November 14, 2024
Governor Kathy Hochul and New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas today announced that construction has begun at La Olazul, a 115-unit affordable and supportive housing development in the Mount Hope neighborhood of The Bronx. The $81 million mixed-use project includes 69 supportive units and 8,500 square feet of commercial space on the ground floor. In the past five years, New York State Homes and Community Renewal has financed more than 14,000 affordable homes in The Bronx. La Olazul continues this effort and complements the Governor’s $25 billion five-year Housing Plan which is on track to create or preserve 100,000 affordable homes statewide.
“To address the housing crisis and ensure more people have the chance to live in stable, modern homes in thriving communities, we must continue to invest in developments like La Olazul,” Governor Kathy Hochul said. “This innovative development combines affordable housing with smart, sustainable design, support for those who need it, and commercial spaces that will bring value to the entire neighborhood.”
HCR Commissioner RuthAnne Visnauskas said, “Developments like La Olazul exemplify the State's dedication to providing supportive and affordable housing options and promoting sustainable development. This holistic project will give 115 households an affordable, energy-efficient home, provide important on-site services for vulnerable populations, and bring new commercial opportunities to the Mount Hope neighborhood. Thank you to our partners at Westhab and Vaya and to Governor Hochul for her continued investments across The Bronx.”
Apartment units at La Olazul will be reserved for households earning up to 60 percent of the Area Median Income. Supportive units will be reserved for formerly homeless households dealing with mental illness or substance use disorders in need of on-site support services.
La Olazul includes community space where residents can access onsite support services provided by Westhab. Additional amenities include a laundry room, outdoor terrace, arts and music space, recreation areas and free broadband internet.
The all-electric project was designed to meet Passive House Institute standards aimed at reducing energy consumption and lowering the building’s carbon footprint. Energy-efficiency measures include electric heat pumps, low-flow fixtures, efficient windows, ENERGY STAR (r) appliances and a green roof.
Developed by Vaya Development and Westhab, La Olazul is supported by HCR’s Federal Low Income Housing Tax Credit Program that generated approximately $35.1 million in equity, $14.9 million from its supportive Housing Opportunity Program and $8.3 million in permanent tax-exempt bonds. The New York City Department of Housing Preservation and Development provided a $11.5 loan through its Supportive Housing Loan program and a $1.15 million grant through its Future Housing Initiative program, a collaboration with the New York State Energy Research and Development Authority. Additionally, eight units are expected to receive rental assistance through Section 8 Project-based vouchers issued by HCR. Enterprise Housing Credit Investments invested $35.1 million in tax credit equity to support the development. TD Bank was the tax credit investor and provided credit enhancement for the tax-exempt bonds.
Senator Charles Schumer said, “Everyone deserves a safe and affordable place to call home. I’m proud that the federal Low-Income Housing Tax Credit that I worked hard to protect and expand has delivered $3.4 million to help build La Olazul in the Bronx—a new development for 115 affordable apartments with access to support services and free broadband internet. I applaud Governor Hochul’s efforts to create and preserve affordable homes across the state, and I will continue working to deliver the federal resources needed for more affordable homes in the Bronx.”
Doreen M. Harris, President and CEO, NYSERDA said, “Today, we make meaningful progress towards developing healthier, more efficient affordable housing for New Yorkers. Through successful private-public partnerships, all-electric new construction projects like La Olazul will allow more families to access and benefit from clean, modern living spaces throughout the state."
Bronx Borough President Vanessa Gibson said, “Today is more than a ribbon-cutting ceremony; it’s a powerful affirmation of what we, as a community, can accomplish when we come together with a common purpose. With 115 new units equipped with essential wraparound services, La Olazul stands as a promise of stability, dignity, and possibility for residents of the Mt. Hope community—a place they can proudly call home. Every person deserves the dignity of a place to call home. Today, we reaffirm our collective commitment to ensuring that everyone in our community has access to the support they need to thrive. I want to thank Vaya Development, Westhab, Inc, NYS Homes and Community Renewal and everyone else who played a role in bringing this project to fruition.”
State Senator Gustavo Rivera said, "This new development, La Olazul, will not only provide 115 affordable and supportive housing units for families and individuals, but will also offer a comprehensive approach to supporting our most vulnerable residents, including those experiencing homelessness and those facing mental health or substance use challenges. I look forward to seeing this project make a positive impact on my neighbors in the Mount Hope community here in the Bronx."
Assemblymember Landon Dais said, “We welcome WestHab’s commitment to the community and their promise to put extraordinary care and resources into wrap-around services to ensure that the project has a positive impact on the community as a whole. We will always welcome partnerships that heed the concerns of community stakeholders and add to the improvement of quality of life in our district.”
New York City Council Member Pierina Sanchez said, “As the housing crisis continues to affect communities across New York City, it is imperative to expand proven models for stabilizing communities. La Olazul will bring 115 much needed affordable and supportive units, including commercial space in a neighborhood that will benefit greatly from these amenities. This development helps to ensure more New Yorkers gain access to safe, affordable housing and vital resources, and builds a brighter future for The Bronx.
Westhab President & CEO Richard Nightingale said, "Through this initiative, we are set to introduce 115 units of critically needed housing to the heart of the South Bronx. Westhab is honored to collaborate with the team at Vaya Development and our government partners to make this state-of-the-art, eco-friendly, and affordable residence a reality. We are committed to combating the housing scarcity and crisis gripping NYC in the South Bronx and beyond."
Vaya Development Principal Melissa Bindra said, “La Olazul is an investment in long-term sustainability and impact that Vaya prides itself in creating. We are thrilled to have worked with our partners at Westhab, HCR, HPD, Enterprise, and TD Bank to bring this project to the community. The project brings high-quality housing and services at a time when they are most needed, it will be a shining example of the neighborhood's transformation, and we are proud to be a part of it.”
Baaba Halm, Senior Vice President of Programs of Enterprise Community Partners, said, “La Olazul is a shining example of a development that is delivering on a number of vital public needs, including 115 units of affordable and supportive housing, wraparound on-site services, and a commitment to resilient building standards. Enterprise is proud to be supporting this project through $35.1 million in tax credit equity. We congratulate Vaya Development, Westhab Inc., and all the other public and private stakeholders who have played a role in getting to today’s milestone.”
Governor Hochul’s Housing Agenda
Governor Hochul is committed to addressing New York’s housing crisis and making the State more affordable and more livable for all New Yorkers. As part of the FY25 Enacted Budget, the Governor secured a landmark agreement to increase New York’s housing supply through new tax incentives for Upstate communities, new incentives and relief from certain state-imposed restrictions to create more housing in New York City, a $500 million capital fund to build up to 15,000 new homes on state-owned property, an additional $600 million in funding to support a variety of housing developments statewide and new protections for renters and homeowners. In addition, as part of the FY23 Enacted Budget, the Governor announced a five-year, $25 billion Housing Plan to create or preserve 100,000 affordable homes statewide, including 10,000 with support services for vulnerable populations, plus the electrification of an additional 50,000 homes. More than 45,000 homes have been created or preserved to date.
The FY25 Enacted Budget also strengthened the Pro-Housing Community Program which the Governor launched in 2023. Pro Housing Certification is now a requirement for localities to access up to $650 million in discretionary funding. To date, more than 225 communities have been certified, including the city of New York.