The New York City Council approved a tax exemption under Article XI of the Private Housing Finance Law for BRC Cluster 3, a project converting former DHS shelters into affordable housing. The project involves the rehabilitation of three buildings containing 189 units, including asbestos and lead remediation, masonry repairs, full apartment renovations, and electrification of one building. The properties were initially acquired in 2021 under the DHS Cluster Conversion Initiative. BRC, a nonprofit focused on homelessness solutions, will take long-term ownership and manage the housing under a 60-year HPD regulatory agreement. The project is supported by city financing, including capital from HPD and Merchants Capital as a senior lender.
This project transforms previously private-owned shelters into permanent, affordable housing, helping address homelessness in New York City. The 40-year tax exemption ensures long-term affordability and financial stability for the rehabilitation and maintenance of these properties.