Medicaid Savings Help Fund NY Project
Affordable Housing Finance
Creston Avenue Residence draws a link between housing and health care.
The New York development is the first housing project financed under the state’s Medicaid Redesign Team (MRT) Housing Capital Program. Under this new initiative, savings from the state’s Medicaid program are being used to help finance supportive housing.
For developers, the program is an exciting new funding stream.
Scheduled to open in September, Creston is a $24.1 million project in the Bronx. MRT funds are covering a little more than 10 percent of the development costs.
“Without the gap financing, which amounted to about $2.6 million, there would be no way that we could have made this happen,” says Robert Sanborn, founder and partner of The Housing Collaborative, the New York-based developer behind Creston.
About one-third of the 66 apartments will be supportive housing for high-need Medicaid users, while two-thirds will be affordable housing.
Developed in partnership with Volunteers of America – Greater New York, the project was designed by Fernando Villa, associate principal at Magnusson Architecture and Planning.
In addition to the MRT funds, Creston is being financed with about $12 million in low-income housing tax credit equity from Red Stone Equity Partners. Other funding includes bonds from the New York State Housing and Finance Agency and a Homeless Housing Assistance Program grant from the New York State Office of Temporary and Disability Assistance.