Governor Kathy Hochul and Mayor Eric Adams today announced the groundbreaking of Logan Fountain, a mixed-use project developed under the 2016 East New York rezoning, that will transform a defunct gas station into affordable housing units, transitional housing for homeless families, and new retail space.
"Across New York, we are making targeted investments that increase affordable housing opportunities and provide supportive and transitional homes for families that need them most," Governor Hochul said. "Housing and economic development go hand-in-hand, and Logan Fountain is a perfect example of how Mayor Adams and I are working together to bring new homes, new services, and new business to neighborhoods in every borough."
New York City Mayor Adams said, "Projects like Logan Fountain are critical to revitalizing East New York and communities across the city. This project will transform a defunct gas station, offering nothing to the community, into much-needed permanently affordable housing, safe beds for our neighbors experiencing homelessness, and community-serving retail space — all with easy access to public transportation. I'm excited to see this important project moving forward and look forward to celebrating with the New Yorkers who will call it home."
The project complements Governor Hochul's sweeping plans to make housing more affordable, equitable, and stable. In the FY 2023 State Budget, the Governor introduced and successfully secured a $25 billion, five-year, comprehensive housing plan that will increase housing supply by creating or preserving 100,000 affordable homes across New York including 10,000 with support services for vulnerable populations, plus the electrification of an additional 50,000 homes.
Located at 265 Logan Street, Logan Fountain was designed as a hybrid model that will include an affordable and supportive housing component and a family shelter in a 13-story building. The eastern wing will consist of 69 affordable homes for low-income families earning between 50 and 70 percent of Area Median Income and 105 homes for formerly homeless individuals. The western wing will consist of 169 homes for homeless families served by the New York City Department of Homeless Services. The building will also include approximately 7,677 square feet of ground-floor retail space along Atlantic Avenue. The project was designed by MHG Architects and will be built by Broadway Builders, an affiliate of The Hudson Companies.
Logan Fountain will offer an array of amenities to its residents. On the affordable and supportive housing side, amenities will include a fitness room, landscaped common courtyard with a children's play area, multiple terraces with a garden area, bicycle storage rooms, and laundry rooms. On the transitional housing side, families will have access to outdoor and indoor childcare space, bicycle storage, and laundry room.
Jericho Project, a venerable non-profit provider for the homeless, will introduce a host of on-site supportive services and programming for formerly homeless families in the affordable housing residences. In addition, HELP USA, a nationally-known social service provider for the homeless, will operate and provide client care coordination and services for residents in the shelter.
Logan Fountain is conveniently located two blocks from the Norwood Avenue J train subway station and a short walk from the Euclid Avenue A train subway station.
Construction began in August and is expected to be complete in late 2024. The development team includes The Hudson Companies, The Jericho Project, and HELP USA.
Construction financing for Logan Fountain's affordable and supportive housing component totaled $117 million, including tax-exempt bonds and federal Low Income Housing Tax Credits from New York State Homes and Community Renewal, along with Citi, which provided the construction period Letter of Credit, a subsidy from the New York City Department of Housing Preservation and Development, funding from former Council Member Rafael Espinal, and tax credit equity with Hudson Housing Capital as syndicator and JP Morgan Chase as an investor. A loan from Citi provided financing of $97 million for the shelter portion through a contract with the New York City Department of Homeless Services. Citi will manage the construction disbursement and monitoring for the entire project.
The project is a key component of the 2016 East New York rezoning, which will bring $16.7 million of capital investments to the neighborhood. In developing the investment strategy, the city engaged with the community in 2014 and created the East New York Community Plan to prioritize the need for new infrastructure, parks, community facilities, affordable housing, and support for small businesses.
New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, "Developments like Logan Fountain are addressing historic economic disadvantages in Central Brooklyn's neighborhoods and the growing need for more quality affordable housing in the city and across the state. We are thrilled to work alongside our counterparts at HPD, as well as our development partners, to provide 174 permanent and supportive homes for families and for those who have struggled with housing insecurity. The inclusion of a new DHS facility on the property will help families experiencing homelessness gain stability and transition out of the shelter as quickly as possible. Under Governor Hochul's leadership, we will continue investing in Brooklyn with thoughtful, healthy, and sustainable developments like this one."
New York City Councilmember Sandy Nurse said, "Nearly 60% of people in Community Board 5 are rent burdened. Eviction filings are skyrocketing and supportive housing lease-ups are stagnating. When complete, Logan Fountain will address these critical needs by bringing 174 units of family sized affordable housing and 169 units of transitional housing to our district. Included in this project is 105 units of supportive housing, which will further help house or homeless neighbors. Combining sustainable design, local hiring, and MWBE contracting, Logan Fountain is a welcome addition to District 37."
New York City Department of Housing Preservation & Development Commissioner Adolfo Carrión Jr. said, "Logan Fountain is a great example of how the City and State continue to work together to house the most vulnerable New Yorkers. This development brings not only 174 permanent affordable and supportive homes for formerly homeless and low-income families, but it also includes 169 beds in a new family shelter. We're proud to work with Hudson Companies, Jericho Project, HELP USA .and local elected officials to bring more affordable homes to East New York."
New York City Department of Social Services Commissioner Gary P. Jenkins said, "We are thrilled to see construction beginning on the Logan Fountain Mixed-Use Affordable Housing Development which, upon completion, will provide hundreds of vulnerable individuals and families with the transitional and affordable housing they need to attain stability and security. Projects like this are vital to our continued efforts to efficiently connect New Yorkers in need to the high-quality housing and shelter opportunities they need and deserve. We are grateful for our public and private partners for getting this incredible project underway and we look forward to working together toward our shared goal of making this city more equitable and affordable for all."
Dan Garodnick, Chair of the City Planning Commission and Director of the Department of City Planning, said, "These new income-restricted and supportive homes near the subway and City Line Park further prove that the East New York Neighborhood Plan continues to deliver real results. With Mayor Adams' City of Yes initiatives, we are going to build on this success, and continue building a brighter future for all."
Sarah Pizer, Development Director, The Hudson Companies, said, "Today's groundbreaking is a true testament to our longstanding commitment to building affordable housing for New Yorkers. We are proud to work with HELP USA and The Jericho Project, which will bring critical social services to families in the transitional housing component. We also want to thank our city and state partners for their ongoing support and collaboration to bring this innovative development to fruition."
Tori Lyon, CEO, Jericho Project, said, "Jericho Project is pleased to support Logan Fountain, whose innovative hybrid affordable and supportive housing will provide a foundation of security for families and adults. We are so proud to be bringing to Brooklyn the comprehensive services that we know are invaluable to individuals as they build new lives for themselves and their families. We applaud Mayor Eric Adams, The Hudson Companies, HELP USA, the New York City Department of Housing Preservation and Development, the New York City Department of Homeless Services, and the New York State Homes and Community Renewal for their leadership in this important project."
Tom Hameline, PhD., CEO & President, HELP USA said, "East New York is where HELP USA began its work, and it is where we continue to invest in building better lives for those most in need. Logan Fountain is a model for public-private partnerships, and this project demonstrates that when we commit to collaboration, we can affect real solutions to our City's housing crisis. Thank you to Mayor Adams, The Hudson Companies, Jericho Project, and all the stakeholders for championing this benchmark development."