The Clinton

The Clinton

Mixed Income Residential

One of Hudson’s areas of expertise is the development of Mixed Income Housing, which combines its expertise in market rate housing and affordable housing. The most common mixed income property type is known as the “80/20” in which eighty percent of the units are market-rate and 20% of the units are affordable to a specific low-income band. Mixed Income properties typically create opportunities to utilize property tax abatement incentives and/or bond financing and often to receive federal housing tax credits. Mixed income properties require special coordination with government entities to secure approvals that may include the location and finishes of the affordable units within the property, a long-term regulatory agreement governing the affordability, and more. Mixed income properties receiving bond financing also require on-going certification regarding the occupants of the low income units to ensure units are meeting the terms of the regulatory agreement. Hudson is experienced in all aspects of Mixed Income development including the government approvals and on-going certification requirements.

Here are some examples from our Mixed Income portfolio:

  • The Hudson East is an 86-unit rental property in the East Village. It was completed in 1997. As an “80/20”, the building qualified for federal housing tax credits and a 20-year real estate tax exemption through NYC’s 421-a program. The New York State Housing Finance Agency provided tax exempt bond financing for construction. Permanent mortgage insurance was provided by the State of New York Mortgage Agency.
  • The Clinton is an 109-unit rental property in the Clinton/ Hell’s Kitchen neighborhood. Completed in 2003, this “80/20” qualified for federal housing tax credits and a 20-year real estate tax exemption through NYC’s 421-a program. Tax exempt bond financing was provided during construction by the New York City Housing Development Corporation. Permanent credit support was provided by Fannie Mae.
  • 626 Flatbush is a 254-unit rental property in Prospect Lefferts Gardens. Completion is anticipated in Winter 2015/16. As an “80/20” the building qualified for federal housing tax credits and a 25-year real estate tax exemption through NYC’s 421-a program. Tax exempt and taxable bond financing was provided during construction by the New York State Housing Finance Agency. Qualified residents within the same community board as the project will be given preference for affordable units in the initial lease-up of the property.
  • 94 North Third Street is a 75-unit rental property in Williamsburg. Construction began in 2015. This property is an “80/20” and within an Inclusionary Zoning Area. It has received approval from the New York City Department of Housing Preservation and Development to receive additional zoning floor area in exchange for including low-income units in the project.


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