In October 2009, CHPC board members the Local Initiatives Support Corporation (LISC) NYC, along with partner Belmont-Arthur Local Development Corp (BAALDC) acquired a 164-unit senior housing development using financing provided by the NY Acquisition Fund and originated by LISC.
The building, located at 1201 Findlay Avenue in the Crotona East section of the Bronx, is rich in historical and architectural detail, having been constructed in 1920, originally as a hospital. It was converted to senior housing under HUD’s Section 202 program in 1978, but fell into disrepair in recent years, prompting the U.S. Department of Housing and Urban Development (HUD) to foreclose. LISC NYC worked with BAALDC to gain the support of the tenants and key local community members, and to assemble a financing plan that would allow it to become the successful bidder at the foreclosure auction.
The $4.5 million NY Acquisition Fund loan included funds to cover predevelopment costs, and a capitalized operating deficit reserve, which allowed BAALDC to sustain project operations while bringing it up to the standards needed to access payments from the Project-Based Section 8 rental subsidy contract.
Construction is scheduled to begin in 2011, and repairs will include new roofing, which includes two green sub-roofs; new energy efficient boilers; replacement of all windows and doors; lead and asbestos removal; exterior façade work; and complete refurbishment of the apartments. Permanent financing will be provided by a combination of Low Income Housing Tax Credit (9%) equity, City subsidy via the Dept of Housing Preservation and Development (HPD) and the Bronx Borough President, and Federal Home Loan Bank funds.
BAALDC was recently awarded a $50,000 grant through the competitive TD Bank Housing for Everyone competition, to implement various green and energy-efficiency features in the renovation. The project will retain its 20-year federal Project-Based Section 8 rent subsidy contract, which will enable it to continue serving very low-income tenants.
The acquisition and preservation of Findlay Plaza by a qualified, community-based nonprofit is part of LISC NYC’s broader Preservation Initiative, which seeks to revitalize and preserve distressed HUD-subsidized rental projects and other at-risk housing, often through the acquisition and long-term stewardship of one of our community development corporation partners. LISC NYC’s Preservation Initiative is supported partly by a generous grant from JPMorgan Chase.