Community Preservation Corp. and CPC Resources to finance and co-develop $18 million project

July 25, 2011 - Financial Digest
According to The Community Preservation Corp. (CPC) and its development arm, CPC Resources, Inc. (CPCR), it will finance and co-develop a new, $18 million, 64-unit low-income housing development on the site of the former school and convent of Our Lady of Loreto Church in the Brownsville neighborhood.
The project, developed in partnership with Catholic Charities, will comprise eight separate four-story buildings using CPC's highly successful "In-Fill Model" design. The architecture borrows from New York City's brownstone walk-up residences and applies the latest green building techniques and materials.
The new rental units will be built on the site of the former rectory and convent, and adjacent vacant land at Our Lady of Loreto Church, 2354-2360 Atlantic Ave., between Eastern Pwy. and Sackman St. The church itself will be rehabilitated and preserved as part of the plan.
Michael Lappin, president and CEO of CPC and CPCR, said, "This project exemplifies our mission to partner with local developers, including faith-based groups, and build affordable housing wherever possible in New York City. It also elevates our goals because it combines the most innovative financing and development skills with a bold new green design concept that is contextual within any low-rise residential neighborhood."
The complex financing transaction includes equity to be raised from federal low-income housing tax credits (LIHTCs), together with subsidies provided by the New York City Department of Housing Preservation and Development (HPD) and a New York State Housing Trust Fund (HTF) loan.
Of the 64 rental units, half will be one-bedroom apartments and the other half will be two-bedrooms. Monthly rents will range from $494 to $860. Eight units will be set aside as project-based federal Section 8 apartments for very low income tenants who will pay no more than 30% of their household income.
"We are pleased to be starting development, and are thankful to The Community Preservation Corporation for partnering with us in developing this vital community resource," said Monsignor Alfred LoPinto, Vicar for Human Services, Diocese of Brooklyn.
The major portion of the total cost of development consists of a construction loan of $11.14 million provided jointly by CPC and HPD. The Richman Group will provide approximately $5 million in equity during construction.
The contractor is the L. Riso and Sons, Co. which has completed construction of two projects for CPCR. The architect is Carmi Bee of RKTB, who has worked with CPCR in the past and has extensive experience with similar projects.
CPC Resources, Inc. (CPCR) is the for-profit development subsidiary of The Community Preservation Corporation (CPC), a not-for-profit mortgage lender that has financed more than $7 billion of affordable housing since its founding in 1974. CPCR has developed or rehabilitated more than 14,000 units throughout New York State, including Parkchester Apartments in the Bronx, representing an investment of over $600 million in affordable housing.
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