Preservation Effort Will Keep Rents Affordable for Tenants at the 13-Building Portfolio in Historic Bronx Community for Decades to Come
NCV Capital Partners (NCV), a real estate advisory and development firm, in partnership with Mount Hope Housing Company (Mount Hope), Lemor Development Group (LDG), the New York City Department of Housing Preservation and Development (HPD), and the Community Preservation Corporation (CPC) announce the closing of a $100 million transaction to preserve a 515-unit, 13-building portfolio in the Mount Hope section of the Bronx (Mount Hope Renaissance).
The Mount Hope Renaissance portfolio includes 515 affordable units spanning between East 175th Street and East Burnside Avenue, and ranges from studios to five-bedroom apartments. The comprehensive rehabilitation plan, slated to commence in the first-quarter of 2019, includes in-place reconstruction of kitchens, bathrooms and energy-efficient upgrades.
Mount Hope Renaissance is financed by equity investments from NCV and LDG. CPC and its lending partner Amalgamated Bank, are providing a $30 million construction loan. CPC is also providing a SONYMA-insured permanent loan through their funding partnership with the New York City Retirement Systems. Additionally, the New York City Department of Housing Preservation and Development (HPD) is providing a property tax exemption and low interest financing to help ensure the affordability of the portfolio.
“We are proud to have provided our expertise and capital to help Mount Hope rehabilitate and reposition these Bronx community assets in this rapidly improving South Bronx neighborhood, said Keith Gordon, Managing Partner of NCV Capital Partners. “We are grateful to Mount Hope for selecting us as their partner, to LDG for lending their extensive development experience as our partner, and to HPD and CPC for utilizing its preservation tools to ensure the project remains quality affordable housing for decades to come.”
The property remains subject to a forty-year regulatory agreement through HPD, ensuring all units will remain affordable to the current and future tenants for the next four decades. The buildings have been owned and managed by Mount Hope for many years but are in need of capital improvements and repositioning. Ninety-seven percent of the existing rents across the portfolio are affordable to New Yorkers earning 60 percent of Area Median Income or lower and will not be changed.
“This partnership is an example of how working together can engineer socially responsible investments that work for everyone involved, most notably the residents of the affordable housing that this fund will help preserve,” said Kenneth Morrison, Lemor Development’s Co-Founder and Principal.
This fourth-quarter closing of Mount Hope Renaissance comes nearly one year after NCV Capital Partners and long-time East Harlem non-profit owner Nuevo El barrio para la Rehabilitacion de la Vivienda y la Economia, Inc. — NERVE — partnered to exercise their Right of First Refusal (ROFR) and in matching the $60MM Purchase & Sales terms offered by another large developer for Los Tres Unidos, a 135-unit affordable housing project in the East Harlem, one block from Central Park. NCV worked with the NERVE leadership to exercise right of first refusal by matching the offer, raising the much-needed cash within the tight 90-day time frame as permitted under the terms of the contract. This ensured the preservation of these assets keeping it affordable for the next few decades.
“With the City facing an affordability crisis and many struggling to keep pace with the costs of rent, it’s critical to preserve our existing affordable housing stock,” said Rafael E. Cestero, President & CEO of CPC. “We’re proud to be part of this effort to preserve the Mount Hope Renaissance portfolio’s 515 affordable units. The financing will help ensure the buildings will have the resources needed to be in good physical and financial health, and importantly, remain affordable to the current and future tenants. My thanks to NCV, Lemor, and HPD, as well as our funding partners at Amalgamated Bank and Comptroller Stringer and NYCRS for their support of this project.”
“Mount Hope Housing Company is steadfast in our commitment to meeting the needs of our community and maintaining affordable housing for our residents,” said Fritz Jean, CEO Mount Hope Housing Company “Choosing to partner with NCV Capital Partners on Mount Hope Renaissance, exemplifies this commitment and is the latest success in our long effort to revitalize the Mount Hope community.”
“Preservation is at the heart of our ongoing efforts through Housing New York to keep families in their homes and communities. Through financing for these 515 apartments, HPD has now secured needed improvements and long-term affordability for the residents of the larger 1,100-unit Mount Hope portfolio, making sure that current and future tenants can afford to remain in their homes for years to come,” said HPD Commissioner Maria Torres-Springer. “I want to thank Mount Hope Housing Company Partners, NCV, Lemor Development Group, CPC, and all the partners who worked to preserve this entire portfolio and to safeguard the affordability of New York City’s neighborhoods.”
“Amalgamated Bank is proud to support the work of these partners in their efforts to preserve the affordable housing Mount Hope provides to the Bronx community,” said Keith Mestrich, President and CEO of Amalgamated Bank. “As America’s socially responsible bank, we have always been committed to providing innovative finance solutions that strengthen communities and help low- and middle-income families thrive.”
This project is a part of Mayor de Blasio’s New York housing Plan, which was recently accelerated and expanded through Housing New York 2.0, to produce 300,000 affordable homes by 2026, and CPC’s continued commitment to nonprofit affordable housing and community revitalization through financing.
About NCV Capital
NCV Capital Partners LLC is a Harlem-based real estate advisory and development firm engaged in the acquisition, financing, development and management of commercial real estate. We work with nonprofit and small-scale developers to maximize financial resources, obtain the best possible terms and connect with joint venture partners and financial institutions. Visit ncvcapital.com and LinkedIn.
About Lemor Development Group
The Lemor Development Group was established to manage the Acquisitions and Property Management division of the Lemor Realty Corporation. This division oversees the acquisition, rehabilitation and property management of vacant and under-performing properties. Formed by Lemor Realty Corporation President Kenneth Morrison and Acquisition Specialist Harrison Rayford in 2014. Through the development of strategic partnerships and innovative financial analysis, Lemor Development Group continues to deliver on its promise to preserve and revitalize Upper Manhattan, focusing mostly on the village of Harlem.
About the New York City Department of Housing Preservation and Development (HPD) is the nation’s largest municipal housing preservation and development agency. Its mission is to promote quality housing and diverse, thriving neighborhoods for New Yorkers through loan and development programs for new affordable housing, preservation of the affordability of the existing housing stock, enforcement of housing quality standards, and educational programs for tenants and building owners. HPD is tasked with fulfilling Mayor de Blasio’s Housing New York Plan which was recently expanded and accelerated through Housing New York 2.0 to complete the initial goal of 200,000 homes two years ahead of schedule—by 2022, and achieve an additional 100,000 homes over the following four years, for a total of 300,000 homes by 2026. For full details visit www.nyc.gov/hpd and for regular updates on HPD news and services, connect with us on Facebook, Twitter, and Instagram @NYCHousing.
About the Community Preservation Corporation (CPC)
Established in 1974, CPC is a nonprofit affordable housing and community revitalization finance company that believes housing is central to transforming under-served neighborhoods into thriving and vibrant communities. The company provides a full suite of capital products through its construction lending, permanent lending, and equity investing platforms. Since inception, CPC has invested approximately $10.5 billion to finance more than 193,000 units of multifamily housing. CPC’s work with its partners has helped revitalize countless neighborhoods and provided quality housing for families, senior citizens, and individuals with disabilities. Visit CPC at communityp.com, and on Facebook, Twitter and LinkedIn.
About Amalgamated Bank
For nearly a century, Amalgamated Bank has served as America’s socially responsible bank, supporting forward-thinking organizations, companies, and individuals across the country. We are an advocate for those working to make the world more just, compassionate and sustainable. Our extensive experience, financial knowledge and community of like-minded customers offer a unique set of financial tools to customers. Amalgamated is the country’s largest B Corp® bank and a proud member of the Global Alliance for Banking on Values. We don’t just have a mission. We are on a mission: to support those who support others, to invest in progressive and impactful causes and to advocate true financial opportunity for all.