NEW YORK, Oct. 22, 2019 (GLOBE NEWSWIRE) -- Councilwoman for the 2nd District of New York City Carlina Rivera, Center Development Corporation (CDC) and LIHC Investment Group welcomed local and federal housing officials and residents to The Boys’ Club of New York today, October 22, 2019 to celebrate the commencement of the preservation and rehabilitation of project-based Section 8 housing in the East Village.
The event’s featured speakers included Councilwoman Rivera and Department of Housing Preservation and Development Associate Commissioner Kim Darga, and before / after photos of some of the already renovated units at 199 Avenue B were displayed by CDC. The building is one of several Section 8 properties being preserved as the result of an agreement between CDC, LIHC, New York City Department of Housing Preservation and Development (HPD), New York City Housing Development Corporation (HDC) and the US Department of Housing and Urban Development.
“We are in the middle of a housing crisis in New York City, and the creation and preservation of affordable housing in the Lower East Side has been my priority as a Council Member just as it was when I was a community organizer. I am proud to support CDC, LIHC, and HPD in the preservation and rehabilitation of the affordable units at 199 Avenue B. By preserving and rehabilitating these 243 units, we are guaranteeing affordable housing units for hundreds of families. This is a bold solution for ensuring affordability in our community for decades to come, and I look forward to working on similar projects in the future,” said Councilwoman Carlina Rivera.
HPD Commissioner Louise Carroll added, “One of the most limited resources in the City of New York is vacant and viable land. The Housing+ program allows us to maximize the use of available land in existing developments all while preserving affordability - a significant win for this community and the city as a whole. I want to thank Councilmember Carlina Rivera for her partnership, and LIHC Investment Group and Center Development Corporation for their commitment to preserving desperately needed affordable housing.”
The agreement, which was announced last April, covers 243 units co-owned by CDC and LIHC in the East Village; guaranteeing they will be maintained as affordable for individuals and families whose income does not exceed 50 percent of AMI for at least the next 40 years. The 243 units are spread across nine distinct buildings around Tompkins Square Park, in one of Manhattan’s most sought-after neighborhoods. The preservation was possible, in part, through tax-abatements under Article XI as well as $50 million in HUD-insured financing provided by Greystone, the country’s #1 HUD lender for multifamily and healthcare loans, secured by CDC and LIHC earlier this year.
Co-owners CDC and LIHC are investing upwards of $7.5 million to make repairs and fully renovate apartments across the portfolio, for an average spend of $30,000 per unit. The renovations on display included new kitchens and bathrooms, along with upgraded flooring, drywall and the installation of LED lighting without any increase in rent to the tenants. Also, approximately 25 units will have modified bathrooms and kitchens pursuant to HPD’s “Aging in Place” program.
"From East Harlem to the East Village, we invest in affordable housing to improve people's lives and help keep our neighborhoods intact," said Andrew Gendron, Principal at LIHC Investment Group. "Section 8 housing is exceedingly vulnerable to neglect and loss, which is why we are so pleased to have the support of HPD, HDC, HUD and our partners in pursuing preservations that deepen affordability and allow for renovations so these homes can be maintained far into the future."
CDC and LIHC have co-owned the aforementioned properties since 2004 and have administered and maintained them as deeply affordable housing. They were originally part of a larger portfolio of 25 buildings and lots developed by CDC more than 40 years ago as a Section 8, HUD-financed, rehabilitation project.
About Center Development Corporation
The first Center company, the Center for Housing Partnerships (CHP), was established in 1971 to develop residential and mixed-use real estate projects in New York’s inner-city communities. It was founded by William N. Hubbard, Chairman and President of Center Development Corporation. As an attorney and advocate of affordable housing in East Harlem in the late 1960’s, Mr. Hubbard witnessed the catastrophic devastation caused by disinvestment in that community. CHP was formed to address the problems of urban decay in East Harlem and other communities. From the beginning, the company emphasized rehabilitating existing housing stock when possible, rather than demolition and new construction. This approach improves neighborhoods, while conserving resources and preserving their architectural and historic integrity. In 1972, CHP was designated a “Project Rehab” sponsor by the U.S. Department of Housing and Urban Development and became an associate of the National Housing Partnership. Since then, the company has been involved in the development, ownership and management of more than twenty projects in the greater New York metropolitan area, with a total replacement value in excess of $200 million. In 1989, CHP formed Center Development Corporation – a full-service real estate organization designed to carry out future development activities.
About LIHC Investment Group
Led by Charlie and Andrew Gendron, LIHC Investment Group has grown to become one of the most respected real estate investment groups in the industry. The firm holds an ownership interest in 35,000 units of multi-family affordable housing nationwide and is ranked No. 3 on Affordable Housing Finance’s list of companies completing substantial rehabilitations. Over the years, LIHC has transacted with over 4,000 Limited and General Partners to acquire well over $5.5 billion in holdings, primarily in metropolitan areas such as New York City and Boston. Our expertise in tax consequences, partnership law, federal regulations and preservation transactions means we know how to work creatively and deliver results that benefit owners, investors, tenants and the community. To learn more, visit: https://lihc.com.
About Greystone
Greystone is a real estate lending, investment, and advisory company with an established reputation as a leader in multifamily and healthcare finance, having ranked as a top FHA, Fannie Mae, and Freddie Mac lender in these sectors. Our range of services includes commercial lending across a variety of platforms such as Fannie Mae, Freddie Mac, CMBS, FHA, USDA, bridge and proprietary loan products. Loans are offered through Greystone Servicing Company LLC, Greystone Funding Company LLC and/or other Greystone affiliates. For more information, visit www.greyco.com.
PRESS CONTACT:
Karen Marotta
Greystone
212-896-9149
Karen.Marotta@greyco.com