The Fortune Society Breaks Ground on Permanent Affordable and Supportive Residence in East Harlem

NEW YORK, N.Y., June 24, 2024—The Fortune Society, a leading non-profit organization with a long history of providing permanent supportive and affordable housing to individuals with prior criminal legal involvement, today broke ground on the 82-apartment Castle III. This new development, located at 107-111 East 123rd Street within Manhattan Community Board 11, will offer permanent affordable and supportive housing to be built with a high-performance building envelope and onsite renewable energy. The project is designed to serve formerly incarcerated individuals experiencing homelessness and community members with low incomes, ensuring they have stable homes and the support they need to thrive.

Stanley Richards, President and CEO of The Fortune Society, expressed his enthusiasm for the project, stating, “Castle III represents our commitment to providing quality, permanent supportive and affordable housing that meets the needs of our community. By offering a safe and stable environment, we are empowering individuals to rebuild their lives and achieve their full potential.”

JoAnne Page, CEO Emeritus of The Fortune Society, said, “It is almost 25 years since Fortune broke ground on the Castle, its pioneering housing model for formerly incarcerated people released into or currently experiencing homelessness. Since Fortune started offering housing, thousands of individuals have used that housing to rebuild their lives, their families, and their communities. Castle III will continue that model by providing permanent supportive housing as well as sorely needed affordable housing for the community. Castle III is the work of many hands and deep and lasting partnerships. It is with tremendous gratitude that I thank all who made this possible.”

Castle III will feature 58 permanent supportive apartments for formerly incarcerated individuals experiencing homelessness. All tenants will have access to amenities, including an on-site laundry room, a community room, a bike room, and a beautifully landscaped outdoor space. The ground floor will be open to the community and feature a 1,700-square-foot program space with a teaching kitchen, where Fortune will provide a range of supportive services based on the award-winning service model at Castle Gardens. Supportive housing residents will have access to 24/7 support provided by social service staff, including case managers, residential aides, and program supervisors.

“Castle III embodies our commitment to shattering stereotypes. Everyone, including people with a history with the criminal justice system, deserves a safe, stable, and affordable home,” said Housing Preservation & Development Commissioner Adolfo Carrión Jr. “Paving the way for a promising future, Castle III’s 82 energy-efficient homes not only offer stability and assistance but also a fresh start for the new residents.”

“Formerly incarcerated and low-income New Yorkers are some of the most vulnerable people in the city, so it’s not hyperbolic to say that The Fortune Society’s residential buildings and services change lives. In a city severely lacking affordable and supportive housing, Castle III will be a lifeline for residents,” said Manhattan Borough President Mark Levine. “I look forward to seeing how Castle III’s future residents thrive thanks to the housing and services at Castle III.”

“Affordable, supportive housing is a key component of public safety,” said Manhattan District Attorney Alvin Bragg, Jr. “Particularly for formerly incarcerated individuals, secure homes with programs to help rebuild lives provide stability and help reduce recidivism. I congratulate Stanley Richards and The Fortune Society on the groundbreaking of Castle III, their latest accomplishment in a long history of helping New Yorkers.”

“As we break ground on this new space, we are taking a crucial step toward ensuring that our community is not excluded when it comes to having access to safe, stable, and affordable homes. This development represents hope and opportunity for our community, providing not just housing but a foundation for a brighter future. Affordable housing is a fundamental right, and together, we are making that a reality for more families in the city,” said New York City Councilmember Yusef Salaam, who represents the Council’s 9th District.

“Castle III exemplifies the power of innovative solutions in addressing housing insecurity and empowering individuals with prior justice involvement. By providing permanent supportive housing and comprehensive services, we are creating an inclusive and supportive city for all,” said New York State Senator Cordell Cleare. “This initiative is a testament to our commitment to collaborative efforts that ensure every resident has access to the resources they need to thrive. Together, we are investing in the future success and stability of our community.”

“Today, we break ground not just on a building, but on new beginnings and opportunities here in East Harlem. The Fortune Society’s commitment to affordable housing reflects our shared belief that everyone deserves a safe and stable place to call home. Castle III is a testament to our community’s resilience and our collective effort to build a more inclusive and supportive city for all,” said New York State Assemblymember Eddie Gibbs.

“Castle III exemplifies the power of collaborative efforts in addressing housing insecurity and supporting our most vulnerable populations. As we come together today to break ground on this innovative project, we reaffirm our commitment to providing quality, affordable housing and ensuring everyone has access to the resources they need to thrive. This milestone highlights The Fortune Society’s dedication to creating opportunities for successful reintegration and fostering a more just and equitable future for all. We hope other communities will follow Community Board 11’s lead by welcoming similar developments to their neighborhoods,” said Xavier A. Santiago, Chair of Manhattan Community Board 11.

Designed to be a zero-emissions building (except for a required emergency back-up generator) with rooftop solar panels to supplement grid-based electricity, Castle III will use air source heat pumps to provide heating and cooling, centralized energy recovery ventilation to deliver better indoor air quality, and CO2 heat pump water heaters to provide domestic hot water. The project has committed to certification through the ENERGY STAR(R) Multifamily New Construction Program and will incorporate lessons learned from Passive House certified projects.

New York State Homes and Community Renewal funding for Castle III includes low-income housing tax credits expected to generate $20.5 million in equity and $11.7 million in subsidy. The project benefits from $6.9 million through the Office of Temporary and Disability Assistance’s Homeless Housing Assistance Program. The NYC Department of Housing Preservation & Development provided $9.8 million in funding through the Supportive Housing Loan Program.

Due to its zero-emissions design, Castle III was awarded $850,000 through the New York State Energy Research and Development Authority (NYSERDA) Buildings of Excellence Competition, a $68 million initiative that has awarded 65 exemplary multifamily new construction demonstration projects to date. It is the only competition of its kind, with the awarded projects becoming part of a comprehensive data collection effort that will help determine how to cost-effectively deliver superior performing buildings that will serve as an essential building block of a carbon-neutral future and advance the design and construction of multifamily buildings. The Competition is administered by NYSERDA with the support of an advisory council comprising a cross-section of experts from the design, real estate, and sustainability sectors, with partners including American Institute of Architects New York State, ASHRAE, and The Real Estate Board of New York. For a complete list of the winning projects statewide, please visit NYSERDA’s Buildings of Excellence website at: www.nyserda.ny.gov/boe.

Doreen M. Harris, President and CEO, NYSERDA, said, “Advancing clean, resilient and affordable housing is a key component of New York State’s comprehensive emissions reduction strategy and I am thrilled to see construction begin on Castle III, an award-winning project. Through the Buildings of Excellence Competition, NYSERDA is proud to support projects like this that help residents live in a carbon-neutral building that will improve their quality of life and strengthen the community they call home.”

NYS Homes and Community Renewal Commissioner RuthAnne Visnauskas said, “Supportive housing offers a path to a greater future for New Yorkers who need help to live independently. The Fortune Society is an amazing partner that proves over and over again that they share Governor Hochul’s deep commitment to justice and fairness for those who are struggling in finding affordable housing. The $53.7 million Castle III will be a safe, sustainable home for those who have been released from incarceration and are in need of a stable place to live. Thank you to sister agencies and our partners at HPD for helping to bring this project to life.”

“Castle III will provide stable housing and supportive services to justice-involved individuals, and others, who have experienced homelessness so they can live and thrive in an independent, community setting,” said New York State Office of Temporary and Disability Assistance Commissioner Barbara C. Guinn. “We are pleased to support this important project and to partner with The Fortune Society, New York Homes and Community Renewal, and the New York City Department of Housing & Preservation Development to effectively meet the needs of those experiencing homelessness in New York City.”

“We are honored to work with The Fortune Society and support the development of Castle III,” said Jane E. Silverman, Executive Director, Chase Community Development Banking. “Opening the door to the scarce resource of supportive and affordable housing enables those with prior criminal justice involvement to focus on reintegrating.”

“We are proud to have a partner in The Fortune Society, an organization dedicated to serving those who are too often left behind,” said Baaba Halm, Vice President and Market Leader, Enterprise Community Partners. “Enterprise has supported this innovative and thoughtful project through a variety of efforts, including tax credit equity, flexible capital through our Frey Fund, and Sec. 4 resources. It is so gratifying to reach this milestone and know we are a step closer to individuals in need being able to call Castle III home.”

In addition to Castle III, The Fortune Society has spearheaded several other housing initiatives to support formerly incarcerated individuals. Castle Gardens, located in West Harlem, provides 114 units of supportive and affordable housing. This residence combines housing with comprehensive social services, including counseling, substance use treatment, and employment assistance, helping residents achieve stability and independence. The Fortune Society also operates the Academy (also known as “The Castle”), a transitional housing program offering 90 beds for emergency and transitional housing, with services aimed at helping individuals transition from homelessness to permanent housing.

The organization’s innovative Scattered-Site Housing Program offers another vital resource, providing apartments throughout New York City for those transitioning from incarceration or experiencing homelessness. By utilizing a scattered-site model, The Fortune Society ensures that clients have access to housing in various neighborhoods, fostering community integration and reducing recidivism. The organization has 239 scattered-site apartments.

The Fortune Society’s housing portfolio also features the Freedom House program, four emergency and transitional housing units—with a total of 385 beds—for adult men. Here, residents receive Fortune’s array of services, including case management and mental health and substance use treatment. And, the organization’s most recent housing center is the Mandaela Community in the Trinity-Reverend William James Senior Apartments, owned and managed by Bronx Pro in joint partnership with the United Methodist City Society. Mandaela offers on-site services to Fortune participants, including the justice-impacted seniors living in the 154-unit residence, where there are 57 affordable, supportive homes for seniors with histories of incarceration.

These initiatives reflect The Fortune Society’s holistic approach to supporting formerly incarcerated individuals and addressing the complex challenges they face in securing stable housing.

ABOUT THE FORTUNE SOCIETY: Founded in 1967, The Fortune Society has advocated on criminal justice issues for over five decades and is nationally recognized for developing model programs that help people with criminal justice histories to be assets to their communities. Fortune offers a holistic and integrated “one-stop-shopping” model of service provision. Among the services offered are discharge planning, licensed outpatient substance abuse and mental health treatment, alternatives to incarceration, HIV/AIDS services, career development and job retention, education, family services, drop-in services and supportive housing as well as lifetime access to aftercare. For more information, visit www.fortunesociety.org.

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