HDC TO FINANCE $3.7 MILLION RENOVATION OF 104 APARTMENTS FOR LOW-INCOME FAMILIES IN THE BRONX

1920s-Era Apartment Buildings Will Be Preserved
on the Grand Concourse

New York, NY, January 30, 2006

The Housing Development Corp. will issue a new mortgage loan of $3.68 million to be repaid over 24.5 years or less. By purchasing the buildings’ existing HDC mortgage of $1.6 million, and issuing the new mortgage at a lower interest rate, HDC will provide money to the buildings owner, B&L Concourse Housing, to make needed substantial renovations. The Kraus Organization recently entered into an agreement to acquire the general partnership interest of B&L in order to recapitalize this troubled affordable housing development and maintain its affordability by refinancing the existing HDC mortgage. Repairs to be done on the building will include roof work, elevator improvements, brick repointing, repairs to sidewalks, and upgraded kitchen cabinets, counter tops and sinks, ranges and refrigerators and bathroom fixtures, and new apartment flooring and new doors.

Built in 1925 when the Grand Concourse was viewed as the premier place to move for the middle class fed up with overcrowding in Manhattan, the buildings had fallen into abandonment by the early 1980s. In the mid 1980s, they were rehabilitated by the NYC Housing Development Corp. working in conjunction with the New York City Department of Housing Preservation and Development using money from a Federal Housing Development Grant. In April 1984, Mayor Ed Koch stood on the steps of 1290 Grand Concourse to announce that rehabilitation initiative with Anthony B. Gliedman, then the City housing commissioner. “Building the Concourse spurred much of the development of the Bronx more than 70 years ago,” Commissioner Gliedman said then. “Restoring these buildings will be a crucial step in rebuilding the entire borough.”

Indeed, the Grand Concourse no longer has vacant buildings. “Our challenge today is to carry forward the work begun 30 years ago by ensuring continual maintenance on these great buildings,” said Emily A. Youssouf, the president of the Housing Development Corporation. “Our refinancing today will maintain these buildings into the decades ahead – preserving a critical component of affordable housing in New York City.”

The New York City Housing Development Corporation (HDC) is the nation's number one issuer of bonds for multi-family affordable housing. Established in 1971 as a public benefit corporation, HDC facilitates the creation of affordable housing throughout the five boroughs by providing below- market financing. Most of HDC's loans are financed through the issuance of tax-exempt or taxable bonds, as well as through mortgages made directly from its Corporate reserves.

HDC has a seven-member governing body. Shaun Donovan, the Commissioner of the New York City Department of Housing Preservation and Development (HPD), is ex-officio Chairperson. Martha E. Stark, the Commissioner of the New York City Department of Finance (DOF), and Mark Page, the Director of the office of Management and Budget (OMB), also serve as ex-officio members. The Mayor and the Governor both appoint two members to HDC's governing body. Harry E. Gould, Jr. and Peter Madonia are Mayoral appointees, with Mr. Madonia serving as Vice Chairperson. Michael Kelly and Charles O. Moerdler were appointed by the Governor.