Tax credit that is.
The Full Story below relates the story of two solid organizations doing some development work for a good cause. A hundred+ year old and currently vacant school building in East Harlem is scheduled to be turned into 10kSF of community arts space as well as 90-100 affordable housing units by Artspace and El Barrio’s Operation Fightback.
Reuse of abandoned buildings... redevelopment through repurposing space... supporting the arts within a community- three things that we are fully in support of at Cubed Advisory.
As with all real estate stories, the real magic is in the math.
Based on the stated $50M budget, the project is likely coming in at a weighted $/unit of $440k and very reasonable $500-550/SF built. All good numbers, but tough to make work with the affordable housing rents of $500-$1100/mo. It becomes much more workable by the fact that the project is going to get $24M in low income tax credits as well as historic structure tax credits and arts credits. There is no word on what the city will be transferring the building to the organizations for, but one can be sure it would count as a credit.
So- who is now thinking they want to open a non-profit?
Labels: affordable housing, Artspace, East Harlem, El Barrio's Operation Fightback, redevelopment, tax credits