For information contact: Lucy Garrido-Mota, 718-722-6204
Catholic
Charities Brooklyn and Queens, the City and Enterprise Announce
Preservation of 1,000 Units of Affordable Housing for Low-Income
Seniors in Brooklyn and Queens
Innovative
Refinancing Package Serves as National Model for Housing Refinanced
Under HUD Section 202 Program
New York,
NY, April 30, 2008 - Catholic Charities Progress of Peoples
Development Corporation (Catholic Charities), the housing developer
of Catholic Charities Brooklyn and Queens, Enterprise, a leading
nonprofit provider of affordable housing nationwide, the New York
City Housing Development Corporation (HDC) and the New York City
Department of Housing Preservation and Development (HPD) today
announced the completion of the full rehabilitation of ten affordable
senior housing buildings located in Brooklyn and Queens. More
than just improving the structures, this has allowed for enhanced
social services crucial for the 1,300 seniors living in these
buildings. The rehabilitation was made possible by a pioneering
$170 million pooled refinancing package, which is now used as
a model throughout the country for the refinancing of housing
built under the U.S. Department of Housing and Urban Development
(HUD) Section 202 Program.
“Catholic
Charities Progress of People’s Development Corporation is
one of the largest providers of housing for low-income seniors
and families in New York City,” said Monsignor Alfred LoPinto,
Vicar for Human Services, Diocese of Brooklyn. “This refinancing
package allows us to continue our commitment to provide low-income
seniors with the highest quality housing and services, as well
as to keep them in their neighborhoods.”
“Enterprise
is committed to helping ensure that all New Yorkers have access
to affordable housing, especially the seniors who are most vulnerable
to rising rents as a result of their fixed incomes,” said
Abby Jo Sigal, Vice President and Director of Enterprise New York.
“By working with a diverse group of partners, we were able
to put together a creative refinancing package that not only helps
to keep low-income seniors in their homes, but that also allows
the money saved as a result of the refinancing to be invested
in expanded services for the residents.”
Originally
built in the 1970s and 1980’s under HUD’s Section
202 Program, the facilities were renovated with funds made available
through HDC’s Section 202 Refinancing Program. By refinancing
at a lower interest rate than the previously existing HUD mortgages,
Catholic Charities’ monthly mortgage payments were reduced,
freeing up money to pay for enhanced social services for the residents
of these buildings. The financing included $55 million in long-term
bonds issued by HDC with credit-enhancement provided by Fannie
Mae, $28.4 million in short-term bonds issued by HDC with a Citibank
letter of credit and $42.7 million of tax credit equity administered
by HPD and syndicated by Enterprise. Enterprise also provided
to Catholic Charities a $500,000 predevelopment loan for the project.
Other partners in the deal included Wachovia’s Multifamily
Lending Group which served as Fannie Mae’s seller-servicer
and Forsyth Street Advisors, which conceived the method of financing
and led the project team. Renovations began in 2006.
Roughly 1,300
low-income seniors occupy the 1,000 housing units included in
the ten properties. Many of the residents are elderly immigrants
who wish to remain in their neighborhoods where they raised their
families. Forty percent of the units are affordable to individuals
with incomes below $14,880, fifty-five percent are affordable
to individuals with incomes below $24,800 and five percent are
affordable to individuals with incomes below $39,680.
The project
is a key part of Mayor Bloomberg’s New Housing Marketplace
Plan to build and preserve 165,000 units of affordable housing
in New York City over 10 years, the most ambitious municipal housing
initiative in the country.
”Preserving
affordable housing is critical to New York City’s future,”
said HPD Commissioner Shaun Donovan. “Our seniors deserve
safe, good quality and affordable housing that allows them to
stay in their communities near their families and friends. By
developing creative financing packages, the City can preserve
and rehabilitate existing affordable housing, allowing residents
to remain in their refurbished homes, which costs significantly
less than building new housing. The Mayor’s Ten Year Plan
has a particular focus on preserving the affordability of existing
government-assisted housing like Section 202 and Mitchell Lama.
Innovation is a hallmark of the Mayor’s plan and we are
delighted to see this financing model now being adopted across
the country. Enterprise’s one billion dollar commitment
to New York City is helping us build and preserve 165,000 affordable
homes over ten years for 500,000 low and middle-income New Yorkers.”
“There
is no more vulnerable segment in our society than our elderly,”
said Teresa Bainton, New York HUD Director for Multi-family Housing.
“That is why the refinancing of these ten developments is
so important. It will ensure that these seniors remain in their
beautifully renovated homes and also have access to the services
they need in their golden years. HUD is proud to be part of this
rehabilitation and preservation project, and we are equally proud
to work with one of our most important partners, Catholic Charities.”
Marc Jahr,
President of the New York City Housing Development Corporation
said, “As our senior population ages, the need for quality
senior housing with expanded supportive services becomes all the
more imperative. Originally built using HUD’s 202 Program
– HDC’s POP refinancing will allow the ten underlying
developments to extend their usable life while preserving their
affordability for New York’s seniors. HDC is proud that
our participation will ensure that a thousand apartments are preserved
for one of New York’s most vulnerable populations. HDC and
HPD look forward to continuing to collaborate with our nonprofit
partners to ensure that all New Yorkers have access to affordable,
safe and suitable homes.”
The ten rehabilitated
buildings include: Bishop Boardman Apartments in Park Slope, Brooklyn;
Bishop Mugavero Apartments in Fort Green, Brooklyn; Holy Spirit
Apartments in Borough Park, Brooklyn; Mary Star of the Sea Apartments
in Carroll Gardens, Brooklyn; Monsignor Burke Apartments in Borough
Park, Brooklyn; Monsignor Campbell Apartments in Long Island City,
Queens; Monsignor O’Brien Apartments in Borough Park, Brooklyn;
Pope John Paul II in Bay Ridge Brooklyn; Sister Lucian Apartments
in Bushwick, Brooklyn; and St. Brendan’s Apartments in Midwood,
Brooklyn.
“Few
occasions are as gratifying to me as the kind we celebrate today,”
said Deborah VanAmerongen, Commissioner of the New York State
Division of Housing and Community Renewal. “To have been
a part of preserving what has become such an irreplaceable resource,
and to know that the lives of so many seniors have been stabilized,
makes all of the time and effort invested worthwhile. On behalf
of Governor Paterson, I would like to congratulate my colleagues
at HUD, Catholic Charities, the City of New York and Enterprise
for having the courage and commitment to preserve affordable housing
for our senior citizens.”
Speakers
commemorating the preservation and rehabilitation of the 1000
units of affordable housing today at the rededication ceremony
at the Catholic Charities Bishop Boardman Apartments included
the following people: Most Reverend Alfred LoPinto, Vicar for
Human Services, Diocese of Brooklyn; Vice President and New York
Director Abby Jo Sigal, Enterprise; President Marc Jahr, New York
City Housing Development Corporation; Commissioner Shaun Donovan,
New York City Department of Housing Preservation and Development
(HPD); Commissioner Deborah Van Amerongen, of the New York State
Division of Housing & Community Renewal (NYS HCR); and, Teresa
Bainton, the New York Multifamily Hub Director for Housing and
Urban Development (HUD).
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About Catholic
Charities
Catholic Charities Brooklyn and Queens creates a community of
caring and sharing by reaching out to the poor, the sick, and
the isolated. For over 100 years, Catholic Charities has been
providing quality social services to the neighborhoods of Brooklyn
and Queen and currently offers 183 programs and services for children,
youth, adults, seniors, the developmentally disabled, and the
mentally ill. One the largest providers of affordable housing
in New York City, Catholic Charities provides 3,000 units of housing
for low-income seniors, families, and the formerly homeless throughout
Brooklyn and Queens.
About Enterprise
Enterprise is a leading provider of the development capital and
expertise it takes to create decent, affordable homes and rebuild
communities. For more than two decades, Enterprise has pioneered
neighborhood solutions through public-private partnerships with
financial institutions, governments, community organizations and
others that share our vision. Enterprise has raised and invested
$8 billion in equity, grants and loans and is currently investing
in communities at a rate of $1 billion a year. Enterprise New
York has been working to revitalize low-income communities across
New York City since 1987. In that time, Enterprise New York has
housed approximately 70,000 men, women, and children, developed
more than 26,000 affordable homes, and committed $1.7 billion
in equity, grants, and loans to community development projects
across the city. Visit www.enterprisecommunity.org to learn more
about Enterprise’s efforts to build communities and opportunity,
and to meet some of the half a million people we have helped.
About HPD
The New York City Department of Housing Preservation and Development's
(HPD) mission is to promote quality housing and viable neighborhoods
for New Yorkers. The department is the nation’s largest
municipal housing development agency and is implementing Mayor
Bloomberg’s New Housing Marketplace Plan to build and preserve
165,000 units of affordable housing over ten years. The New Housing
Marketplace Plan is the largest municipal affordable housing effort
in the nation’s history. HPD also encourages the preservation
of affordable housing through education, outreach, loan programs
and enforcement of housing quality standards.
About HDC
The New York City Housing Development Corporation (HDC), using
both tax-exempt and taxable bonds, provides a variety of financing
programs to support the creation and preservation of multi-family
affordable housing throughout the five boroughs of New York City.
Our programs are designed to meet the wide-range of affordable
housing needs of the City's economically diverse population.
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