Affordable Housing Development Breaks Ground in the Bronx
Capital One’s Investment in Fischer Senior Apartments will provide over 100 units of affordable housing for seniors in the Bronx
November 3, 2023
Affordable housing continues to be a nationwide issue, and New York City is no exception.
In addition to the significant shortage of affordable housing in the city, the number of older New Yorkers is projected to grow by over 40% between 2010 and 2040 — as roughly 1,410,000 seniors are expected to call the city home in 2040.
Capital One is helping to build more affordable housing for seniors in New York through its latest investment in Fischer Senior Apartments. Developed by West Side Federation for Senior and Supportive Housing (WSFSSH), the $69 million development of Fischer Senior Apartments will provide more than 100 new units of affordable housing in the Bronx when it opens in 2025. More than 50 units will be reserved for seniors formerly unhoused, and WSFSSH will also offer a broad range of resident services, such as help managing finances and accessing healthcare.
“The measure of our worth as a society is how we treat our most vulnerable,” says Paul Freitag, Executive Director of WSFSSH. “As the senior population in the city grows, we have an obligation to deliver good quality housing that meets their needs and enables them to live healthy, engaged, rewarding lives.”
Financing Fischer Senior Apartments
Capital One provided a $32.9 million construction loan, $25.2 million Low-Income Housing Tax Credit (LIHTC) equity investment (including a $150,000 investment for resident services) and $19 million Freddie Mac mortgage, which will take effect once construction is complete and serve as the property's long-term financing.
"We’re proud to support WSFSSH with a suite of financing solutions for Fischer Senior Apartments,” says Ian McIntire, Vice President of Agency Finance at Capital One. “We were able to navigate the many requirements across funding types to support this new development, including construction and permanent financing and a LIHTC equity investment. This milestone for Fischer Senior Apartments builds on our commitment to bringing high-quality, safe and affordable housing to seniors in the Bronx alongside organizations like WSFSSH."
Every unit will have project-based Section 8 from NYC Housing Authority, guaranteeing that no tenant pays more than 30 percent of their income to rent. All units will be reserved for households 55 years and older making less than 50 percent of the area median income.
Providing Comprehensive Supportive Services
Fischer Senior Apartments will offer 24-hour on-site staffing and services that will help residents.
- Manage their finances, pay rent and meet basic needs
- Obtain and maintain medical and mental healthcare and counseling
- Foster social interaction
“Too many seniors in our city are spending night after night in homeless shelters or literally stuck inside their walkup apartments, without access to core services,” says City Council Member for District 16 Althea Stevens. “I am grateful to the WSFSSH for having the foresight and focus to build what this district really needs — good quality, affordable senior housing.”
How Capital One is Supporting Affordable Housing Creation and Preservation
Solving for the gap in affordable housing requires new construction as well as preservation. Through its national footprint, Capital One invests in multifamily housing at scale. In 2022, Capital One reported $7.19 billion in community development loans, with the vast majority of that lending in support of affordable housing for low- to moderate-income households.
In many cases, affordable properties are developed through the federal LIHTC program – a public-private partnership that leverages federal tax credits to produce affordable rental housing for communities.
Among other products, Capital One focuses on providing construction debt, which includes originating loans, bond purchases and issuance of letters of credit to finance a portion of construction costs for a new development or rehabilitation of an existing property, LIHTC equity investments, and long-term Agency loans underwritten to Fannie Mae and Freddie Mac requirements.
As part of the Capital One Impact Initiative — a multi-year commitment that strives to catalyze economic growth in low- and moderate-income communities and close gaps in equity and opportunity — we invest in organizations working to improve outcomes for inclusivity and equity across the community. For example, we have provided WSFSSF with an investment for a pilot to co-locate Federally Qualified Health Clinics at two senior housing buildings in the Bronx.
Learn more about how Capital One is improving communities across the country with solutions that support affordable housing needs and goals.