BROOKLYN, NY - A long-dormant block on Atlantic Avenue in Ocean Hill Brownsville, Brooklyn, will generate almost $34.5 million in economic stimulus, thanks to the affordable condominiums that Habitat for Humanity - New York City is building on the site. Every dollar invested by Habitat-NYC in its Atlantic Avenue complex will generate approximately $3 in economic activity to New York City, HRA Advisors, Inc. reported in a July 2008 economic and fiscal impact study.
Josh Lockwood, Executive Director of Habitat-NYC, said: "We know that investing in affordable housing provides hardworking, low-income families with desperately needed homes. We also know that the combined efforts of Habitat-NYC homebuyers, volunteers and staff are having an impact far beyond the walls of our project." He added: "Their analysis underscores that affordable housing development spurs economic development."
"Construction of affordable housing doesn't just provide low-cost homes for the families moving in to new apartments, it also brings jobs and business to neighborhoods and a boost to our city's economy," said Shaun Donovan, Commissioner of the New York City Department of Housing Preservation and Development. HRA, a respected real estate and economic development consulting firm, examined the Habitat-NYC's Ocean Hill-Brownsville project comprising 41 units of affordable condos.
This project will: Generate about $34.5 million in economic activity over the next 40 years. Generate approximately $3 for every dollar invested in the $12.1 million project, more than a 300 percent return on project investment by Habitat-NYC and its supporters; Support 111 jobs and create $20.45 million in economic activity during the two-year construction phase alone; Funnel $2 million of that $20.45 million directly to businesses in Ocean Hill-Brownsville, strengthening the economy of one of the city's lowest- income neighborhoods; Over the next four decades, this project and its new 41 Habitat-NYC homeowners will: Spend $13.9 million in New York City; Contribute more than $4.4 million in tax revenues to the city.
Eric Rothman, President of HR&A, said: "What made this economic and fiscal impact analysis so compelling was valuing the combined contributions of Habitat-NYC and the thousands of volunteers who are building the Atlantic Avenue project. HRA combined sophisticated economic models with dozens of on-the-ground interviews with construction staff and volunteers to accurately capture the full impact of Habitat-NYC's innovative work."
Habitat-NYC's Atlantic Avenue complex, the largest multifamily project ever built by a Habitat affiliate, will meet stringent LEED green-building standards, providing healthy, sustainable and energy-efficient homes. Brooklyn Borough President Marty Markowitz said: "Not only has Habitat-NYC helped deserving Brooklyn families reach the 'American Dream' of home ownership in Ocean Hill-Brownsville, but these affordable condominiums will have an added benefit of pumping millions of dollars of revenue into the local economy."
Habitat-NYC's homeowners must be first-time homebuyers earning between 45% to 80% of the federal Area Median Income; living in overcrowded, substandard housing or paying more than half their income on housing; and willing to contribute 300 "sweat-equity" hours per adult to help build their homes.
About 10,000 volunteers will help construct these homes, spending money in the community and helping revitalize it. Habitat-NYC will buy many supplies from local businesses; construction workers, future homeowners and volunteers will buy lunches in the area. Together, this will channel nearly $2 million directly to Ocean Hill-Brownsville during the two-year construction period.
Source: PRnewswire.com