New York City Mayor Eric Adams, BRP Companies, Hudson Companies, J.P. Morgan and project partners broke ground on the second and final phase of the “La Central” housing development to bring 420 new affordable homes to the Melrose neighborhood of the Bronx.
Phase II will include a range of unit types from studios to four-bedroom apartments as well as 63 supportive housing units for formerly homeless New Yorkers. The new phase is expected to cost $343 million, with the Adams administration contributing over $137 million through the New York City Department of Housing Preservation and Development (HPD). Phase II will also include 13,000 square feet of community facility space, 1,500 square feet of retail space and 7,000 square feet of new public gardens.
Upon completion in 2028, Phase II will offer a diverse mix of affordable apartments reserved for households earning between 30% and 80% of the Area Median Income. It will include 114 units for extremely low-income households, 106 units for very low-income households and 198 units for low-income households, as well as two units for the building’s supers. The development features modern amenities, sustainable building practices, and community-focused spaces designed to foster connection and well-being. Building E will include a telescope remotely controlled by Bronx High School of Science on the rooftop while a large central courtyard surrounded by the La Central apartment buildings will also be completed in this phase.
“As we embark on bringing Phase II to fruition and move towards final completion of the La Central project, over 1,000 vitally needed affordable residences will have been created for the South Bronx as we strive to help fill the void in housing offerings across the city,” said Andy Cohen, managing director, BRP Companies. “This project further underscores our long-standing commitment to ensuring that equitable, sustainable, and community-focused housing opportunities are delivered and provide a lasting impact to residents and the surrounding neighborhood.”
The overall La Central development, comprised of five distinct buildings, delivers over 1,000 affordable housing apartments to the Bronx community. La Central Buildings A and B, which opened in 2021, are fully affordable, mixed-income, mixed-use developments with nearly 500 apartments. Building A is also home to a state-of-the-art YMCA. Building D, completed in 2019, provides 160 supportive and low-income apartments. La Central participates in the NYSERDA Multifamily Performance Program and LEED for Homes. The two new buildings created through the final phase will be designated Building C and Building E.
“Today’s groundbreaking marks a major milestone in our long-standing commitment to bringing much-needed affordable and supportive housing to the South Bronx and New York City,” said Marlee Busching-Truscott, managing director of development, Hudson Companies. “La Central has been over a decade in the making and will ultimately deliver over 1,000 high-quality and sustainable homes through an inclusive, community-focused development.”
Funding for Phase II comes from a range of public and private financing sources, including tax-exempt bonds from the New York City Housing Development Corporation, subsidy from HPD, Reso A funding from New York City Councilmember Rafael Salamanca, Low Income Housing Tax Credits, Brownfield Tax Credits, and New York State Energy Research and Development Authority grants. Red Stone Equity Partners is the tax credit syndicator and J.P. Morgan is providing credit enhancement.
“La Central exemplifies the power of public-private partnerships in creating vibrant, connected communities,” said Sharmi Sobhan, head if J.P. Morgan Community Development Banking’s East Region. “J.P. Morgan’s deep-rooted presence in New York drives our commitment to housing affordability and community growth and we know this project will pave the way for a brighter future for hundreds of Bronx residents.”
