Beacon Communities Announces Completion of First Phase of $30 Million Rehabilitation of Affordable Housing in NY

Beacon Communities announced the completion of the first of two phases of a $30 million major rehabilitation of Martin Luther King (MLK) Apartments in Troy, NY. The development was originally built in the early 1970s as affordable housing for families and have been owned and operated since by the Troy Housing Authority.

Phase I’s scope included the gut rehabilitation of six of the twelve existing buildings, comprising 46 apartments, including new roofs, new electrical wiring, new kitchens and bathrooms and the addition of laundry facilities to each building.

The MLK Apartments consist of townhouse style apartments and the historic former Eddy Family Mansion. The apartments required significant structural and site improvements to remain viable housing. Upon completion of Phase 2, the development will include 104 apartments and the majority of units will accommodate large families with three or more bedrooms.

Beacon Communities prioritized the opportunity to improve the overall energy efficiency of the apartments, which will now achieve National Green Building Program Bronze and Gold Certification levels. Phase I incorporated energy efficient design features including EnergyStar appliances in the common laundry facilities, EnergyStar central air conditioning, substantially upgraded envelope insulation, windows and doors and air sealing, as well as high efficiency furnaces to reduce energy use and costs. These investments will help to lower the high utilities costs incurred at the property.

The apartments are being redeveloped in two phases under Housing and Urban Development (HUD)’s Rental Assistance Demonstration program, which allows housing authorities to access private capital to meet capital needs while also protecting long-term affordability.

The second and final phase of the project will include a Photovoltaric Solar panel array to generate more than 900kWh-s of electricity, enough power to meet the annual electricity needs of the entire development.

Phase II of the redevelopment will also include the demolition and moderate rehabilitation of five existing buildings, and the new construction of 11 two-story townhouses. The final phase is expected to be completed by January of 2020.

Beacon Communities Development LLC partnered with the Troy Housing Authority on the development of this project. RIDA Architect of Colonie is the project architect and AOW Associates of Albany is the General Contractor.

The total development cost for Phase I is $13 million. NYS Homes and Community Renewal provided LIHTCs that will generate more than $11.7 million in equity for the project. The New York State Energy Research and Development Authority provided a $115,000 award. Additional financing was provided by KeyBank, the Community Preservation Corporation, the Troy Housing Authority and the Capital District Transportation Authority.