Photo by Danielle Storm
Rent-stabilized apartments will soon be coming to 1448 Third Avenue, an address currently being rehabilitated by Douglaston Development, according to a presentation from company representatives at a recent Community Board 8 meeting.
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Douglaston paid $114.5 million earlier this year for the buildings that cover two tax lots on the west side of Third Avenue between East 82nd and East 83rd streets. The building on the southern half of the block has been demolished to make way for a 39-story high-rise that will feature luxury apartments. Douglaston is maintaining the building on the northern half of the block, where 50 units will become rent stabilized.
The new tower is expected to come with amenities including a swimming pool, a yoga studio, and ample bicycle parking. Photo by Danielle Storm.
“This is a very hard part of town to find projects in,” Steven Charno, President of Douglaston Development, told CB8. “We’re thrilled for the opportunity.”
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According to Charno, existing tenants will not be displaced and will have the opportunity for rent-stabilized versions of their leases at their current rent. If renters leave, the vacated apartments will be filled through a lottery operated by the Department of Housing Preservation & Development. Eligible applicants must not make more than 80% of the Area Median Income (AMI).
The developer says existing tenants of the red-brick building on the north side of the street will not be displaced. Photo by Danielle Storm.
Current rent-stabilized prices at 80% AMI are $1,864 for a studio apartment, $2,331 for a one-bedroom, $2,796 for a two-bedroom, and $3,230 for a three-bedroom.
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During the CB8 meeting, a member of the public questioned the level of transparency Douglaston is providing to current residents about the plans. Charno responded by citing communication to residents about upgrades the company is making to the building including new electrical panels in each apartment, converting gas ranges to electric, and improvements to the lobby, bike room and laundry room, many of which are underway or already complete.
Douglaston said 47 of the 50 units are currently occupied, which raises the question of just how many affordable units will be available at the property in the foreseeable future. Aside from the three vacant units, rent-stabilized apartments will only become available through the housing lottery once current tenants leave.
One board member questioned Douglaston’s motives in pursuing the rent-stabilized project, saying that it must be of financial benefit to the firm.
“There was a good opportunity for us to do this and the tax abatement allows it to work,” Charno responded, referring to the Article XI Tax Incentive which offers a tax abatement of up to 40 years to developers that either create or rehabilitate affordable housing in New York City.
CB8 members were generally welcoming of Douglaston’s plans. The full meeting can be viewed here.
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Those with larger incomes who can maintain a subsidized rent will be getting a big break. Too bad about losing the gas range, though.