NEW YORK (November 10, 2005) - CPC Resources, Inc., the development subsidiary of The Community Preservation Corporation, celebrated today, along with the New York City Housing Development Corporation (HDC), the grand opening of 138 East 112th Street, a 43-unit rental apartment building reserved for middle-income residents in East Harlem.

The new, seven-story elevator building offers one-, two- and three-bedroom apartments at affordable rents that compete favorably with the booming Harlem housing market.

Market rents in East Harlem currently range from $1,150 to $2,000 for one bedroom apartments; from $1,800 to $2,500 for two bedroom units; and from $2,000 to $2,500 for three bedrooms. Rents at 138 East 112th Street will be at the lower end of that range.

At today’s grand opening ceremony, CPC Resources President and CEO Michael Lappin said, “East Harlem is experiencing a tremendous rejuvenation. We are proud to be among the pioneering developers who had the vision in late 2002 to bring new affordable housing to help stabilize the community and provide needed housing for the area.”

CPC Resources acquired the property from a private owner and is the sole developer of the project.

The development was financed through HDC’s New Housing Opportunities Program (New HOP), which aims at providing low-cost financing for the creation of housing affordable to middle-income people. This program, which uses the proceeds from the sale of taxable bonds to make low-cost mortgages, provided $6.2 million in construction and permanent loan financing. The bonds were credit-enhanced during the construction phase with a letter of credit from HSBC Bank. New HOP also provides financing from HDC’s corporate reserves, to make second mortgage loans with 1% interest. A second mortgage was made for 138 East 112th Street in the amount of $1.6 million. There also was a letter of credit from the Bank of China.

Emily A. Youssouf, President, New York City Housing Development Corporation, said, “This development represents 43 of the more than 17,000 apartments we have created or preserved throughout the City as part of Mayor Bloomberg’s New Housing Marketplace Program. The plan’s objective is to offer affordable housing opportunities for low-, moderate and middle-income housing. With the renewed popularity of East Harlem we are pleased to be able to offer financing solutions that help keep prices affordable.”

The building is located five blocks from Central Park and within walking distance to a variety of shops, restaurants and public transportation. The #6 train is two block away at Lexington Ave. and East 110th Street, and the #3 train is on Lenox Ave. and 110th Street, six blocks away.