Applicant: Westhab, Inc.
Project: 22 Tarrytown Workforce Housing
Attachment F9: Proposal Summary
Project Information
22 Tarrytown Workforce Housing will be a multi-family, mixed-income, rental building
located in Westchester County at 22 Tarrytown Road, Greenburgh, NY 10607. The 27,574
SF, three-story, 28-unit building will have an elevator and will include 15 studio, 10 one-
bedroom, 3 two-bedroom apartments, tenant storage, and laundry and community room. The
building will contain 16,063 SF of residential space and 11,511 SF of common areas. The
Project will serve income bands at 30%, 46%, 48%, 50%, 57%, 60%, 62% and 65% AMI.
The apartments will have individual high-efficiency HVAC combined with hot water.
Tenants will pay for their own heat, air conditioning, hot water, cooking gas, and electricity
(offset by utility allowances). Tenants will also pay for laundry and parking (construction
costs of parking is not included in eligible basis). Visitor parking will be free. Trash pick-up,
sewer, and water are included in the monthly rent. There will be no commercial space or
community service facility included.
22 Tarrytown Workforce Housing has been conceived under DHCR’s Green Building, and
Energy Efficiency Initiatives. Preference in tenant selection for 5 units (18%) will be given to
persons with special needs: homeless veterans, under a supportive services plan (see
Attachment E-1 for Housing & Services Agreement). The veterans can qualify for studio or
one-bedroom apartment depending upon his/her level of income (including subsidy).
Operating expense savings derived from sustainable energy efficient construction and
revenues derived from SLIHC rents above 60% AMI will enable the project to achieve
several public purposes:
Successful re-integration of Veterans into permanent housing;
Use of cash flow from energy savings to subsidize rents below 50% AMI;
Use of an extensive vegetated Green Roof and rainwater harvesting to reduce storm water
runoff from the property in comparison to current conditions;
Satisfaction of several of the goals and initiatives set forth in the Westchester County
Consolidated Plan:
o bring moderate income families above 60% AMI into the neighborhood;
o provide housing for the homeless (in the form of Veterans for this project);
o provide high quality permanent affordable housing;
o redevelop a grayfield site; and
o reduce traffic congestion by placing housing near public transportation
o stimulate growth in the Route 119 Transportation District.
Development Team/Ownership Information
Westhab, Inc. will act as developer, sponsor, and property manager. Jeff Chu, Senior
Development Associate will be responsible for financing, project development and
construction. Helen Rosenberg, Esq., in-house counsel, will handle loan and finance
closings and organizational filings. Marketing, rent up, property management, and
coordination of supportive services will be performed by Westhab’s Housing Division
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Applicant: Westhab, Inc.
Project: 22 Tarrytown Workforce Housing
(supervised by Ken Wray, Vice President Housing Services). Tax credit syndication
(with Raymond James Tax Credit Funds), and construction loan financing (with Webster
Bank, N.A.) will be performed by Mr. Chu and Ms. Rosenberg.
Westhab 22 Housing, LLC (Tax Credit Partnership), an already formed limited liability
company, will be the ownership entity. The LLC will have two members: The Investor
Member with a 99.99% interest will be an entity formed by Raymond James Tax Credit
Funds, Inc. The Managing Member, with a 0.01% interest is Westhab Greenburgh Housing,
Inc, an already formed business corporation. The Managing Member will have Westhab, Inc.
as a 51% majority stockholder and Sisca Northeast, Inc. as a 49% minority stockholder.
Westhab, Inc. as 51% majority stockholder in the Managing Member will have effective
control of the project throughout the tax credit and regulatory periods. Sisca Northeast, Inc.
as 49% minority stockholder has an identity of interest as General Contractor for the project.
Westhab, Inc. and Sisca Northeast, Inc. will also be co-guarantors under construction
completion, operating deficit, and tax credit guarantees to the Investor Member. There are no
identities of interest between the Investor Member and the Managing Member, nor any
between the tax credit equity and the lender. Sisca Northeast, Inc., minority stockholder of
Westhab Greenburgh Housing, Inc., will also be the General Contractor.
Project Design and Use Information
The proposed site is divided into two elevations but is otherwise flat. The building has been
designed to take advantage of the existing topography and basement excavations to minimize
excavation and grade changes. Westhab, as developer, will contract with Sisca Northeast,
Inc. as General Contractor, to build a new, three-story steel and concrete building with light-
gauge steel and concrete plank.
22 Tarrytown Workforce Housing has been accepted in the NYSERDA Multi-family
Performance Program and has been conceived to achieve at least LEED Silver status. It will
include sustainable features such as passive solar features to minimize heat gain in the
summer and emphasize solar heat gain in the winter, exterior sliding shutters and sun shades
for the windows, an extensive green roof, individual hi-efficiency split-system HVAC units
with no through-wall penetrations, energy star appliances and lighting (with motion sensors
and timers as appropriate), rain water harvesting system (for landscape irrigation) and low-
flow plumbing fixtures.
The grounds will include well-landscaped buffer areas between the building and adjacent
parcels as required by Greenburgh zoning. Residents will enjoy approximately 10,000 SF of
landscaped areas including 2,816 SF set-aside for a children’s play area and outdoor seating
The building will have 3 move-in ready handicap accessible apartments (1 one-bedroom and
2 studio apartments) of which 2 apartments will also be move-in ready for hearing and
vision-impaired residents. The rest of the apartments will be handicap adaptable.
Land Information
Westhab owns the site, had it rezoned to M-174 (Multi-family high-rise) to permit the
development of this building, and achieved Site Plan approval in October, 2009. There are
Unified 2010
Applicant: Westhab, Inc.
Project: 22 Tarrytown Workforce Housing
three existing vacant commercial buildings that will be abated and demolished. Demolition
and construction specs will include provisions for disposal of asbestos and lead in the
existing structures as well as any underground contaminants, if encountered. No abatement
activities will occur until all plans and specs have been approved by HTFC.
The acquisition cost of $1,181,780 represents $814,445 of purchase price plus carrying costs
since January 2009 ($323,505 in interest expense and $43,830 in property taxes). Funding for
these costs will come from the Housing Trust Fund Award, Urban Initiatives Award, and tax
credit equity as summarized in Exhibit 3 to this application.
Development of construction documents will proceed as soon as the notice of award of tax
credits, Housing Trust Fund and Urban Initiatives has been received. The development team
will work with the Building Department during the development of construction documents
so that a building permit will be achieved by November/December 2010. Construction is
projected to begin by March 2011, but could begin as early as November/December 2010,
subject to market and financing conditions.
Project Location and Market Information
The site is in the northeast corner of Greenburgh bordering White Plains adjacent to
commercial shopping on Tarrytown Rd and additional shopping and the Greenburgh
Neighborhood Health Center on Central Avenue. The County-operated Bee-Line bus runs
south on Central Avenue and east/west along Tarrytown Rd. from several stops less than 500
feet from the entrance to the building. The White Plains Metro North train station and the
White Plains Transcenter (regional bus transfer station) are within a 15-minute walk. A&P
and Pathmark supermarkets are approximately 1 mile west and south, and a green grocer is
located across Tarrytown Rd. Employment opportunities in downtown White Plains, the
Neighborhood Health Center as well as Greenburgh’s new public library are all easily
accessed by bus. In addition, residents accessing services at the VA Hudson Valley Health
Care System at Montrose, NY can take the Bee-Line bus to the Tarrytown Metro North
station and then Metro North to Montrose, NY.
22 Tarrytown Workforce Housing will include special needs apartments at 30% AMI to
address demand from veterans served in Westhab’s transitional housing and employment and
training programs. Veterans who have successfully completed these programs will be eligible
for referral to one of the 5 set-aside apartments. Those with sufficient income or who have
been provided with a S+C subsidy can move into a 30% AMI studio apartment. Those who
have secured a VASH Section 8 Voucher can move into a 50% AMI one-bedroom apartment.
With respect to market information for the area, per the Market Study in Attachment C-2,
overall potential demand for our units greatly exceeds supply. There are only three tax credit
developments in the area, two mixed income 80/20 HFA-funded projects along Route 119 in
which only 20% of the units are at or below 60% AMI, and one older development in the
Fairview section of Greenburgh with 48 units at or below 60% AMI.
Project Financing Information
Construction financing: The Investor Member is to pay $0.74 per dollar for $462,000 per
year federal Credits and $0.45 per dollar for $560,000 per year NY State Credits, and will
Unified 2010
Applicant: Westhab, Inc.
Project: 22 Tarrytown Workforce Housing
contribute 20% ($1,187,642) of its capital contributions during the construction period, as set
forth in the enclosed commitment letter from Raymond James Tax Credit Funds, Inc.
Westhab has obtained a commitment for construction financing from Webster Bank, N.A. of
$6,150,565. The construction loan has an interest rate floor of 5.5% and covers construction
(16 months), lease up (3 months), stabilization (3 months) and permanent conversion (2
months) for a total of 24 months. Construction interest for approximately 21 months through
placed-in-service date will accrue to construction and 3 months will accrue to operations.
Westhab has already received a $560,000 award from the Federal Home Loan Bank of New
York Affordable Housing Program and a $400,000 award from the U.S. Department of
Housing and Urban Development, Supportive Housing Program (see documentation in
Attachment D3.) These funds will be used to partially cover architecture fees and residential
hard costs during the construction period. The balance of construction financing will come
from the $200,000 Urban Initiatives award, $880,000 from Westchester County HOME and
Community Development Block Grant funds, and $80,203 in deferred developer fees.
Permanent Financing: Financing during the construction period from tax credit equity
($1,187,642), Urban Initiatives ($200,000), Federal Home Loan Bank ($560,000), HUD SHP
($400,000), HOME and CDBG funds ($880,000) will stay in place as permanent financing.
An additional $4,750,564 in tax credit equity will be paid by the Investor Member upon
Stabilized Operations ($25,000 to be held until issuance of 8609’s). The additional equity,
plus $1,400,000 from the Housing Trust Fund loan will be used to repay the construction
loan. Repayment of the $80,203 deferred developer fee should be achieved from cash flow by
the sixth year of operations.
Rental Income: Five apartments will be rented to homeless Veterans. Veterans referred from
the Montrose V.A., or through Westhab’s Veteran’s Grant and Per Diem and Employment
and Training programs will qualify for a studio apartment at a tenant charge of $468 per
month. Homeless Veterans who have obtained VASH Section 8 Vouchers will instead be
eligible for a one-bedroom apartment renting at $883 per month. Annual gross rental income
for all 28 apartments is expected to be $298,284.
Operating budget: Debt Service, Replacement Reserves: Annual operating expenses are
expected to be $212,919. Annual debt service payments are expected to be $22,800 and
annual deposits into reserves will be $31,349.
How development cost risks will be minimized, how any operating expense issues will be
addressed and, the source and duration of any tax relief or rental assistance that is
anticipated or committed: The project will be constructed under a guaranteed maximum
price contract negotiated with Sisca Northeast, Inc. Westhab, Sisca, and MAP architects have
had extensive discussions regarding the construction budget before arriving at the estimate
used for this application. The project has already received final site plan approval, and
Westhab believes it has fully accounted for all soft costs in the development budget.
Adequate hard and soft cost contingencies have been reserved in the Development Budget as
a hedge against possible unforeseen construction or soft cost expenses. A payment and
performance bond will be in place to ensure completion by a surety company in the event the
contractor does not complete the work per the contract.
Unified 2010
Applicant: Westhab, Inc.
Project: 22 Tarrytown Workforce Housing
Westhab, as manager of over 1,000 affordable rental units in Westchester and Bronx
counties, is able to negotiate favorable prices for supplies and subcontracted work. This
applies not only to janitorial and maintenance materials and services, but also through
consolidated purchasing contracts for energy supplies.
Rents are calculated to be adequate for meeting Operating expenses with modest increases
over thirty years. There is no tax relief program as such in Greenburgh and the estimate used
for property taxes assumes an assessment using an “income” approach as provided for in
Section 581-a of NYS Real Property Tax Law for income restricted rental properties.
Westhab will seek to realize lower property taxes for 22 Tarrytown Workforce Housing as
compared to similarly sized market-rate projects.
Unified 2010