LIHC Investment Group, one of the nation’s largest landlords committed to preserving affordable housing, Lucas Family Holdings and Rockport Mortgage Corporation today announced the closing of a $35 million FHA Section 223(f) refinance loan dollars for Risley Dent Towers, a three-building 248-unit property that supports low-income families in Brooklyn.
As part of the loan refinance, the owners agreed to enter into a new 20-year, Section 8 contract with HUD, extending the affordability of the property for another 22 years, through 2044. Under Section 8, residents generally contribute less than 30% of their income adjusted for rental charges.
“Like many properties built under Mitchell-Lama, Risley Dent is an important and scarce source of affordable apartments, but its physical needs have grown over the past 40 years,” said Andrew Gendron, Director, LIHC Investment Group. “We are delighted to have found a solution that extends Risley Dent’s affordability through 2044 while generating the funds needed to improve residents’ quality of life and restore the property’s position within the community. »
“We are extremely grateful to HUD for their creativity and especially to HUD’s Northeast Region team – Dean Santa, Margaret Wingate and Stacey Ashmore – for their unwavering commitment to this complex preservation.”
“Residents of Risley Dent Towers deserve to live in decent, safe and affordable housing, and this team has worked tirelessly to make that happen,” said Alicka Ampry-Samuel, HUD regional administrator for New York and New Jersey. “HUD Northeast Region staff and HUD Federal Housing Administration Mortgage Insurance were instrumental in helping to complete these renovations. I am proud that HUD can provide residents with the financial stability that a 20-year Section 8 housing allowance contract provides. Congratulations to everyone involved.
“With the shortage of safe and affordable housing being felt nationwide, it is critical that the housing industry do everything possible to preserve the affordable housing we have now,” said Dan Lyons, managing partner of Rockport Mortgage. “HUD’s preservation programs enable owners to extend the useful life of their properties, improve the quality of life for residents, and ensure these properties remain affordable for years to come. We are pleased to have worked with all parties involved to make this refinancing a success.
The funding will be used to pay down existing debt, fund replacement reserves, and make major improvements and repairs to the property to improve and improve the quality of life for residents. These upgrades include, but are not limited to, remodeled kitchens and bathrooms, installation of new luxury vinyl floor tiles in units and common areas, extensive lobby renovations – including contemporary storefronts and porcelain tile upgrades, installation of a property-wide security camera and phone intercom. roofing systems and renovation.
The rehabilitation will be overseen by BluFin Development and The Amistad Management Corporation will serve as property manager.
Risley Dent Towers is located in the Bedford-Stuyvesant neighborhood of New York City and is adjacent to the neighborhood’s main thoroughfare, Fulton Street. According to property records, Risley Dent Towers was the last building to receive capital funding under the state’s Mitchell-Lama program in 1978. The property was acquired by the late William R. Lucas in the mid-1980s. 1980 from the Jackie Robinson Development Corporation, and LIHC Investment Group acquired a stake in 2020. Since then, LIHC and the Lucas family have been working with HUD on a plan to preserve and rehabilitate the property.
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