November 27th, 2013
New Affordable Housing Deal for Poughkeepsie
Poughkeepsie – The Community Preservation Corporation (CPC), a leading mortgage lender for multi-family affordable housing, today announced a new initiative under the Positive Social Purpose (PSP) Lending Program, a global impact investing program administered by Wespath, the investment division of the General Board of Pension and Health Benefits of The United Methodist Church. The program works through a network of partners, referred to as “intermediaries,” which present opportunities to purchase loans supporting community development projects, such as the rehabilitation and preservation of affordable housing.
The new CPC-PSP partnership aims to provide construction-to-permanent loans for small and multi-family developments in New York State. This partnership involves a commitment from the PSP Lending Program of up to 30-year fixed rate permanent loans. Four loans totaling $12.9 million have been approved and are expected to close by the end of the year. Recently, CPC closed its first loan through the PSP program, a $500,000 permanent mortgage loan for 17 South Hamilton Street, a mixed-use building with ten rentals and six commercial units in Poughkeepsie.
“At CPC, we believe in creating strong communities through financing affordable and supportive housing. Thanks to our new relationship with the PSP Lending Program and Wespath, we will continue to strengthen neighborhoods by providing much-needed capital to multifamily building owners across New York State,” said Rafael E. Cestero, President and CEO, The Community Preservation Corporation. “We thank our partners at Wespath for sharing our vision and commitment to creating high quality, stable and affordable housing, and look forward to our ongoing partnership.”
Wespath Managing Director Michael Lohmeier commented, “We are enthused to continue our long-term relationship with CPC and support the revitalization of New York communities. Partners like CPC and SONYMA are central to the success of the Wespath’s Positive Social Purpose Lending Program.”
17 South Hamilton Street
The acquisition and moderate rehabilitation of 17 South Hamilton Street, a Poughkeepsie-based building built in 1925, is the first transaction to close under this new partnership. Insured by SONYMA, the project consists of two one-bedroom, eight two-bedroom, and six retail spaces. The loan will help facilitate a moderate rehabilitation of both the residential and commercial spaces. Repairs and upgrades include a new roof for the apartments and roof repair for the commercial space; window replacements; plumbing and electric upgrades; new kitchen counters flooring, and appliances; and new toilets and bathroom repairs, among others.
Average rent for the property’s one-bedroom units is $625 per month and $800 for two-bedroom apartments, which are affordable to households at or below 50% of the area median income. Monthly rents for the retail spaces range between $325 to $700, and all units are occupied by a shoe repair shop, two clothing stores, an artist, a tee shirt printing shop, and an art apparel design shop. The building is closely located to the major shopping retail corridor on Route 9 and the Metro North Train Station.
The City of Poughkeepsie has been a designated target area for CPC investment for the past 20+ years. To date, CPC has financed a total of 54 projects with 947 apartments representing total financing of $48.61 million.