Developer busy with subsidized housing.

"You can eat off the sidewalk here," said Billy Procida, stopping his car and pointing to the government-subsidized white townhomes with blue awnings built by his family's company.

Procida continued on maneuvering his car past spanking brand-new single-family homes, renovated apartment buildings and numerous construction sites - some of them his - in an area that most people would call the South Bronx.

"We don't use South Bronx anymore," said Procida, who heads Procida Construction Corp. with his brother Mario and sister Christine. "Mid-Bronx that's the new buzz word."

In 1985, anticipating a peak in luxury apartment prices and an oversupply of product, the Procida Organization decided to take a turn and enter government-subsidized housing development.

Today, they are glad they did.

Since 1987, the firm has built or rehabilitated more than 2,000 subsidized units in the Bronx and Manhattan and has grown from $7 million in revenues to $28 million in revenues.

And, while other developer's shovels are now idle, the company is breaking ground or cutting the ribbon on three different new low-and moderate-income residential developments all built in partnership with neighborhood associations.

A simultaneous ribbon cutting and ground breaking was held last month at the Dr. John Sass Houses, at 152nd Street & Frederick Douglas Boulevard in Harlem. The ribbon was cut on Phase I, a 26-unit gut rehab and start of construction was celebrated for Phase II, a new 72-unit, eight-story new construction rental apartment house. The project is a joint venture of Procida Construction Corp., the New York Urban Coalition and the Harlem Churches for Community Improvement. The $15 million project is the largest yet funded under the New York City/State 85/85 Permanent Housing for Homeless Families Program (PHHP).

In all, nearly 100 newly created apartments are being earmarked as permanent housing solely for low-income and homeless families.

Also, last month, grand opening was held on Raul Morales Terrace, a 44-unit gut rehab of an apartment building at 824-34 East 161st Street in the South Bronx. The project is a joint venture of Procida and Banana Kelly Community Improvement Association. It is the largest project completed thus far under PHHP. The $4.8 million in funding was jointly provided by the New York City Department of Housing, Preservation and Development and the New York State Housing Finance Agency.

The project will also contain offices for Banana Kelly, headed by Yolanda Rivera, and ground floor retail spaces.

In June, the company will break ground on Melrose Court, 265 two- and three-bedroom single-family residences for purchase in the Bronx. Procida is the developer and the Bronx Shepards is the community sponsor. The project, being built under the New York City Partnership's New Homes Program, is the anchor of the city's Melrose Commons plan, which in all will rehabilitate and build 3,000 housing units, A large amount of the city's surplus budget funds will go to Melrose Commons.

According to Christine Procida, preconstruction sales at Melrose Court began nine weeks ago and 96 units have already been sold. Two-bedroom units begin at $52,000 and three-bedroom units begin at $73,000. She attributes the robust sales to the city's commitment to the area.

"The people have a very strong faith in the Bronx," she said. "They feel that if the city is putting all this money into the area, they're not going to let them down."

The firm's entree into government-subsidized housing was Salters Square, 130 single-family townhomes with groundface block facades, red awnings and blue window trim. Stretching over four city blocks from Crotona Park East to Home Street, the project was funded by Chemical Bank and the New York City Partnership. The Mid Bronx Desperados (MBD) was the community sponsor of the totally sold out project.

The company is currently selling the 49-unit Thurston Plaza II, the second phase of 100 two-family homes in the South Bronx. The units contain an owner's unit and a rental unit.

"We're relatively sold out with six remaining on the market," said Christine Procida. "Construction hasn't even begun."

Procida's other government subsidized projects include: Six-hundred units for Local Initiatives Support Corporation (LISC), 90 units for New York State's turn-key program, and 150 units for New York State Housing Finance Agency (HFA.)

Neighborhood-based

Teaming up with the neighborhood groups is essential to the success of the project, Procida said. The groups have knowledge of the area and its people, they can help get support for the project, and they can serve as a welcoming committee when the project is open.

The government-subsidized programs, said Christine, emphasize revitalizing neighborhoods. The funds are usually distributed to a number of projects in the areas so that the neighborhood begins to change and not just the property.

"The program wouldn't work as well if they didn't do that," said Christine.

Billy Procida attributes much of the housing turnaround in the Bronx to Borough President Fernando Ferrer, who he calls "a real estate borough president."

"Fernando Ferrer has done an incredible job lobbying and bringing money to housing," he said.

The company is civically-minded and involved in the communities in which they develop. Their charities and affiliations include Madison Square Boys and Girls Club, Kids of Survival, Dave Winfield's anti-drug program, St. Augustine's School of Art and little league. One of their first community help initiatives was a graffiti cleanup on Tremont Avenue in The Bronx.

Billy Procida is on the International Affairs Commission of the Bronx. One his duties is to try and convince foreign corporations to build manufacturing plants in the Bronx.

"We've always believed if you're going to do this, you have to get involved in the community," said Procida.

All in the Family

Bronx-based Procida Construction is a third-generation family business. The company was started in 1928 by the Procida's grandfather, Mario Procida, a masonry and concrete subcontractor. From the 1950's to the 1970's, their father Joseph M. Procida - now retired -- grew thecompany into a full-service general contracting firm. In 1984, sons Mario and Billy took over the business and decided to take it into the development and marketing business.

Procida Construction Corp. is now a fully-integrated development company. Brother Mario, 34, who holds a bachelors in civil engineering and architecture and a master's in architecture, is president of the construction division and handles the design aspects of the subsidized housing projects. Billy, 29, is president of the real estate and development division. And, sister Christine, 27, is president of the sales and marketing company. The sibling's mother, Dorothy, is the comptroller of the company, and, Billy said, she is the one that makes sure there is harmony. And, recently, a fourth member of the Procida offspring, Joseph, joined the business.

The company's construction projects have included the Water Club, the Golden Pacific National Bank in Chinatown, 22 West 66th Street, the Yeshiva Aterat Rora Torah School in Brooklyn, a four-story retail facility at 430-434 West Broadway, the River Cafe and a renovation at WNYC Radio.

The company's first development project was The White Beach Condominiums, a $10 million luxury beach-front community in Throgs Neck. The development includes a board walk and 26 boat slips and was one of the first dockominiums in New York State. They were also developer for Beachfront Towers, a high-rise condominium in Long Beach, California. Procida said they will return to luxury residential development and office development when the market demands.

"When the market is right, which will probably be toward early next year," he said. "We'll start looking at stuff to deliver in '94, '95 and '96."

New Directions

While focusing on housing development, the Procida Organization is also breaking into other new areas. They are building two strip centers that will serve their housing developments - one near Salters Square and one on East 180th Street.

"We're following up our residential neighborhoods by building retail around," he said.

They are also doing workouts for banks -- uch as China Trust Bank - to help the institutions finish incomplete projects.

"They came to us and it was one-stop shopping," Procida said. "The ability for the bank to call us was very appealing."

Mortgage brokerage for third parties is another area the firm is entering.

"We are utilizing our bank network and offering that to our clientele and new clientele," he said.

They are also investigating government subsidized development opportunities in Camden, Newark and Yonkers.

Procida believes that his company was ahead of the game when they decided to enter government-subsidized development.

"People are recognizing that the real estate industry had to start following what the community they serve needs," he said.