Five Section 8 Projects Get $135M In Financing
Mayor Bill de Blasio, the NYC Department of Housing Preservation and Development, NYC Housing Development Corp, the Department of Housing and Urban Development, Tahl Propp Equities, Bellwether Enterprise and Enterprise Community Investment closed a $135M deal to finance, acquire and rehabilitate five Section 8 affordable housing properties in Harlem—the Gladys Hampton Houses (left), New West I and II (center), and Riverside I and II (right)—totaling 18 buildings and 549 units.
Not only will the deal keep the units affordable for the next 40 years, but residents will also be able to remain in their homes during the renovations, which will include roof replacements, updates to common areas and apartment interiors, and new windows, boilers, kitchen cabinets, appliances, flooring and bathroom fixtures. Some units will be reserved for homeless individuals and families upon vacancy.
HPD provided a $15.2M loan, and $35.9M in equity, through its low-income housing tax credits program. In addition, the HDC provided tax exempt bonds that resulted in $62.3M in construction financing from Bellwether Enterprise, which used Fannie Mae’s Reduced Occupancy and Rehabilitation program to underwrite a credit enhancement for the bonds.
De Blasio has been trying to create and preserve 200,000 affordable-housing units as part of his 10-year housing plan. Since 2013, Tahl Propp Equities president and co-founder Joseph Tahl says, the city has been able to preserve 1,500 affordable units across Harlem, with another 1,000 units under construction. If Hizzoner wants to hit that 200,000 mark, he needs a lot more deals like this one.