Affordable Housing Complex Moves Forward In East Harlem

HARLEM, NY — Construction is underway in Harlem on a new building that will provide over 80 units of affordable housing, transforming a vacant lot into a facility aimed at serving vulnerable groups with essential supportive services.

The 15-story, 82-unit development, known as Castle III, is being built at 107-111 East 123rd Street, near Madison Avenue, and will be operated by The Fortune Society, a nonprofit that helps people reenter society after being incarcerated.

One hundred percent of the apartments will be affordable, open to New Yorkers earning between 30 and 60 percent of the area median income — qualifying as "extremely" and "very" low-income.

Developers have specifically allocated 58 out of the 82 apartments for formerly incarcerated individuals experiencing homelessness. Officials couldn't immediately confirm if any apartments would be reserved for Harlem 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," said Manhattan Borough President Mark Levine. "In a city severely lacking affordable and supportive housing, Castle III will be a lifeline for residents."

All tenants will have access to amenities such as an on-site laundry room, a community room, a bike room and landscaped outdoor space.

The ground floor will be open to the community and include a 1,700-square-foot program space featuring a teaching kitchen, where the nonprofit plans to offer a variety of supportive services modeled after the award-winning services at Castle Gardens.

Construction will cost upwards of $53 million, according to developers.

"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," NYS Homes and Community Renewal Commissioner RuthAnne Visnauskas said.

New York State Homes and Community Renewal has allocated funding for Castle III, including low-income housing tax credits expected to generate $20.5 million in equity and $11.7 million in subsidies.

The project also benefits from $6.9 million from the Office of Temporary and Disability Assistance and $9.8 million from the NYC Department of Housing Preservation and Development's Supportive Housing Loan Program.

Construction began this week with an estimated completion date of summer 2026. The building’s lottery is expected to open next year, officials said.

“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," said New York City Council member Yusef Salaam, who represents the Ninth District.

"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," Salaam added.

In addition to Castle III, The Fortune Society, established in 1967, has spearheaded other housing initiatives to support formerly incarcerated individuals. Castle Gardens in West Harlem offers 114 units of supportive and affordable housing, while the Academy (also known as The Castle) serves as a transitional housing program with 90 beds for emergency and transitional housing.

"The Fortune Society's commitment to affordable housing reflects our shared belief that everyone deserves a safe and stable place to call home," said New York State Assembly member Eddie Gibbs. "Castle III is a testament to our community's resilience and our collective effort to build a more inclusive and supportive city for all."