Mount Hope Housing Company, NCV Capital Partners, Lemor Development Group and the Community Preservation Corporation have closed on a $100 million transaction to preserve 515 units of affordable housing in Bronx.
The 13-building portfolio is in the Mount Hope neighborhood between E. 175th Street and East Burnside Avenue.
In Q1 2019, the apartments, ranging from studios to five-bedroom units, will be comprehensively renovated. This will include reconstruction of kitchens, bathrooms and energy efficiency upgrades.
The project is being financed by equity investments from NCV and Lemor. CPC and its lending partner Amalgamated Bank are providing a $30 million construction loan. CPC is also providing a State of New York Mortgage Agency-insured permanent loan through a partnership with the New York City Retirement Systems.
Additionally, the New York City Department of Housing Preservation and Development is providing a property tax exemption and low interest financing to ensure affordability.
The property will remain subject to a 40-year HPD regulatory agreement. This will ensure that the units remain affordable for current and future tenants for the next four decades. Currently, 97% of rents in all of the apartments are affordable for New Yorkers earning 60% of the area median income or lower.
Mount Hope Renaissance is part of Mayor Bill de Blasio’s New York’s Housing New York 2.0. The plan has set a city goal of producing 300,000 affordable homes by 2026.