Nationwide affordable housing developer makes lasting change through cutting-edge communities
Jonathan Rose Companies (JRCo) has been at the forefront of creating “Communities of Opportunity” in New York’s affordable housing sector since 1989. With 19,000 units and $4.2 billion in assets in its portfolio, JRCo is committed to improving communities and bettering the lives of residents. The firm’s legacy, built on community development, partnerships with social service providers and a unique focus on sustainability, makes it a leader in affordable housing.
One of JRCo’s recent developments, Sendero Verde in New York City, perfectly embodies the company’s mission. The community comprises the new construction of 709 mixed-income residential units, serving everyone from the formerly homeless to households earning 110 percent of AMI. The recipient of numerous awards for its architectural and environmental attributes, Sendero Verde creates a hub of activity in the heart of Harlem. Its 90,000 square feet of community space will host senior and youth programs, educational facilities, local nonprofit services, arts, culture and more.
Additionally, the 20,000 square-foot Sendero Verde courtyard was designed to be welcoming and foster connections between residents and the surrounding neighborhood. Various activity pods in the courtyard will provide the public with space to play, gather, exercise and relax. Sendero Verde just opened its second and final phase in May.
“It’s our crown jewel of what a community of opportunity should look like,” says Jenny Wu, Managing Director of Development at JRCo.
A similar community-building endeavor can be seen in JRCo’s participation in the California market with Pasatiempo Apartments in Fremont. In 2022, JRCo acquired the property, which consists of two residential buildings with 94 units and one clubhouse. In order to enrich the community through health, social services, education and recreational programming, the firm will be hiring a full-time Resident Services Coordinator as part of its Communities of Opportunity initiative.
“We found that having [the Resident Services] Coordinator’s presence in a project really makes a big difference on how well the project performs and how well the tenants are doing,” says Wu.
BEING INNOVATIVE
With construction costs and interest rates rising, it’s challenging to make any developments, let alone affordable ones, financially feasible. As of recently, JRCo has relied more on public resources, but those can also be scarce. Even still, JRCo maintains its long-held commitment to building communities that are healthy for residents and the planet.
The firm uses sustainable alternatives to traditional building methods to save money in the long run and maximize eco-friendliness. For example, Sendero Verde is built to Passive House standards, making it as energyefficient as possible. Passive House buildings are so well insulated, they can stay warm for days without electricity.
Figuring out how to reduce carbon emissions is always a key part of JRCo’s design process. Negative effects of climate change, such as extreme weather events, disproportionately affect vulnerable populations. The firm aims to lessen the demand for natural resources by investing in energy efficiency and water conservation. For this reason, almost all of JRCo’s new buildings are all-electric.
“We believe that mitigating these climate changes … will actually reduce the long-term operating costs for us and really improve the health of our residents,” says Wu.
In addition to the construction of the buildings, JRCo also thinks outside the box when it comes to bettering the lives of residents through valuable programming and creative financial structures. The company is currently exploring a shared equity model to help residents build wealth via the performance of the building. It posits this could be a more convenient and attainable alternative to homeownership for low-income households.
MAKING A DIFFERENCE
JRCo’s culture is built on a shared, genuine care for residents and a desire to improve the surrounding community. Hosting community-serving programs covering everything from health, to education, to recreation is one way JRCo improves the community for everyone—not just its property’s residents.
One of the reasons the company has been so successful in its mission is because of the great team it’s built.
“Everybody who joins [is] very mission-oriented and wants the best for our residents. A lot of times, it’s a very collaborative process, and we work together [and] try to rely on everybody’s expertise to create the best outcome,” says Wu.
Cohn Reznick is a crucial partner to the JRCo team. The firm’s integrated team of advisory, assurance and tax professionals helps clients optimize performance, manage risk and maximize stakeholder value.
JRCo understands that developing affordable housing requires far more than merely the properties themselves. It’s not just the affordable housing itself that is necessary, but also schools, transit, good jobs and recreational space. To create lasting, impactful change, communities must be transformed or created.
To that end, JRCo’s experience over the last few decades has built a wealth of knowledge. This allows the firm to have a greater impact with each endeavor it takes on.
“One of our core values is continuous improvement. Our development projects have continued to serve as dynamic platforms to pioneer all these innovations—different partnerships, integrating cutting-edge technologies and being really creative on how we can structure the financial side of a project. …” Wu says. “We take the lessons learned from past experiences and really try to push it to be better, to be greener, to be more socially responsible. Each of our projects is a laboratory to test something—to test a new idea, a new partnership—and we continue to do that for our projects.”