Construction crews have begun building a housing development that will feature 45 cooperative units across four separate buildings in Brooklyn's Bedford-Stuyvesant neighborhood.
Long Island-based Shelter Rock Builders is managing construction of the development known as the Bed-Stuy Fantastic Four, New York City officials said. The development, which will offer 27 one-bedroom and 18 two-bedroom units, is being built on vacant city-owned land. The upcoming co-ops mark the second phase in a series of developments city officials are planning under the Fantastic Four label.
"The groundbreaking for Phase II of Bed-Stuy Fantastic Four is a huge win for our neighbors in District 36," New York City Council member Chi Ossé, who represents Bedford-Stuyvesant, said in a statement. "Too often, homeownership is overlooked in the conversation about affordable housing in New York City. By transforming eight city-owned vacant lots into 45 permanently affordable homes, we’re giving Bed-Stuy residents a genuine pathway to homeownership."
New York City's Department of Housing Preservation and Development poured $16 million into the development, while Ponce Bank of the Bronx added another $18 million. The office of outgoing Mayor Eric Adams pitched in $2 million, and former City Council member Robert Cornegy, Jr. contributed $1 million.
Housing preservation department officials have not released pricing on the units or disclosed when construction is slated to finish. The units will be available for households that earn up to 110% of the city's area median income. New York City's area median income is $145,800 — which means 110% would equate to $124,740 for a one-person household, $142,560 for two people, $160,380 for three and $178,200 for four people, city data shows.
The development is underway just as Brooklyn — and all of New York City, for that matter — finds itself in a housing crunch. Brooklyn saw its population jump from 2.5 million in April 2010 to 2.7 million in 2020, according to U.S. Census Bureau data. However, the borough added only 21,000 new homes between 2021 and 2023, according to the latest city housing survey.
As more people move to Brooklyn, developers have been racing to build condominiums and co-op developments to meet the demand. For example, Charney Cos. secured a construction loan in May to build a 45-story tower with 182 units in Brooklyn's Fort Greene neighborhood.
To help ease the housing shortage, Adams has ordered city officials to look for potential land for new housing developments — particularly on plots the city already owns. Phase I of the Fantastic Four development, which was completed in 2021, featured 31 homes (20 condos and 11 rental units) on city-owned land. City officials are also constructing a modular home community on Staten Island and a group of townhouses called Soundview Park in the Bronx — both on city-owned land.
Co-ops offer different path to homeownership
From its look and structure, living in a co-op unit feels like being in an apartment building or a condo tower, but there are key differences.
Condo owners purchase their unit within a larger building, but co-op residents buy shares of ownership of the company that owns the structure. Buying those shares gives a resident the right to live in a particular unit. In most instances, anyone seeking to live in a co-op must get approval from the building's governing board.
Board approval aside, for some New Yorkers in particular, purchasing a co-op unit marks their first venture into homeownership. Offering more co-op spaces can help increase homeownership rates in the Big Apple, city officials and others said.
"For aspiring first-time homebuyers, owning a home serves as a vital pathway to build intergenerational wealth accumulation," Benjamin Shavolian, partner at Shelter Rock Builders, said in a statement. "It fosters self-worth, self-assurance and a sense of accountability to both family and society."