News Alert: June 29
Bloomberg's Housing Plan on Track
Crain's New York reports the Independent Budget Office has found that Mayor Bloomberg's 10-year housing plan is on track to meet its goal of creating or preserving 165,000 affordable housing units by 2014.
Through the end of fiscal year 2011, the city was 124,418 units or three-quarters away from reaching its goal, mostly because of its shift to preserve units and its ability to take advantage of the changing financing environment and other federal stimulus funds and programs. To meet its goal the city must start creating or preserving roughly 13,500 units a year through 2014.
The IBO report "points out that although the city reduced its capital budget commitment to the $8.3 billion plan by 13% to $3.9 million, the shortfall was mostly filled by the use of increased funds from the Housing Development Corp., the city's housing finance agency, and other federal economic development and housing stimulus programs."
Click here for the full article.
News Alert: June 28
Housing Recovery Buoyed By State Housing Agencies
Bloomberg.com reports that:
State housing agencies are contributing to the nascent housing recovery in the U.S. by making more grants and loans to cover costs such as origination fees, third-party appraisals and insurance premiums that have jumped about 9 percent since the U.S. housing collapse that has brought average home prices down 34 percent from their July 2006 peak. In the area where Carlson bought, prices are up 4 percent since hitting their low in March 2011, according to the S&P/Case-Shiller Index for metropolitan Minneapolis.
The Minnesota agency expects to increase lending this year by about 2 percent, while Iowa’s will expand by about 15 percent and Maryland’s by about 30 percent. "That’s boosting the revenue and creditworthiness of the agencies, some of which also bundle the mortgages into securities for sale to investors to recoup the cost of down payment assistance at a profit," said Ping Hsieh, a senior analyst at Moody’s Investors Service.
State housing finance agencies have $107 billion in outstanding tax-free muni debt that’s rated by Moody’s. The debt is “very solid,” Tim Milway, director at New York-based BlackRock Inc., which oversees $105 billion of municipal debt, said in a telephone interview.
Click here for the full article.
News Alert: June 27
Atlantic Yards Set Back Again
The New York Court of Appeals has ruled that Forest City Ratner and the Empire State Development Corporation must complete a new environmental impact statement for the Atlantic Yards project that extends through the next 25 years. The original EIS studied only 10 years and was modified by the developing parties in 2009, which opened the door for legal action from local community groups. The EIS was modified to reflect the fact that the original 10-year development plan would take much longer due to economic conditions and local opposition efforts.
Click here for the full Crain’s New York article.
News Alerts: June 27
Saratoga Springs Housing Authority Sidesteps City Council Requests
The Saratogian reports that the Saratoga Springs Housing Authority has responded to a City Council memo regarding issues such as the bedbug infestation at Stonequist Apartments, the contract and compensation of Executive Director Ed Spychalski and the SSHA’s relationship with the Saratoga Affordable Housing Group. The City Council memo also included “steps the Housing Authority should take to comply with state law, including submitting its salaries to the City Council for approval.”
The SSHA response expressed a desire to improve communication between the Authority and City Council, however it neglected to directly address “the issue of providing retroactive, current and future approval of contracts and salaries of its employees.”
Click here for the full article.
News Alert: June 27
Hybrid Solar Energy Systems and Multifamily Buildings?
The New York Times Green Blog has an entry discussing the new developments in hybrid solar energy systems that aim to deal with the question of what to do with all the unused heat energy created by solar cell panels. One solution discussed involves using the solar energy system to also heat the building's water to as high as 158 degrees.
This solution is thought to be a better fit in areas where the cost of natural gas is high.
Click here to access the blog entry.
News Alert: June 27
City Not Obligated to Fund Rent Subsidy Program
GlobeSt.com reports that the New York State Court of Appeals has ruled that "New York City has no obligation to continue rent subsidies under the Advantage program designed to help homeless families and individuals secure permanent housing"
The four-judge majority read the city's "guarantee[d]" commitment to the Advantage housing program as nothing more than an assurance that landlords would receive their rents even if the tenant was stripped of public assistance benefits, which was not the case under a predecessor housing program.
But three dissenters accused the court of allowing the city to "renege" on an inducement and expressed concern that the ruling would muddle contract law with uncertainty.
Zheng v. The City of New York, 147, involved roughly 15,000 participants in a program which paid up to $1,000 per month in rent subsidies for up to two years.
Click here for the full article.
News Alert: June 27
NY Captures Large Share of 1Q HARP Refinancings
The New York Times reported yesterday that HARP refinancings in the first quarter of 2012 shot up dramatically due to relaxed loan-to-value and other expense requirements.
New York and New Jersey accounted for 73,000 (40.5%) of the 180,000 HARP refinancing nationwide in the 1st quarter. New York alone saw 32,000 refinancings (17.7%).
Click here for the full article.
News Alert: June 27
Key Factors in Affordable Housing Preservation
HousingFinance.com offers a piece on the big factors affecting the preservation of existing affordable housing developments. It cites the supply deficit as reported in the recent Harvard JCHS study, the large numbers of owners who either can’t afford upkeep and sell to conventional developers, the 800,000 units reaching the end of their rent-restrictive contracts and the shift of younger households away from homeownership as placing tremendous burdens on the affordable housing market.
It also recommends three new key tools that can help in response to these trends:
1. RENTAL ASSISTANCE DEMONSTRATION
2. FHA PILOT PROGRAM
3. NONPROFIT SALES PROCEEDS
Click here for the full article.
News Alert: June 27
LIC Art Mecca Slated for Demolition
The 5 Pointz graffiti mecca will be demolished by September 2013 to make way for two 41- and 47-story tall towers containing 1,000 rental units. No affordable housing is planned for the site however the towers would require the issuance of special permits due to their heights.
Click here for the full story.
News Alert: June 26
Southern Tier Regional Economic Development Council Announces Housing Rehab Projects
The Southern Tier Regional Economic Development Council today announced eleven housing rehabilitation and community development projects totaling $ $3,017,000 and affecting over 200 households. “The total project will generate more than $5 million in economic activity to improve the lives of hundreds of New Yorkers.”
The projects include:
Click here for the full press release and list of awarded projects.
News Alert: June 26
Governor Reports Property Tax Abatement Will Be Preserved
The New York Times City Room blog has a story that a property tax abatement for hundreds of thousands of condominium and co-op owners in New York City would be preserved. The abatement will be extended despite Governor Cuomo’s “rejection of a renewal of the abatement as part of a package of housing legislation on the final day of the legislative session last week.”
The abatement, scheduled to expire on June 30, which would “lead to $430 million in additional taxes for more than 360,000 taxpayers in the city, or $1,194 on average.”
[The] legislation to renew the tax break became public only on the final day of the session last Thursday, and the governor refused to waive the normal three-day waiting period between a bill’s introduction and when it can be voted on—a step he has said he would prefer to use only for emergencies.
The tax abatement was also only one component of the complex and controversial package of housing measures that was brought out Thursday, leaving little time for scrutiny from the public or lawmakers.
News Alert: June 26
Magnusson-designed El Jardin de Selene receives LEED Gold Certification
The New York Real Estate Journal reports that El Jardin de Selene in the South Bronx has received LEED-Gold Certification from the U.S. Green Building Council (USGBC). The designation makes it one of the first affordable housing developments on privately acquired land to receive LEED-Gold Certification.
The building was developed by a joint venture of Melrose Associates, Nos Quedamos and MJM Construction Services and designed by Magnusson Architecture and Planning, PC. El Sardin de Selene includes 84 rental units for very low- , low- and middle-income households.
Click here for the full article.
News Alert: June 25
Sen. Grassley Demands Access to Hidden NYCHA Report
The New York Daily News reports that Senator Charles Grassley (R-IA) has demanded an unredacted copy of Boston Consulting Group report commissioned by NYCHA. Senator Grassley also requested information on the agreement between Boston Consulting Group, the firm hired to compile the report, and NYCHA. Boston Consulting Group once employed NYCHA Chairman John Rhea.
The City Council was rebuffed earlier this month in efforts to view the report, with Chairman Rhea calling the report “confidential.”
News Alert: June 25
NYCHA Hires Group to Manage Google Presence
The New York Post reports that the New York City Housing Authority has contracted with a Seattle-based firm “that specializes in suppressing negative Google-search results to ‘manage’ the authority’s image online.”
Click here for the full story.
News Alert: June 24
Via Verde’s “ Socially Conscious” Architecture Internationally Lauded
The international edition of ArtInfo has published a piece extolling the “socially conscious” architecture of the new Via Verde complex in the South Bronx.
Completed in April of this year, Via Verde, or "The Green Way," is the result of a project six years in the making. In 2006, the New York City HPD teamed up with the AIA New York to launch an international design competition for an affordable and sustainable housing development on a plot of city-owned land. The two-stage New Housing New York competition attracted 32 submissions and narrowed the contest down to five finalists. The winning team paired New York-based Dattner Architects, known for their work with non-for-profit clientele, with Grimshaw Architects, an international practice acclaimed for its more avant-garde, high-end commissions. Together with co-developers Phipps Houses and Jonathan Rose Companies, the two firms drafted a plan to convert a skinny patch of former brownfield into a stunning declaration of the future of affordable housing.
Click here for the full article.
News Alert: June 22
Inwood Building Receives $21.1M Rehab Financing
The 72-unit building at 552 Academy Street in Inwood has received $21.1 million to finance substantial upgrades. The project will be a partnership between HPD, Community League of the Heights (CLOTH), Enterprise Community Investment, Inc., Alembic Community Development and Capital One Bank.
CLOTH, a Washington Heights-based community nonprofit, and Alembic will be spearheading the rehab work on the building which was vacated by the City in 2011 due to hazardous conditions.
During the construction period Capital One Bank will provide a loan of $14.8 million. Of the approximately $21.1 million in permanent financing, Enterprise is syndicating $16.8 million in Low Income Housing Tax Credit (LIHTC) which were provided by HPD; Capital One Bank was the investor. HPD also provided $1.8 million in federal HOME funds. Council Member Ydanis Rodriguez provided $1 million in Reso A funding, JP Morgan Chase provided a $1 million dollar permanent loan, and $370,000 in developer equity was also contributed.
Click here for the full press release.
News Alert: June 22, 2012
Domino Sugary Factory Affordable Housing Uncertain
The New York Daily News reports that the new owners of the Domino Sugar Factory are noncommittal about including affordable housing in their development plan for the site. Two Trees Management issued a statement that failed to convey any plans to include affordable housing. Two Trees recently purchased the site from the Community Preservation Corporation (CPC) in a transaction which has triggered threats of a lawsuit from the CPC’s partner, Katan Group.
The CPC and the Katan Group originally purchased the 12-acre site in a $160 million deal helped that courted city and community support via plans to develop affordable housing. However the affordable housing component “was only detailed in a Memorandum of Understanding with the city and wasn’t legally binding.”
Click here for the full article.
News Alert: June 22
Willets Point Plan Criticized for Delayed Housing Component
The Queens Tribune reports that while the $3 billion Willets Point development plan announced last week could include 5,500 residential units, of which 35 percent would be designated affordable housing. However it is not expected that housing component of the project will not be built until 2025.
The build-out timeline met with some criticism. Former Borough President Claire Shulman, while supportive of the project, posited that “maybe we could use affordable housing before 2025… we’re very short on affordable housing in that part of Queens.”
In addition:
Michael Rikon, an attorney representing Willets Point United in the group’s fight against the use of eminent domain at Willets Point, also questioned the project’s housing proponent. “They promised affordable housing and that was a complete lie,” he said. “It won’t be done until 2025, and no one will hold them to that.”
However, City Economic Development Corp. President Seth Pinsky countered that “if the developers did not fully follow through with the project – including the affordable housing component - Related Companies and Sterling Equities Inc. would have to pay a $35 million penalty. “
Click here for the full article.
News Alert: June 21, 2012
Clash Develops Over Suffolk County Affordable Housing Plans
A dispute has arisen between the Town of Southampton and a local civic group over the composition of a planned affordable housing project in Riverside. The Flanders, Riverside and Northampton Civic Association (FRNCA) opposes the development of single-family rentals, preferring instead that the focus be placed on affordable home ownership. The properties had previously been seized by Suffolk County for non-payment of back taxes and then transferred to Southampton Town’s stewardship.
The FRNCA states that the group does not opposed affordable housing, but rather prefers a home ownership model over a rental model in order to foment a stronger connection to the community. The group also argues that the proposed property tax-exemption applied to the rental plans placing unjust burdens on existing property owners.
Click here for the full article.
News Alert: June 21
Citigroup and L&M Development Team Up for Harlem Complex
Bloomberg.com reports that Citigroup and L&M Development Partners have purchased the 1,800-unit Savoy Park apartment complex for more than $210 million. The transaction resolves the delinquent debt carried by the property's former owners, AREA Property Partners LP and Vantage Properties LLC.
The rent-regulated complex of seven apartment buildings between 139th and 142nd Streets in Harlem will remain as affordable housing, according to a statement today by the buyers.
Vantage and AREA paid $175 million for Savoy Park in 2006 and borrowed against the property the following year, adding $367.5 million of debt, including a $210 million senior mortgage that was packaged into bonds and sold to investors. The joint venture was unable to raise lease rates at the rent-regulated property high enough to cover the debt service, prompting a transfer in 2010 of the senior loan to a so-called special servicer, according to data compiled by Bloomberg. Special servicers negotiate with distressed-property owners on behalf of commercial-mortgage bondholders.
Vantage Properties has been criticized for aggressive attempts to remove tenants from rent-regulated apartments within its portfolio in order to raise rents.
The complex, which was valued at $420 million in 2007, was appraised at $153.3 million in 2011, Bloomberg data show.
Click here for the full story.
News Alert: June 21
HUD Releases Smoke-Free Housing Tools
The U.S. Department of Housing and Urban Development (HUD), in partnership with the U.S. Department of Health and Human Services (HHS), has launched a new set of tools "to encourage and guide private owners of federally assisted multifamily housing and public housing authorities to adopt smoke-free policies to protect residents from the dangers of second-hand smoke and to reduce property maintenance costs."
The new Smoke-Free Housing Toolkits can be used by residents, multifamily housing managers/owners, including public housing authorities, to promote healthier housing. The owner’s toolkit includes HUD’s guidance to public housing authorities and multifamily housing owners/managers, such as: a guide to implementing no-smoking policies, a sample resident survey, frequently asked questions, and other useful resources. The residents’ kit includes a going smoke-free guide, a home smoke-free pledge kit, and additional education materials about second-hand smoke.
Click here for the full press release.
News Alert: June 20
NYS Assembly Passes NYHC-Backed Article 5 Tax Abatement Bill
The Assembly passed A.9498 (Lopez), the NYHC backed Article 5 Tax Abatement bill. The Senate moved their bill S.6480 (Young) back in April, and the bill now moves to the Governor's desk for his consideration and hopefully his signature.
The legislation would allow local governments the option to extend property tax abatements to existing affordable housing projects under Article 5 – predominantly project based Section 8 developments built in the 70’s and 80’s, plus several USDA Section 515 developments.
This is the culmination of the combined efforts of the NYHC community and its Young Leadership Council (YLC) over the past year. The bill now moves to the Governor's desk for his signature.
Many project-based Section 8 projects have tax abatements under Article 5 of the NYS Private Housing Finance Law. The maximum abatement term authorized by the law is 40 years and since many projects were built in the 70's and mid 80's, most will soon be approaching the end of the permissible term of the current Abatement. State law does not provide an authorization for extension of the tax abatement. Thus, at expiration an owner will pay unpredictable real estate taxes based on assessed valuation, which will provide them with inducement to opt out, rather than stay within the affordable housing system.
Many, if not most, simply will not be able to afford to pay a tax based upon traditional valuation processes, while maintaining the project under Article 5 and Section 8.
It is our experience that the tax assessment process does not take into consideration the nuances of affordable housing. In fact, its mission is the collection of revenue, not the preservation or production of affordable housing. In particular, with Section 8 projects, there is a history of assessors failing to consider the US Department of Housing and Urban Development's (HUD) Real Estate Assessment Center ("REAC") and the federal requirement that project owners spend funds to meet project specific needs to maintain physical condition standards required by HUD through REAC.
If you go back to the beginning of the subsidy programs, the reasons for the Abatement were federally required, to evidence financial feasibility in order to obtain the subsidy. One of the requirements of financial feasibility was providing to HUD proof that a project has an Abatement that is an objective predictable shelter rent percentage going forward, not a subjective unpredictable annual assessment process.
The New York Housing Conference, including our Young Leadership Council support proposed legislation by Senator Catharine Young (Senate Bill Passed April 18, 2012) and Assemblyman Vito Lopez to amend Section 125 of the Private Housing Finance Law to allow the local legislative body of any municipality to grant an additional tax exemption period for a term of fifty years, or until such time as the project is no longer operated under the restrictions and for the purposes set forth in Article 5.
A similar authorization to extend real property tax exemptions for limited profit and limited dividend housing projects under Article 2 (Mitchell Lama Tax Abatement) was enacted into law on August 19, 2003 as Chapter 389.
News Alert: June 19
Via Verde Opening Attracts Local and National Luminaries
The official ribboncutting to mark the opening of the Via Verde affordable housing development in the South Bronx was attended by Mayor Bloomberg, HUD Secretary Shaun Donovan, HDP Commissioner Mathew Wambua, HDC President Marc Jahr and NYS HCR Commissioner/CEO Darryl Towns. The project provides 151 rental and 71 co-op mixed-income units.
Permanent financing sources for the Via Verde affordable rental portion included an HDC first mortgage of $4.37 million, as well as $12.84 million in subsidy under its New Housing Opportunity Program (NewHOP). HPD provided $2.52 million in federal HOME funds and $9.77 million in City Capital funds. The Federal Home Loan Bank provided $1.9 million in AHP funds, and NYSERDA provided $380,000 in funding. HCR provided $7 million in Low Income Housing Tax Credit (LIHTC) equity. HPD provided $25 million in LIHTC equity. Phipps provided $1 million in Brownfield Cleanup Program equity for site remediation. An additional $2 million of developer equity was also contributed.
Permanent financing sources for the Via Verde cooperative portion included an HDC first mortgage of $5.83 million, and HPD provided $9.1 million in City Capital funds along with $712,630 in federal HOME funds. HCR provided $2.12 million in grants, through the Affordable Housing Corporation (AHC), to subsidize the purchase of the 70 co-ops, and up to $4.7 million in SONYMA first-time homebuyer, low-cost fixed-rate mortgage financing. The Bronx Borough President’s office provided $1 million in Reso A funds and Councilmember Arroyo provided $500,000 in Reso A funds. NYSERDA contributed an additional $187,331. Sales proceeds of $7.73 million and additional developer equity of $3.12 million will come in at permanent conversion. The developers provided $1.7 million of Brownfield Cleanup Program equity for site remediation.
In September, the New York Times' Michael Kimmelman profiled the Via Verde development as not only "handsome" architecture but a structure that "goes out of its way to be healthy". The project paired Jonathan Rose and Phipps Houses with Dattner Architects and London-based Grimshaw Architects.
Click here for the full press release.
News Alert: June 19
Atlantic Yards Protest Planned for Barclays Center Opening
Local opposition groups are planning a protest of the Atlantic Yards development plan outside the Barclays Center during its opening night in September. Jay-Z is scheduled to perform.
Opposition to the project centers on promises of affordable housing and job creation that may not fully be realized.
Click here for the full article.
News Alert: June 15
House Subcommittee Hears Tax Credit Testimony
The NCSHA.org blog reports that the Select Revenue Measures Subcommittee of the House Ways and Means Committee held a hearing on June 8 "to discuss the framework Congress should use to evaluate expiring tax provisions, otherwise known as tax extenders; the principles of good tax policy that Congress should apply during this evaluation; and the specific metrics against which Congress should test the merits of particular provisions."
Aaron Gornstein, Undersecretary for the Massachusetts Department of Housing and Community Development, focuses his testimony on the efficacy of the Housing Credit, New Markets Tax Credit (NMTC), Empowerment Zone Bonds, and Build America Bonds to create jobs and grow the economy.
As the House considers tax reform measures, he urged members of Congress to “recognize the tremendous accomplishments of the Low Income Housing Tax Credit program and ensure its continued success.” In particular, Gornstein highlighted the Housing Credit’s support for vulnerable populations by describing Massachusetts’ focus on housing for homeless veterans.
... Gornstein urged Congress to pass H.R. 3661, which would make permanent the temporary 9 percent floor for volume cap Housing Credits and create a new 4 percent floor for volume cap Housing Credits used for acquisition. In advance of the hearing, NCSHA and 21 other affordable housing organizations sent a letter to Tiberi and other Subcommittee members emphasizing the importance of the legislation and the need for quick passage.
Click here for the full blog entry.
News Alert: June 15
Flushing Businesses Lament Macedonia Plaza Project
The Daily News has published a story concerning the concerns of Flushing businesses in light of the planned 14-story Macedonia Plaza project, which will add 143 affordable units to the Flushing neighborhood. The concerns revolve mainly around parking.
Click here for the full article.
News Alert: June 15
$25M Financing Announced for 145-Unit Borinquen Court Rehab
NYC HDC, HPD and the Brownfield Cleanup Program has partnered to provide $25.2 million towards the rehabilitation of Borinquen Court in the Bronx. The "financing includes $13.5 million in HDC tax-exempt bond construction financing. HPD provided $3.9 million subordinate financing and $7.4 million in Low-Income Housing Tax Credit (LIHTC) equity. The state’s Brownfield Cleanup Program is providing $1.3 million in Brownfields Tax Credit Program (BCP) equity."
Borinquen Court is a seven-story, 145-unit development serving households earning no more than 60 percent of the Area Median Income (AMI), currently $46,080 for a family of four.
Click here for the full press release.
News Alert: June 14
Study Shows Affordable Housing Bolsters NY Economy
A NYSAFAH study concludes that affordable housing in New York State "creates 31,800 jobs during construction and sustains 5,650 permanent jobs each year".
Uncovering the economic benefits of affordable housing, the study reveals that the industry leverages approximately $1.10 in private investment for every dollar of public investment each year. The affordable housing sector also generates about $2.6 billion in economic spinoff activity during construction while sustaining $650 million in annual economic spending on local goods and services and building maintenance.
Click here to access the report.
News Alert: June 13
EDC Calls for Central Park North Proposals
The NYEDC announced they are seeking proposals to develop 85,000 square feet of affrodable residential, community and retail space on Central Park North. The 13,500 square foot site is currently a gas station.
The city does not currently own the space, but maintained the right to reacquire the property as part of the 1996 deed of sale to the current owner.
Click here for the full article.
News Alert: June 12
FHFA's LIHTC Lending Goals in Play
Novogradac & Co. report that:
The Federal Housing Finance Agency (FHFA) today released for comment proposed changes to its existing housing goals and housing goals for 2012, 2013 and 2014. The proposed rule says the low-income housing tax credit (LIHTC) market has recovered and the Office of Management and Budget has forecasted an increase in LIHTC equity investments. As such, FHFA says that as LIHTC investments return to pre-2008 volumes, opportunities for the Fannie Mae and Freddie Mac to finance LIHTC properties will increase and, therefore, goals-eligible units should increase.
News Alert: June 11
Morgan Stanley Issues $7.5M Loan to Distressed Bronx Properties
Crain's New York reports that Morgan Stanley has agreed to provide $7.5 million in interim financing to help start the rehabilitation of four physically rundown, financially overleveraged multifamily buildings in the Bronx.
The money will be used to pay down the $750,000 in back property taxes, municipal liens and emergency repair expenditures that the previous owners amassed over the years, according to John Crotty, founding partner of Workforce Housing Advisors.
"The loan allows us to take the first step in turning these buildings around and fixing them," said Mr. Crotty, adding that his firm first bought the note on the buildings, which have a total of 120 units, and foreclosed on them in order to take over the properties earlier this year.
All four of the properties are in the city Department of Housing and Preservation and Development's Alternative Enforcement Program, which targets the 200 most distressed multifamily residential properties in the city. Additionally, the previous owner of 2239 Creston Ave. and 2323 Creston Ave. was on the city public advocate's worst landlords list. Combined, both buildings have more than 1,000 violations, according to the watch list's website, which currently indicates that work is now being done at the buildings.
Additionally, the city Department of Housing Preservation and Development expects to provide financing, in the form of low-interest loan, low-income housing tax credits and other conventional loans, to pay for the actual rehabilitation of the buildings and to ensure that the units there remain affordable. Mr. Crotty said the firm is still working out the total cost to fix the buildings, but noted that the rehab could cost roughly $100,000 a unit.
Click here for the full article.
News Alert: June 11
City Launching Online Applications for Housing Lotteries
Starting tomorrow, the city will begin taking applications online to rent or buy an apartment in two new developments – the Westwind Houses in East Harlem and Richmond Place in Richmond Hill, Queens – via a new Web site, www.nyc.gov/housingconnect.
In the fall, the site will be expand to include all new affordable housing development projects in New York City.
The city receives approximately 160,000 applications each fiscal year for about 4,000 affordable apartment units. Applications are expected to increase although processing times are projected to be substantially shortened.
Click here for the full article.
News Alert: June 10
CPC Reaches Tentative Domino Sugar Factory Deal
The New York Daily News reports that Two Trees Management Corp. has offered to buy the former Domino Sugar factory site for $160 million.
However, one of the co-owners of the site - Katan Group - has announced its intention to block its partner, the Community Preservation Corp., from closing the deal.
Click here for the full article.
News Alert: June 8
Chelsea Project Nets $240M Construction Loan
Related Companies has closed on $240 million in construction financing for the 386-unit development planned at 500 West 30th Street. The project will include 77 permanently affordable units via the City’s Inclusionary Housing program. At completion, the building will be 32 stories tall.
The unit distribution for the affordable portion of the building will yield 27 studios, 32 one‐bedroom apartments, and 18 two‐bedroom apartments.
The total development cost for the 500 West 30th Street project is approximately $240 million. The project will be financed with $188.4 million in tax exempt and/or taxable bonds provided by the New York State Housing Finance Agency (HFA), an agency within New York State Homes and Community Renewal (HCR). Additionally the project will receive an estimated allocation of $11.28 Million in Low Income Housing Tax Credits from HFA.
Click here for the full press release.
News Alert: June 8
Construction Begins on Columbia County Complex
Work began Friday on the Valatie Senior Citizen Housing project in Columbia County, which was awarded nearly $1.7 million last year through New York State's Regional Economic Development Council .
The 32-unit development for low-income seniors and people with physical disabilities in Valatie will include a community room, laundry room, computer room, and a senior center within walking distance.
News Alert: June 7
R4 Capital Nearing Close of $100M LIHTC Fund
R4 Capital has closed on the first $80 million of a $100-million Low-Income Housing Tax Credit fund. The multi-investor fund will finance 1,458 affordable housing units amongst 15 properties in 10 states, including Washington D.C.
Meridian Investments Inc. acted as placement agent for the fund, and Nixon Peabody LLP served as legal counsel in forming the fund. R4 Capital stated that 73% of the portfolio represents projects where an R4 Capital senior executive had completed prior transactions with a developer or consultant involved in the new R4 Housing Partners Fund.
Click here for the full press release.
News Alert: June 7
Chelsea Market Expansion Garners Conditional Community Board Approval
Community Board 4 voted to conditionally support a plan to expand Chelsea Market based on the developer's commitment to "contribute to affordable housing space in the neighborhood equivalent to 27 percent of the square footage of the expansion — which could be around 81,000 square feet of housing somewhere else in the neighborhood."
Developer Jamestown Properties' plan to expand the historic market by roughly 300,000 square feet on its Ninth and 10th Avenue sides would require City Council approval to place Chelsea Market into the Special West Chelsea District, a zoning area created to accommodate the High Line.
Click here for the full article.
News Alert: June 6
FHA May Raise Multifamily Mortgage Insurance Premiums
HousingFinance.com reports that the Federal Housing Administration (FHA) "issued a notice last month that it will be increasing mortgage insurance premiums (MIPs) in 2013" on multifamily transactions by 15 basis points. Currently, the MIP tacks on an additional 45 basis points (bps) to each FHA loan on top of the interest rate.