Construction is officially underway for the 1760 Third Ave project, which is turning a vacated East Harlem dormitory into affordable housing units for both formerly unhoused and low-income individuals in New York.
The housing project, which is led by Breaking Ground, a nonprofit that provides supportive and affordable housing across New York, received a $500k grant from the Wells Fargo Foundation to fund the initiative. Page Travelstead, the Wells Fargo Community Lending and Investment Group managing director, said the company’s collaboration with Breaking Ground goes back 15 years.
“We see that Breaking Ground has a proven track record of providing the kind of scaffolding necessary to build a future life,” she said. “They’re not just building a home; they’re providing mental health services, they’re providing job resources, and they’re providing just everything that someone will need to thrive and survive.”
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Financing for the project comes from both Wells Fargo and New York State in a public-private partnership. Wells Fargo provided a $24.9 million letter of credit to Breaking Ground, with a separate $500,000 grant to assist with additional costs. The organization received a $128 million mortgage from the state via the Department of Housing Preservation and Development (HPD), along with additional funding from the New York Acquisition Fund and the NYS Homeless Housing and Assistance Corporation,
Having both types of support makes the initiative more effective, Travelstead said.
“I think just doing public or just doing private doesn’t yield the same results,” she said. “I think bringing both parties or all sides to the table brings more resources and more expertise. We have different capabilities than the state and city, and they have different capabilities than we do. They can bring more subsidy, we can bring more private dollars, and it’s just a multiplier of what we can get done together.”
When asked about how the community will be affected by the development’s construction and the introduction of new people into the area, Travelstead pointed to Breaking Ground’s track record of success as proof of the positive impact these housing units can have.
“I know that there are always people [who] fear bringing formerly [unhoused] people into their community will create crime and other issues, but, as you’ve seen in every other development that we’ve done with Breaking Ground and many other supportive developers, the communities have thrived once those projects have arrived. There are services for people beyond just the residents of the housing development.”
In terms of sustainability and ensuring that the units last, Travelstead explained it boils down to funding. “The federal and state government has an interest in making sure that the project stays affordable and well-maintained, and that it has the resources it needs,” she said. “Everyone works together to make sure that the budget for operating the project is enough.”
Travelstead said they check in with Breaking Ground every month to ensure development is on track. Construction is anticipated to take one to two years.