14A — June 14 - 27, 2019 — Creative Financing — M id A tlantic
Real Estate Journal
C reative F inancing
EWYORK, NY — The Community Preser- vation Corporation Straight-to-permfinancing allows senior development tomake repairs &maintain affordability CPC, Project FIND, JOE NYC, HPD announce closing of $6MFannieMae affordable housing loan N tive director, Project FIND.
rehabilitation and preserva- tion of The Hargrave House, a 113-unit, affordable senior housing development located at 111 West 71st St. in Man- hattan. The financing will help pay for renovations and upgrades to the property, and because the project is being structured under HPD’s Vol- untary Inclusionary Housing (VIH) program, the units will be preserved as permanently affordable. The CPCMAH loan provided an expedited closing process and a product that is tailored to the complexities of the preservation of regulated affordable housing.
“Senior citizens are one of our fastest growing popula- tions, and are often living on fixed-incomes that aren’t keep- ing pace with the rising costs of living. This project ensures that the seniors at Hargrave House will continue to have housing that’s affordable, safe, and provides the services they need to age in place grace- fully,” said Brandie Moreno , mortgage officer at The Com- munity Preservation Corpora- tion. “It was great to have a product like the Fannie Mae MAH that gave our borrowers the terms and process tailored to the unique requirements of
subsidized, affordable housing projects. My thanks to HPD, Project FIND, and JOE NYC for their partnership and col- laboration.” “The VIH program will pro- vide the basis to achieve many core organizational goals: per- manent affordability, ample reserves to fund long term capi- tal upgrades, and a future pool of resources to allow for deep rent skewing and new housing acquisitions. The team at CPC and HPD worked creatively and with diligence to structure a loan product and transaction that hit all of the right notes,” said David Gillcrist , execu-
“CPC and HPD have long been strong supporters of JOE NYC. Hargrave House is a unique property which pro- vides much-needed affordable housing to seniors on Manhat- tan’s Upper West Side. We commend Project FIND on completing this transaction and we look forward to working with David and his staff to en- sure the long term affordability and quality of Hargrave,” said Peter Madden , executive di- rector, JOE NYC. The project is being spon- sored by partners Project FIND and JOE NYC. Project FIND is a nonprofit organization that provides low-, moderate-in- come, seniors, including home- less, with services and support. JOE NYC is a joint ownership and asset management initia- tive for non-profit community development corporations that own affordable housing assets in New York City. The partnership has opted into HPD’s VIHprogram, which allows the Hargrave House project to sell development rights in exchange for perma- nently extending the current affordability agreement with HPD that restricts the units to senior citizens at or below 80% of Area Median Income (AMI) ($58,400 annual income for a single person). Project FIND has proposed to use the pro- ceeds from the prospective sale of the density bonus to fund the long-term maintenance and operations of Hargrave House and support the organization’s mission-based work. CPC’s $6 million Fannie Mae MAH loan will finance Hargrave House’s rehabilita- tion work, allowing the project to meet the VIH program’s requirement that the partner- ship leverage private capital to fund the renovation work at the property. The scope of the renovation work will include elevator modernization, en- ergy efficiency upgrades, façade work, and lobby upgrades. As a nonprofit housing fi- nance company, CPC brings decades of experience working with nonprofit and commu- nity-based organizations like Project FIND to help provide stable, private capital as well as unique technical expertise in navigating the often complex financing structures of afford- able housing programs. CPC and Project FIND also recently partnered on the Woodstock Hotel project.
(CPC), Proj- ect FIND, the Jo int O w n e r - ship Entity New York City (JOE NYC) , and the NYC De- partment of
Housing Preservation and Development (HPD) an- nounced the closing of a $6 million Fannie Mae Multi- family Affordable Housing (MAH) loan to finance the
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