Capital One Bank Invests in Housing for New York City's Homeless
NEW YORK, Sep 08, 2010 (BUSINESS WIRE) --
Capital One Bank today announced it has committed to provide a $14.5 million loan and investment package to help fund the building of Courtlandt Community, a new residential development in the Bronx that will provide permanent housing and on-site social services for formerly homeless individuals living in New York City. The 77-unit property, located in the borough's Melrose neighborhood, will expand the portfolio of community housing options that Capital One Bank has funded in the New York metropolitan area.
Funding for the development includes a $6.29 million construction loan made to an affiliate of Phipps Houses, New York City's oldest and largest not-for-profit developer of affordable housing. Capital One Bank has also committed to invest an additional $8.23 million through the purchase of 9 percent Low Income Housing Tax Credits to fund a portion of the Courtlandt Community construction. Additional financing will be provided through the New York City Department of Housing Preservation and Development's (HPD) Supportive Housing Loan Program.
"Capital One Bank is proud to partner with Phipps Houses to support the development of Courtlandt Community to help address the unique needs of our city's homeless population," said John Habermann, Bronx Market President for Capital One Bank. "By providing housing and specialized services for some of our city's most vulnerable citizens, this effort will not only help to transform individual lives but also contribute to the overall growth and prosperity of the community. Whether it's inside our local branches or out in the community, Capital One Bank is committed to working with our partners to invest in New York City to help it grow and thrive."
The twelve-story Courtlandt Community building will consist of 76 studio units and one two-bedroom unit reserved for on-site staff. The 76 studio units will be designated for occupancy by formerly homeless individuals suffering from mental illness or chemical addiction. All of the 76 units will be covered by a fifteen year Project-based Section 8 contract from HPD. The operation of the building will also benefit from a subsidy contract from the New York City Department of Health and Mental Hygiene's New York / New York III program. All tenants will be referred by the New York City Department of Homeless Services. The development is currently under construction and expected to be complete and fully leased to families by December 2011.
Each 300-395 square foot unit will have an intercom system, efficiency kitchen, central heat and air conditioning. The development includes 3,000 square feet of common space for resident use and support services delivery to be provided by Phipps Community Development Corporation, Phipps Houses' social services affiliate. Phipps owns and operates two other affordable housing developments in the Melrose neighborhood, totaling approximately 150 units, with another 540 units under construction. This is Capital One's second partnership with Phipps Houses, as the Bank invested $23.8 million in an 80 unit multi-family affordable housing development named Dempsey Apartments in December 2009.
"Courtlandt Community is an important addition to the affordable housing options that Phipps Houses is already developing in the Melrose neighborhood under the Melrose Commons Urban Renewal Plan," said Michael Wadman, Vice President of Real Estate Development for Phipps. "Affordable housing and appropriate services are critical to helping homeless individuals transition to more stable, healthier lives, and we're proud to partner with Capital One Bank in providing that support."
Capital One Bank is committed to investing in New York City through innovative partnerships and programs that focus on economic development, affordable housing, education and financial literacy. In the past year in New York, Capital One provided $340 million in specialized financing for 35 affordable housing properties containing more than 3,800 housing units. Further seeking to stabilize, strengthen and enhance low- to moderate-income neighborhoods, Capital One offers educational and skills-building opportunities for residents, centered on homeownership and personal finance skills. In 2009, Capital One conducted 23 homebuyer trainings for more than 400 New York families and helped home buyers secure $1.1 million in available subsidies.
About Capital One
Capital One Financial Corporation is a financial holding company whose subsidiaries, which include Capital One, N.A. and Capital One Bank (USA), N. A., had $117.3 billion in deposits and $197.5 billion in total assets outstanding as of June 30, 2010. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients. Capital One, N.A. has approximately 1,000 branch locations primarily in New York, New Jersey, Texas, Louisiana, Maryland, Virginia, and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol "COF" and is included in the S&P 100 index.
Capital One Bank is a registered trade name of Capital One, N.A.
SOURCE: Capital One Financial Corporation
Capital One Financial Corporation
Shelley Solheim, 917-589-6203