Goldman Sachs Urban Investment Group (UIG) Press Release | February 6, 2003
In October 2001, Goldman Sachs invested in the development of the Dorothy Day Apartments, a low-income housing project located at the comer of 135th Street and Riverside Drive in Harlem, New York. On February 6, 2003, our investment came to fruition as Mayor Bloomberg cut the ribbon and handed keys to three of the building’s 72 new tenants. “The measure of a just society is how well it meets the needs of its least fortunate members,” said the Mayor. Mayor Bloomberg thanked Goldman Sachs for its role in helping to make the Dorothy Day apartments a reality.
Dorothy Day represents the first deliberate attempt nationwide to apply to families the proven model of supportive housing for adults. In addition to providing shelter, this project will offer 72 families the supportive services they need including counseling, health services, and vocational and employment training. The facility will also include an on-site day care center for the children living in the apartments.
Broadway Housing, a NYC-based nonprofit developer of affordable housing, worked tirelessly to identify both city and state funds to help subsidize the cost of the development and ultimately identified Goldman Sachs as the equity investor. Over the past two years, Broadway Housing completely gutted the interior of the building, replaced all the electrical, plumbing and air circulation systems, and then created 72 units of rental housing. They also refinished the façade of the building and restored it to its original turn-of-the century grandeur. The completed building includes a day-care facility and office spaces for the on-site supportive services.
As John Thain has remarked about the firm’s involvement with the Dorothy Day Apartments, “Goldman Sachs is proud to have played a role in creating more affordable housing in New York City. We cannot do it all, and we cannot do it alone. But Dorothy Day was an opportunity to do our part in making this a better city, and to do well at the same time.”
Broadway Housing acquired the vacant building through an anonymous gift in tribute to Dorothy Day, a community activist who devoted her life to providing housing for New York’s neediest people. In 1933, Dorothy Day began opening shelters for the homeless on Manhattan’s Lower East Side and opened scores more in the following decades. Dorothy Day believed not only that society had an obligation to house its neediest members, but that poor people were also entitled to live well and to enjoy inspiration from their surroundings. With sweeping views of the Hudson River and its spacious accommodations, the Dorothy Day Apartments are a fitting legacy.
Goldman Sachs was a limited partner in a partnership that controlled the site. As a limited partner, Goldman played an oversight and monitoring role, closely tracking the progress of construction and the integrity of the project’s budget to ensure that our financial targets would be met. The Firm’s investment was in the form of low-income housing tax credit equity. In exchange for providing capital for the construction of the project, Goldman Sachs will receive a stream of Federal, dollar-for-dollar tax credits greater than the value of our capital. This investment falls under the Federal Low Income Housing Tax Credit program, which since 1987 has been responsible for the creation of over 1 million units of affordable housing, and creates approximately 100,000 additional units of affordable housing each year.
Dorothy Day is a unique project among the eleven investments made by the Goldman Sachs Urban Investment Group (UIG). Our real estate projects also include market-rate and mixed-income housing developments in Harlem. UIG was formed in August 2000 to make equity investments in urban real estate projects and in minority-owned companies. Our corporate investments include a for-profit charter school company and a couture designer of bridal wear.