Capital One Bank to Provide Funding for New
Affordable Housing Construction in New York
City
Bank Commits to $39.5 Million in Financing to Provide Housing for Hundreds of Low-to-Moderate Income
New Yorkers
September 08, 2010 08:03 AM Eastern Daylight Time
NEW YORK--(EON: Enhanced Online News)--Capital One Bank today announced it has committed to provide a
$41 million financing package toward the construction of two affordable housing buildings to be located at St. Ann’s
Terrace in the Bronx. The development will add 161 affordable housing units for New York City’s low-to-moderate
income residents.
A joint venture between the Jackson Development Group and Joy Construction Corporation, the buildings will be
constructed on a nearly 40,000-square-feet vacant site located on the east side of Eagle Avenue, between East
156th and East 158th Streets in the Bronx. The 161 studio, one-bedroom, two-bedroom and three-bedroom units
will be leased to qualified tenants earning between 40 percent and 60 percent of the area median income. Upon
completion, the two buildings will have an above gross building area of approximately 164,000 square feet.
Occupancy is expected by spring 2012.
Capital One’s financing includes a $24.1 million construction period credit enhancement to the Jackson/Joy
development entity in the form of a stand-by letter of credit for tax-exempt, fixed-rate bonds issued by the New
York City Housing Development Corporation (HDC) under its Low-income Affordable Marketplace Program. An
additional $15.3 million will be invested through the purchase of 4 percent as-of-right Low Income Housing Tax
Credits generated by the development. The HDC and the NYC Department of Housing Preservation and
Development will subsidize the remainder of the capitalization with subordinate loans.
“Fostering the economic well-being of local communities and their residents is a vital part of our work at Capital One
Bank, and we are proud to help provide more affordable housing for hundreds of low- and