The New York State Housing Finance Agency approved an $18 million tax-exempt bond financing at its monthly board meeting last week.
The Related Cos. , a real estate developer, in partnership with the nonprofit Metropolitan New York Coordinating Council on Jewish Poverty, will use the proceeds to acquire and renovate a 125-unit apartment complex in northern Manhattan called the Caroline Apartments. All of the apartments are reserved for low-income tenants who use federal Section 8 housing vouchers.
The developer agreed to set aside 20% of the units for special-needs tenants such as the elderly or disabled, which would be a reduction from the 26% currently set aside for such tenants. The nonprofit’s role will be to provide social services to the tenants and to help train property managers. The project will cost $26.7 million and benefit from federal low-income housing tax credits as well as a 420-c property tax abatement from New York City.
Banc of America Securities LLC will underwrite the debt, which will be sold as variable-rate demand bonds. Hiscock & Barclay LLP is bond counsel. Freddie Mac will provide credit enhancement. The bonds could sell by the end of the month, though a date hasn’t been set yet.
