For over two years, tenants, organizers, advocates and elected officials battled with New York Community Bank, New York’s largest multifamily lender, to determine a path to preservation for the thousands and thousands of units of distressed and at risk affordable housing, damaged by Predatory Equity. The result, as we detailed last summer in “Breaking the Banks,” is a revolutionary “First Look” Program that allows HPD approved landlords a better opportunity to purchase overleveraged and physically damaged affordable housing in foreclosure. The details of the program were first hammered out between NYCB and advocates, including UHAB, in the Spring 2012, and currently there are at least three participating banks.
Today, HPD, Speaker Quinn, Workforce Housing Advisors (WFHA), the Community Preservation Corporation (CPC) and UHAB are pleased to announce the beginnings of a gut renovation of some of the the earliest multifamily residential buildings to be transferred to an approved affordable housing developer through the First Look program. WFHA purchased the mortgages at a discount from NYCB in October 2011, and after a comprehensive relocation process (which assured tenants the opportunity to return home following renovation), closed on a $4.7 million financing package. This package will allow the properties to be fully repaired while also ensuring that they remain affordable for the current residents for years to come.
“The deal is an example of what the City can accomplish when we work together to protect tenants’ homes,” said Speaker Christine C. Quinn. “The ‘First Look’ agreement we reached with New York Community Bank ensures the City and good developers get first crack at purchasing loans and preserving buildings, and I thank Workforce Housing Advisers, UHAB, and HPD for their hard work to save these homes.”
In her recent State of the City address, Christine Quinn proposed created a housing fund “to make bulk purchases of over leveraged housing. The city will make sure repairs get made while properties make their way through the foreclosure process. Then, we’ll transfer them to an approved developer who will keep the buildings affordable and in good condition.” This proposal is the result of collaboration between the City and housing advocates for the past year. Our idea, which we have called the Interim Facility, will build upon First Look by setting up a framework for large scale preservation of distressed housing.
539-541 E. 147th are the first two buildings in the First Look program to begin the long renovation process, but there are other buildings purchased through the program and are slated for future development. WFHA purchased mortgages in foreclosure from NYCB on 1380 University, also in the Bronx. As recently reported, Banana Kelly and Wavecrest Management also reached a deal on three properties on College Avenue. Tenants in both 1380 University and the College Avenue properties are working closely with CASA (Community Action for Safe Apartments) to ensure that they have a voice in the future of their buildings.
Another exciting victory for the First Look program took place in March 2012 when Mutual Housing Association of NY (MHANY) purchased mortgages from NYCB on four extremely distressed properties in Brooklyn. These buildings, organized by UHAB, are still winding their way through the foreclosure process. MHANY expects to become the deed holder in the next few months. Once that happens, tenants can look forward to extensive repairs and a cooperative relationship with their non-profit landlord. In the meantime, tenants, UHAB organizers, and MHANY have been meeting regularly with architects to collaborate on a plan for renovation.
The addresses of buildings that have entered the preservation pipeline through the First Look program thus far are 539-541 E. 147th Street, 1380 University Ave, and 1259, 1265, and 1269 College Avenue in the Bronx, and 230-232 Schenectady Ave, 266 Malcom X Blvd, 896 Madison Street in Brooklyn. Combined, these properties are home to over 250 families. As the Interim Facility gets off the ground and the First Look program continues to grow, we expect this number to multiply!
To read more about the upcoming renovation at E. 147th Street, read today’s press release here.