Governor Hochul Announces Major Progress on 583 Affordable Apartments and Community Services in East Flatbush as Part of the State’s Vital Brooklyn Initiative

Utica Crescent Located Near Kingsbrook Jewish Medical Center Completed; Sparrow Square Located at Kingsboro Psychiatric Center Breaks Ground, Builds on Governor's Efforts to Build More Housing on Underutilized State-Owned Land

Projects are Key Components of Vital Brooklyn Initiative To Address Social, Health, and Economic Disparities in Central Brooklyn

Governor Kathy Hochul today announced major progress on the state's Vital Brooklyn Initiative with the completion of Utica Crescent and the start of construction at Sparrow Square, which together will deliver 583 new affordable residential units in East Flatbush. The $1.4 billion Vital Brooklyn Initiative is a comprehensive community development program to address social, economic, and health disparities in Central Brooklyn neighborhoods, some of the most chronically underserved areas of the State. Utica Crescent and Sparrow Square build on the completion of other Vital Brooklyn milestones the Governor has announced including The Rise in Brownsville, Alafia Phase One in East New York, and Herkimer Gardens in Bedford Stuyvesant. With the completion of Utica Crescent and the groundbreaking of Sparrow Square, more than 2,500 homes are completed or under construction under the Vital Brooklyn Initiative.

"These two transformative developments in East Flatbush bring the promise of the Vital Brooklyn Initiative to life - creating affordable apartments and expanding access to health and community services in an area of the city that has been underserved for decades," Governor Hochul said. "These investments put the health and well-being of the developments' residents and the surrounding neighborhood at the forefront and bring us closer to creating a more equitable Brooklyn where everyone has a fair shot at a brighter future."

322-Unit Utica Crescent Complete

Constructed on a former parking lot adjacent to the Kingsbrook Jewish Medical Center, Utica Crescent delivers 322 modern apartments for households earning up to 80 percent of the Area Median Income, including 89 with on-site supportive services for eligible elderly residents. The health and wellness-oriented hub includes a healthcare center operated by One Brooklyn Health System, retail space, grocery store, community facility, and exercise and recreational opportunities.

The project will include fully accessible and adaptable apartments. There are 17 units to accommodate residents with mobility disabilities and seven units to accommodate residents with sensory disabilities.

Empire State Development (ESD) adopted a General Project Plan in 2022 to support the redevelopment of the underutilized East Flatbush site into affordable housing, retail, health care and social service space. The $256 million project was developed by Monadnock Development, CB Emmanuel and Equity Developers LLC, with Catholic Charities Neighborhood Services providing the on-site support services. State financing includes $122 million in tax-exempt bonds and $106 million in Low-Income Housing Tax Credit equity from New York State Homes and Community Renewal (HCR). In addition, the project received approximately $96 million in subsidy from HCR. Operating expenses and on-site social services are funded through the Empire State Supportive Housing Initiative (ESSHI).

261-Unit Sparrow Square Breaks Ground

In 2021, ESD and HCR conditionally designated a team to redevelop approximately 7.2 acres of the Kingsboro Psychiatric Center campus. The full project will transform the site into affordable housing, open space, health-focused community space and replacement shelter buildings. Construction is now underway on phase one of the three-phase project. Sparrow Square is part of the 3,500 units of specialized housing included in Governor Hochul's landmark $1 billion mental health initiative and the first New York City project in the initiative to break ground. The redevelopment of Sparrow Square is guided by the goals set forth in Executive Order 30, which directs New York State agencies to identify and activate underutilized state-owned sites for housing, and fulfills Governor Hochul's commitment to address New York's housing crisis by increasing supply, promoting affordability and creating stronger, more inclusive neighborhoods.

The 261-unit all-electric development will include two modern residential buildings. More than 100 units will be reserved for eligible vulnerable households and those struggling with homelessness who are eligible to receive on-site supportive services. This first phase will have approximately 20,000 square feet of community facility space and 63,000 square feet when fully complete, a ballet studio, and resident social service space. When complete, the proposed project would provide up to 1,081 new affordable homes of which nine percent would be homeownership units.

The project will include fully accessible and adaptable apartments. There are 17 units to accommodate residents with mobility disabilities and 10 units to accommodate residents with sensory disabilities.

The $242 million project is developed by Douglaston Development and Breaking Ground. Sparrow Square is supported by HCR's Federal Low Income Tax Credit Program, which is expected to generate $109 million in equity and $69 million in subsidy. The New York State Office of Mental Health (OMH) provided $30 million in capital funding through Governor Hochul's $1 billion mental health initiative, and will offer additional funds to support start-up activities. The New York State Office of Temporary and Disability Assistance's (OTDA) Homeless Housing and Assistance Program is also providing $15 million in capital funds. Operating expenses and on-site social services are funded through an ESSHI award administered by OTDA and via OMH Supportive Housing Single Room Occupancy funding.

Read the full press release here.