Westhab’s Dayspring Campus project in Yonkers, which was designed to help address the issues of homelessness and affordable housing, has received $35.3 million in financing from TD Bank.
The Dayspring Campus includes Dayspring Commons, a six-story 63-unit apartment building at 227 Elm St. There also will be a 27,400-square-foot community center created from the former Good Shepherd Community Church at 320 Walnut St. A groundbreaking ceremony took place on Dec. 11, 2019.
TD Bank’s Commercial Real Estate business provided a $19.5 million letter of credit as well as $15.8 million in tax credit equity.
Phyllis Reich, vice president of TD Bank’s Community Capital Group, told the Business Journal about the tax credit equity aspect of the financing package.
“Westhab applied for and received an allocation of private activity tax exempt bonds, which generated low income housing tax credits for an investor to purchase,” Reich said. “In exchange for purchasing the tax credits and receiving the benefits described above, TD Bank invested $15.8 million in equity as part of the overall project financing. The TD Bank equity combined with the tax exempt bonds and other sources raised by Westhab will all be used to construct the building.”
Reich said that the overall carrying costs are lower as a result of the tax credit equity and the tax exempt bonds, which enables Westhab to offer below market rents to the tenants. She noted that the project will be monitored to ensure the rental units are affordable for low-income families.
“Dayspring Commons will bring affordable housing and supportive services to formerly homeless families and individuals in Westchester County. The resources provided will help integrate these residents into the community successfully,” Reich said.
Richard Nightingale, president and CEO of Westhab, said, “The Dayspring Campus will become both a central community anchor as well as a catalyst for additional investment in this community. Westhab is proud to partner with TD Bank to make an impact on the community.”
The apartment building will include 37 units for formerly homeless, special needs individuals who will receive on-site supportive services. Funding via the New York State Office of Temporary and Disability Assistance through the Governor’s Empire State Supportive Housing Initiative will help cover the rents on those units. The remaining units will be rented to individuals earning up to 50% of the area median income.
The Business Journal previously reported that the project would receive a $13.5 million subsidy from New York State Homes and Community Renewal and that the city of Yonkers has provided $1 million for the project.
Westhab reported that since its founding in 1981 it has created 912 units of housing in Westchester and New York City, representing investments totaling more than $134 million. It reported that its job training and placement programs have helped more than 5,500 people find jobs.