CPC Provides Permanent Financing for Seven Renovated Properties in Harlem

CPC's Bronx office recently closed a $681,037 permanent loan to refinance seven gut renovated Harlem buildings sponsored by the NYC Dept. of Housing Preservation and Development (HPD) and the U.S. Dept. of Urban Housing and Development (HUD) under HPD's 203K program focused on neighborhood revitalization.

Each of the scattered three-story buildings includes between two and six units for a total of 26 fully occupied residential units ranging in size from studios to three-bedrooms.  The project is complete and fully rented. Monthly rents for the vacant units were affordable to individuals earning 80% of the area median income (AMI) in accordance with HPD's 203K program provisions, while existing tenants paid substantially below-market rents, except in cases where tenants qualified for Section 8 vouchers.

Financing for the project's gut renovation consisted of $4,723,762 in HUD 203K funds administered through HPD in conjunction with a $669,894 construction loan from BPD Bank. CPC's permanent loan, which will be sold to the New York City Pension Funds, will refinance the remaining balance of BDP Bank's construction loan and will be SONYMA insured with a 15-year, fixed-rate term.  

The borrower, Central Harlem 203K HDFC, is an affiliate of Community Assisted Tenant Controlled Housing, Inc. (CATCH), a non-profit organization that works to transform distressed NYC buildings into decent, affordable resident-controlled housing.  CATCH was formed in 1991 by a number of respected housing, community development, and community service organizations including United Housing Foundation, Urban Homesteading Assistance Board (UHAB), Lawyers Alliance and the Parodneck Foundation.

To finance your project in the Bronx or Manhattan regions, please contact Bruce Dale at (718) 601-6600.