The Carrington Arms on Lincoln Avenue will be renovated by the same company that did the work on housing at 35 and 55 Maple Ave.
The New Rochelle City Council agreed at a recent meeting to have Mountco Construction and Development refurbish the 111-unit affordable housing building with five commercial storefronts at 33 Lincoln Ave.
The $21.3 million project will use a variety of public subsidies, according to Commissioner of Development Luiz Aragon, including federal low-income tax credits, a Housing Development Finance Corporation loan and tax-exempt multi-family housing bonds to be issued by New Rochelle Industrial Development Agency.
The developer will pay an increased amount in lieu of taxes—$122,695 annually with a 2.5 percent yearly escalation—and a municipal impact fee of $200,000.
The building is currently exempt from municipal property and school taxes, but pays $90,000 a year in lieu of taxes.
Aragon said the building is fully occupied and all of the tenants receive either Section 8 rent or below market interest rate assistance.
The renovation will be done so that none of the residents of the building will have to relocate during the work.
It is anticipated that 50 construction 50 jobs will be created and 10 to 12 in retail if commercial space is leased.