooftops offer expansive
environmentally sustainable, the immediate vicinity, Via
views of permanent open space to the
transit-oriented & economically Verde’s residents enjoy various south of the site.

2
5

2 2
5 5

Via Verde 3
DEVELOPMENTTEAM involvement in affordable “The change that has swept
Via Verde is a complete and housing as “the oldest and through the South Bronx in the
perfect alliance between client, largest not-for-profit developer, last decade challenges the very
design and engineering owner, and manager of notions of what is and what isn't
disciplines, political context, and affordable housing in New York possible in urban revival. An
housing delivery disciplines, all City.” investment in high quality
united to make a difference in affordable housing - made
the delivery of market rate and Jonathan Rose had earlier possible by partnerships like the
affordable in the Melrose, South relationship with Dattner one behind Via Verde – has
Bronx. Architects and they joined been the catalyst”
hands with Grimshaw Mayor Bloomberg
Via Verde is the product of a Architects because of their
venture between the Jonathan reputation for innovative green PLANNIING &ENTITLEMENTISSUES
Rose Companies, a for-profit design in Europe. Lee
The long, narrow, triangular
development company, and Weintraub Landscape
site was difficult to develop,
Phipps Houses, a 100-year old Architecture was added to the
design team because of the not only because of its shape,
non-profit housing developer.
centrality of open space design but because it required
These firms responded to a
to the project. environmental remediation
design competition for the site
that was sponsored by New and special exceptions to the
York City Department of NYC Department of Housing, city’s usual requirements for
Housing Preservation and Preservation & Development approvals. The unusual shape
Development (NYC HPD), and (HPD) was the lead public of the site required zoning
American Institute of Architects agency in the development of exceptions, a major one being
New York (AIA NY), and had Via Verde. HPD sold the land to parking.
support from political leaders in the developer for $1 in order to
Bronx as well as the highest finance the affordable Normally, on-site parking is
development. required for a residential
levels of New York City’s
development, but the site was
administration.
A key innovation was the too small for the amount of
Jonathan Rose Companies was creation of the Joint Review space usually needed to
founded with the thought of Committee (JRC) which was accommodate required
merging green and affordable aimed at easing the process by parking. The development
design. They describe their which the developers would team successfully argued that
mission as one of leading work with city agencies. The the building is well served by
“transformative change by JRC was made up of transit. In addition, a large
creating green urban solutions developers, representatives of under- used parking garage is
as replicable models of the Competition Steering
located across the street from
environmentally, socially and Committee, city agencies like
the site. Ultimately, the plan
economically responsible plans, HPD, designers and the
communities, buildings and Department of Buildings in order was allowed to proceed
investments.” Jonathan Rose for the variances, approvals, and without on-site parking.
Companies made alliance with interpretations to be reviewed The South Bronx has some of
Phipps Houses as a partner in and acted upon quickly. the highest childhood asthma
the development of the proposal rates in the United States, and
for the competition because of This task force was important the community looked to Via
the respect and experience the because many of the project’s Verde for some solutions.
organization engenders from design features, would not have
decades of contribution and met standard city requirements.

Via Verde 4
Design Concept
The primary concept compares
the building to a tendril of a
living plant winding around and
climbing upwards from the street
towards the sun. The winning
Rose-Phipps concept resonated
with the jury and was largely
maintained throughout the
development of the design and
construction of the project. It is
translated into a series of
connected structures that wind
around a central courtyard and
stepp up from low- through mid-
rise to high- rise buildings, with
each step providing open space Translating the concept into green roofs stepping up from the ground level to
for a green roof. the high rise tower, creating a green walkway for all residents

BIRTH OF VIA VERDE

In 2004, NYC council, American The RFQ was unusually flexible The Bronx Community Board
Institute of Architects (AIA NY) and non-prescriptive in order to encouraged local residents to
and City University of New York encourage creative ideas. voice their opinions on the
(CUNY) sponsored the first New changes they hoped to see in an
Housing New York Design A site in Melrose, Bronx was upcoming neighborhood.
Ideas Competition, intended to made available by NYCHPD to Ownership options for young
raise affordable housing design the five finalists in order to make people achieving success and a
ideas for three sites in New York the process real and meaningful. desire to make units available
City. Three winners were The site was challenging in for very low income persons
selected for each site based on nature due to its narrow were of common concern.
– Innovation, Sustainability, triangular shape and its past use
Quality, Economic Efficiency, as a gas station and The jury, made up of architects,
Transferability, Coherence and manufacturing foundry. city officials and social scientists
Vitality. discussed parameters such as
The aim of this competition was density, aesthetics, urban
In order to respond to the not only to develop a design context and community. The
heightened interest in the intended to be built, but to raise review process ultimately led to
affordable housing, a New a potential concept to change the selection of the winning
Housing New York (NHNY) the perception of affordable Architect/ Developer team of
Steering committee was formed housing in the eyes of a Rose-Phipps-Dattner- Grimshaw
in 2005, with a purpose to carry common man the NYCHPD. The as the winning entry.
forward ideas from the 2004 committee hoped that the
competition and implement winning project would serve as a
affordable housing development responsible model with a level of
plans. 32 teams responded to a design sophistication that could
Request for Qualification (RFQ) positively guide the future of
issued in spring 2006. social housing.

Via Verde 5
Site Planning

FEATURES
The design primarily creates a oriented towards the south gives community spaces and a fitness
balance between increasing the development the advantage center.
density of the urban of maximizing solar gain and the
neighborhood with 400 residents capturing views offered by the The cascading rooftops, the
occupying 1.5 acres and open space adjacent to the project’s most dominant feature
creating a variety of outdoor property – a city owned ball steps up from a ground level
spaces for recreational and field. courtyard with an amphitheater
social activity. The site provides designed for play and social
an urban farming experience The mix of rental and owned gatherings. It forms the
and spacious residential units units is seamless. They are organizing element of the
with balconies, thus achieving physically connected to all development with ground-level
the aim of integrating nature and amenities, have a common courtyard at the heart of the
the city. The massing is such building entrance and are project.
that the development responds managed by the same security
to the shape of the site and its staff. The entry is placed at the Via Verde represents a unique
surroundings. center of the building along program in the sense that it
Brook Avenue serving both combines four distinct uses i.e.
The development makes most owners and renters. The project residential, green roofs,
of the narrow, triangular shaped thus benefits from economies of Montefiore medical center and
site by providing a range of scale in development and community facilities. Via Verde
residential unit types – Single operation costs. The ground combines amenities and retail
level apartments in a 20-story floor features retail, a community relevant to a diverse community.
tower, two-level duplex units in a health center, and live-work The site program thus
6-13 story mid-rise component, units creating a lively street encourages interaction between
and two-level townhouses and presence. Above the main residents of low-income rental
single-level apartments in a 2-4 entrance overlooking the street and middle-income co-ops.
story low-rise component. Being and courtyard are the resident

Via Verde 6
UNITDESIGN
The shallow depth of the site
allowed for only a 48’ deep span
in the mid-rise section of the
building versus the typical 60’
configuration required to provide
a doubly-loaded corridor. To
make efficient use of this
constraint, the mid-rise section
features innovative, interlocking
duplex units. The ground floor
being 25’ incorporates an
internal staircase eliminating the
need of corridors on alternate
floors. It leads to a 12.5’ upper
floor with bedrooms on either
side. The benefit is that the
bedroom area spans the width
of the structure, allowing
residents to open windows and
use cross breezes for ventilation
and natural cooling and
reducing reliance on air
conditioning. The Brook Avenue Metal screens hold the Via Verde’s stepped form,
facade of the project is equipped temperature of the raising sun at façade ad interior layouts have
with a high performance rain bay during the summer, while led numerous accolades
screen of composite wood, PV panels on the roof soak up including ‘Best New York
cement and metal panels. the light. Architecture 2011’.

Open Living/ Dining/ Kitchen with internal staircase panoramic

Via Verde 7
Healthy Living Children's Garden Amphitheatre 4th Floor
Fruit Tree Orchard
Backyards

20th Floor 10-18th Floor 7th Floor 5th Floor

Community Room & Terrace Extensive Green Roofs Fitness Center & Garden Vegetable Garden

The Via Verde goes beyond conditioned environment. The COMMUNITY IMPACT
traditional green features to Montefiore Medical Center is The most significant community
tackling community health also integral to to the buildings activity at Via Verde is
issues at large. Via Verde is one holistic focus on health. A gardening. Grow NYC, an
of the first buildings in New York signature component of the organization that manages a
to heavily rely upon Active project, the green roofs provide series of farmer’s markets
Design Guidelines - A manual a walking concourse guiding throughout NYC managed the
of strategies for creating healthy residents from the ground level roof gardens initially, along with
buildings based on research and to the fitness center on the 7th providing horticulture classes to
best practices. Techniques floor. All staircases are residents. With time, a Resident
encouraging energy saving strategically located at Gardening Committee
mechanisms secured Via Verde distances closer than elevators, emerged in order to self-
LEED points for innovation. A designed with large windows manage and maximize the
’Living Green’ guide is given to and bright colors with potential of the roof gardens and
each resident to teach and motivational signage that reads forge a strong sense of
promote energy optimization ‘take the stairs, burn calories not community. Children are
and green, healthy living. electricity!’ to support increased educated about food production
levels of physical activity. and healthy alternatives. Today,
Through use of environment- residents are active participants
friendly materials such as non- of gardening and enjoy the
toxic paints, sealants and harvest. The rooftop run off
adhesives, the design aims to water provides opportunities for
created healthy interiors. active gardening and fruit and
Installing ceiling fans and vegetable cultivation. The storm
planning for cross ventilation water recycles alongside to
reduces the dependency of provide for on-site irrigation.
living in an artificially air

Via Verde 8
Sustainability
The project aimed at integrating A total of 288 panels are estimated Temperature Sensors ensure that
sustainability features with to save $12,000 annually as of heat is supplied to actual
design since its inception 2013. conditions and not preset timings.
through photovoltaic systems, Thus residents pay for their own
energy efficiency systems. The The neighborhood being severely electricity use and not for that
affected by asthma, relies on a supplied by a central system. An
green features proposed for an
Smoke-free Environment and improved ventilation system
affordable housing development minimizes the need to air-
good ventilation. The public spaces
is an impressive feature of the in the building employ active air conditioning, rather relying on
project. exchange systems. cross ventilation and ceiling fans.

Plagued by several
environmental constrains due to
its previous land use as a gas
station, the site contained high
concentrations of organic
solvents and petroleum-related
compounds. The extensive
Brownfield Remediation
strategy offered by the city
involved excavating and
disposing off soil, using a clean
fill and replenishing the ground
water level through oxidation.

The provision of Green Roof

tops additionally helped in
rooftop insulation, installation of
photovoltaic panels and an
abundance of plant life with
evergreen trees, orchards and
vegetable gardens.

Since Via Verde was able to

maximize its multiple stepped
roofs space, the mid-rise and
high-rise towers were able to
provide vertical and horizontal
surfaces for Photovoltaic
Panels. The stepped form
allowed for an innovative
installation system, where the
panels were hung at angles
optimal for electric power
generation accounting for 15-
20% of the total power needs.

Via Verde 9
Features 8
Mid-rise units consist of a mix of rental & co-op
apartments.

1 Community amphitheater and courtyard All stairs are designed with bright colors and large
9 windows as part of the NYC Active Design
Low-rise and townhouse sections consist of co-op Guidelines.
2 apartments and duplexes; some with private backyards
Photovoltaic panels (66kW) are incorporated into
Via-Verde’s terraced roofs, landscaped with fruit trees, 10 the design of the south facing facades.
3 gardening plots and extensive green roofs provide a
walking concourse. 11 20 story tower consists of rental units.
Communal gardening beds on the 5th floor garden roof Reserved penthouse floor for a common room
4 allow residents to grow their own fruits and Vegetables 12 and roof terrace open to all residents.

Many Apartments feature balconies and dual exposure

5 to increase cross-ventilation 12
A fitness center on 7th floor sits adjacent to a green
6 roof, overlooking the landscaped courtyard

Innovative, pre-fabricated, rain-screen façade system

7 features fiber-cement, aluminum and wood panels. 10
11

6
Green Feature : minimized need 9 The change that has swept

Units
for air-conditioning by providing
improved ventilation, through the
5 use of cross ventilation, higher than
The winning Rose/Phipps normal ceiling heights8and ceiling
fans.
7
Most units have at least two
exposures for natural ventilation;
none contain air-conditioning units, 3
per specifications in the RFP.
1

The entry was placed at the

midpoint in the building along
Brook Avenue where it would serve
both owners and renters. It leads to 2
residential lobbies and townhouse
lobbies that are around the
courtyard. The ground floor
features retail, a community health
center, and live-work units creating
a lively street presence. Above the
main entrance overlooking the
street and courtyard are the
resident community spaces and a
fitness center.
4

Via Verde 10
Financing
The success of Via Verde lies in RENTAL FINANCING
the innovation of its design and Rental units made use of Low using Housing Development
financing. The product of an Income Housing Tax Credits Corporation Taxable Bonds
extraordinary partnership (LIHTCs) through New York against JP Morgan Chase - line
between public and private State Homes and Community of credit. During the permanent
agencies, the development is Renewal (NYS HCR) as well as phase, LIHTC (tax credits)
based upon a multi-layer Subsidies from Housing representing about $32million
financing model including Preservation and Development (or half the cost of rental
grants, tax-credits, loans (NYCHPD),Housing component) were used to pay
(subsidies and bonds), equities Development Corporation down the HDC First Mortgage
and other sources. Funds came (NYCHDC), Federal Home Loan and deferred developer fee.
from a broad source of public Bank Affordable Housing
and private sources. The size Program (FHLBNY AHP), and JFP Rose and Phipps Houses
and arrangement of such a New York State Energy collectively provided $1,000,000
funding was possible because of Research and Development as equity and $4,763,651 as
a unique blend of rental and co- Authority (NYSERDA). deferred developer fee as equal
op units in one single project. partners of rental financing.
However, this also increased the Approximately 50% of the
complexity due to the number of construction financing of the
entities involved. rental development was sourced

The $98.8 million project was RENTAL UNITS - USES Amount

financed as two-thirds rental Hard Cost $49,364,599
(151 units at an approximate Acquisition Cost $177,880
cost of $67 million) and one-third Soft cost $12,110,508
owned (71 units at an Development Fee $5,200,000
approximate cost of $32 million). Total Rental Units $66,852,987
The 1.5 acre site was conveyed
to the developer by Housing CO-OP UNITS - USES Amount
Preservation & Development Hard Cost $24,261,401
(HPD) for $1 to support the Acquisition Cost $48,873
revitalization of South Bronx and Soft cost $6,152,822
aid the affordability of the Development Fee $1,500,000
project. Total Co-op Units $31,963,096
CO-OP FINANCING
The Co-op units attracted 67.5% with JP Morgan bank line of and sale of co-op units. During
more equity from both the credit. The 71 co-op units also the permanent phase, the sales
developers combined, and $1.5 received subsidies from NYC proceeds for the co-op unit were
million as deferred developer HDC, NYC HPD, the Bronx used to pay-off HDC 1A Taxable
fees. The higher equity implies Borough President’s bond & to repay bridge finance
higher gains on a pro-rata basis, Discretionary fund, New York loans & deferred developer fees.
when interest in property or the State Affordable Housing The project also received $2.68
company is sold. One-fourth of Corporation (AHC) and million from New York State
total cost of construction was NYSERDA. Bridge funding from Department of Environmental
sourced using a combination of Calvert Foundation was used to Conservation as Brown Field
HDC 1A & 1B taxable bonds fill the gap between construction Cleanup Program Equity.

2 Via VerdeCase Study 11

RENTAL UNITS – FINANCING SOURCES
Debt Construction Permanent
HDC First Mortgage* $33,690,000 $4,370,000
HDC Second Mortgage (Subsidy) (1% interest only) $12,835,000 $12,835,000
HPD – MIRP - Capital Subsidy (1% interest only) $9,767,756 $9,767,756
HPD – MIRP - HOME $2,516,580 $2,516,580
Federal Home Loan Bank NY Affordable Housing Program (HSBC Member Bank) $1,900,000 $1,900,000
Phipps Loan (NYSERDA MPP) $380,000 $380,000

Equity
Federal/State LIHTC Equity** - $32,083,651
Developer Equity/ Remediation Sources (TBD) $1,000,000 $1,000,000
Deferred Developer Fee $4,763,651 $2,000,000

TOTAL $66,852,987 $66,852,987

CO-OP UNITS – FINANCING SOURCES

Debt Construction Permanent
HDC 1B Taxable HDC Bonds w/LOC * $1,210,000 $1,210,000
HDC 1A Taxable HDC Bond w/LOC* $6,230,000 -
HDC Second Mortgage (i.e. HDC Subsidy) $4,615,000 $4,615,000
HPD Capital Subsidy $9,093,470 $9,093,470
HPD HOME Funds $712,630 $712,630
NYC Resolution a Bronx Borough President/City Council $1,500,000 $1,500,000
NYS Affordable Housing Corp. $2,117,500 $2,117,500

Equity
NYSERDA $187,331 $187,331
Bridge Financing (Calvert Foundation)
Home for New Yorkers - Subordinate Financing $2,500,000
Developer Loan $550,589
Developer Dev Loan Interest (Placeholder) $71,576
Co-Op Sales Proceeds (Equity)
Sales Proceeds - Tier 1 - $7,729,058
Sales Proceeds - Tier 2 - $3,123,107
Developer Equity $1,675,000 $1,675,000
Deferred Developer Fees $1,500,000 -

TOTAL $31,963,096 $31,963,096

* Taxable Bonds, floated during construction with a JP Morgan Chase line of credit, at 7.7% interest rate
** Federal LIHTC @ $0.82, state LIHTC @ $0.49. Equity investment from Chase via Richman

2 Via VerdeCase Study 12

JP MORGAN CHASE
A large portion of financing Chase decided to purchase the Subsidy received for an area
which was supported by Tax tax credits against equity in the ranging from 872 to 1152 sq.ft.
Credits were purchased by project . It also helps Chase is 64.5%. The table exemplifies
Chase Bank at $0.82 for Federal bank to fulfill their CRA the closing cost estimate of the
LIHTC & state LIHTC at $0.49. requirement; a win-win deal for two-bedroom co-op unit. The
Chase bank is one of the largest both the developers and the total estimated cash needed (as
purchaser of tax credits. Though bank. initial payment) to buy the two-
the risk was higher, considering bedroom co-op unit is 3.5% of
the strength & reputation of the IMPACT OF SUBSIDY its total cost of development.
players – including JFP Rose Condo apartments received a
specializing in green structures substantial amount of subsidy, PERFORMANCE-PROFORMA
and Phipps Houses with over ranging from 58% to 65% of the The Return on Equity for
100 years of experience in cost of development of an developers which inclusive of
affordable housing, and a strong individual dwelling unit. the developer fees is 2.34. This
support from city stakeholders. is reflective of a huge profit
margin for the developers. The
ratio clearly denotes
CLOSING COST ESTIMATE:-2 BEDROOM
a substantial amount of profit
Cost of Development $411,418 margin earned by the developer
Less :Subsidy $265,386 in the form of fees (i.e. 234%).
While the developer’s equity
Net Price $146,032 goes permanent (i.e. the equity
Down Payment (5%) $7302 is still in the project), the
Loan Amount $1387,31 developer’s fees helps them to
recover the amount equal to
Interest Rate 4.50% their equity and gives additional
Term 30 years profits amounting to 134% of the
equity.
Principle $703
Common Charges $880 The fact that the project started
Total Estimated Monthly Cost $1,583 its construction in 2010 and the
sales and leasing strategy
Application Fees $395 achieved approximately 98%
Processing & Underwriting Fee $595 occupancy by 2012 indicates a
strong profitability for the
Tax Service Fee $69
developer. In a short span of
NYS Transfer Tax $1646 three years the developer has
Sponsor Legal fees $1500 received 2.34 times the equity
Flood Certification Fee $14 invested (in the form of
Developer Fees).
Title Closer Fee/Pick Up Fee NY $150
Interest – for 15 days $257
Working Capital $880
Attorney, Title Insurance, Recording Fee $1950
Estimated Closing Fees $7,456
$6,263,651
Total Estimated Cash Needed 14,757
Total Profit (As Developer Fees)

2 Via VerdeCase Study 13

AFFORDABILITY, UNITS & COSTS
Affordable Rental Units

No. of units Income Restrictions Income Monthly Rate

(Family of Four) Studio 1-Bedroom 2-Bedroom 3-Bedroom

17 <30% AMI $23,040 - $349 $423 $489
13 <40% AMI $30,720 $461 $493 $596 $688
120 <60% AMI $46,080 $731 $781 $942 $1087

Co-op Units

No. of units Income Restrictions Income Purchase Price

(Family of Four) Studio 1-Bedroom 2-Bedroom 3-Bedroom
5 <80% AMI $61,450 - $134,585
39 <150% AMI $115,200 - $146,032
26 <175% AMI $134,400 - $192,750

The 151 rental units are duplex. The prices may of mortgage, 5%downpayment
targeted at people with income represent the market purchase and maintenance fee. Co-op
less than 60% of Average price in Melrose, Bronx, but they ownership is an important
Median income (AMI), whereas cover less than 50% of the cost component to ensure control
the 71 co-op units are dedicated of development. over long term affordability.
to people with income between
80% to 175% of AMI. EXIT STRATEGY Financial Exit
Sales and Leasing A regulatory agreement along
Seventeen of the rental units
Although, finding prospective with 30 year mortgages from
are reserved for the people with
customers may not be difficult HPD & HDC ensure long term
lowest level of income having
and the affordable housing affordability. Co-op owners may
income less than 30% of AMI.
demand is self-driven in the sell at any time, but only to
The type of funding used for the
given market, the process to income qualified buyers. The
project makes it mandatory to
approve a new tenant is time resale restrictions exist because
accept people with income
consuming. of the range of subsidies
under 30% of median income.
provided by HDC and HPD. Any
The lowest monthly rent is $349
A lottery system was sale during the term of
for the 1 Bedroom & the highest
implemented, that is currently affordability requires a
being $1087 for a 3 bedroom
managed by Phipps Houses, for reimbursement of the subsidy.
unit. The rental rates can be
selecting buyers of the co-op For years 1-3, 100% of profits
adjusted to market value only
units. Units of all types were go back to HPD/HDC and for
after 30 years (i.e. after
absorbed within a short period. years 4-30, 50% of profits go
completing the term of
The rental units were leased back to HPD/HDC
affordability of 30 years).
immediately, and received about
Subsidies for co-op units 7500 applications that had to be For the developers, the financial
ranging from 58% to 65% interviewed to identify the exit from co-ops was executed
allowed them to be sold at a appropriate mix of 151 units. by paying-off the debt through
starting price of $134,585 for a sales proceeds, whereas the
1 Bedroom unit going upto The average monthly cost for rental component was paid-off
$192,750 for a 3 bedroom co-op owners is $1600, inclusive using tax credits.

2 Via VerdeCase Study 14

OPERATIONAL ISSUES AWARDS + REVIEWS
Phipps houses is the one who 2015 Civic Trust Award
manages and operates the 2014 HCR Design Award - Outstanding Family Residence
property. The 100 year old 2013 American Council of Engineering Companies (ACEC) New York Diamond Award
experienced not-for-profit 2013 Society of American Registered Architects: Sustainability Award 2013 Residential Architecture
Award
organization is efficient in
2013 AIA Housing Awards
managing the property and no 2013 AIA / HUD Secretary Awards
operational issues are reported. 2013 Rudy Bruner Award for Excellence - Silver Medalist
In order to help residents to 2013 RIBA International Awards
understand the building and its 2013 AIA New York State Award of Excellence
2013 American Society of Landscape Architecture Honor Award
environmentally friendly
2013 Boston Society of Architects John M. Clancy Award
functions, and annual letter is 2012 ABC Excellence Construction Award
distributed. This also helps to 2012 Andew J. Thomas Housing Awards
manage effective 2012 Multi-Housing News Excellence Awards - Best New Affordable Housing Development
communication between the 2012 SMPS-NY Industry Awards
2012 Jack Kemp Workforce Housing Models of Excellence Award
tenants and management. When
dispute arise between a tenant
and management, they are
resolved quickly because
residents want to be able to
stay. Residents can raise any
issues or concerns to the
concierge desk which is staff
24x7. Via Verde management
is committed to changing
people’s expectations about
affordable housing. There are no
major operational issues found
with Via Verde.

KEY CHALLENGES
Some of the challenges
regarding the site were
brownfield remediation and the
significant cost involved for the
process of improving the quality
of land and making it fit for
construction. Thereafter, the
narrow triangular shape was
tackled by the architects in an
exemplary an efficient manner.

The social interaction between

renters and owners is critical,
and is handled by engaging both
groups in shared community
activities, thus fostering a sense
of responsibility towards
together living in Via Verde.

Via Verde 15
Impact
The first and foremost impact Committee, the JRC has support and character to the
that the development has had is displayed a unique approach of external community by
that of serving as a model for tackling an affordable housing generating foot traffic, offering
sustainable and affordable development project in New spectacular views, activating
housing projects. Providing a York City. Via Verde is an Brook Avenue and offering
fully articulated set of important development in business to the neighborhood
sustainable features and Melrose. While it is a through the Montefiore clinic
emphasizing on green design community in itself, it extends and retail spaces.
unlike most affordable housing
projects has set a new standard.

Access to open spaces and

plant life as well as opportunities
for walking and physical activity
have proven to be promising
indicators of the extent to which
green housing can improve the
health of residents.

Inspired by the success of the

development, HPD now requires
all new construction to meet
Enterprise Green Community
Standards, and demonstrate at
least 15% share of the energy
efficiency that was achieved by
Via Verde. Striking a balance
between a high density mixed-
income, sustainable design and
and open spaces, Via Verde has
tapped into some of the best
practices that HPD now wants
to promote within the upcoming
developments.

Via Verde also served as an

example for some of the
regulatory reforms such as the
New York City Green Zoning
rules.

The Joint Review Committee

(JRC) has addressed some
critical development issues
saving on time and money.
Although not an institutionalized

Via Verde 16
REFERENCES

1. Archdaily – Via Verde

2. AIANY COTE Awards
3. Rudy Bruner Awards
4. Rose Companies
5. ULI Case Study – Via Verde
6. Phipps Houses
7. South Bronx Initiative 2008
8. Developer’s Press Kit
9. Interviews with Rose Companies & Phipps Houses

Via Verde 17