Developer Solovlev Group has announced it will include 513 permanently affordable units within its proposed Freedom Plaza mixed-use development in New York City. The sprawling property will sit on six acres east of First Ave. running from 38th to 41st Streets.
Freedom Plaza will comply with New York City’s Mandatory Inclusionary Housing program and conform to all other applicable affordability strictures, Solovlev said in a statement. No fewer than 30 percent of the 1,325 units at the property will be permanently affordable at an average of 80 percent or less than the Average Median Income.
Representing the largest number of new affordable units introduced in Manhattan’s core in a decade, the property will sit on the banks of the East River.
Supportive revenue
“The challenges whenever considering affordable housing are financially related,” Michael Hershman, CEO of Solovlev Group, told Multi-Housing News. “Land and construction costs are very high and, in order to be able to include affordable housing, you need supportive revenue. The Freedom Plaza concept will produce the additional revenue needed to support affordable housing.”
The proposed entertainment and hospitality component of Freedom Plaza will be developed in partnership with Mohegan. The affordable housing announcement comes on the heels of the firm’s unveiling of its “Mohegan Momentum Partnership Program for New York City”. The program is expected to create added revenue and enlarge the customer base of establishments. In a prepared statement, a Mohegan official noted that revenue produced by the project’s entertainment and hospitality component will enable Freedom Plaza to provide the affordable housing program, as well as publicly accessible green space.
Several months ago, a partially affordable senior community built in a former hospital was unveiled in the greater New York City metropolitan area.
