2 Upstate NY Affordable Housing Properties Secure $21M
- Feb 21, 2018
Riverside Charitable Corp. (RCC) has obtained $20.9 million in financing to acquire and rehabilitate two affordable multifamily properties in New York State. One property is Raymond Watkins Apartments in Sarasota Springs, the other John Guy Prindle Apartments in Ilion.
Raymond Watkins Apartments is a 112-unit age-restricted and affordable Section 8 subsidized multifamily property at 57 Ballston Ave. The community offers a mix of one- and two-bedroom units, and some handicap-accessible dwelling units. The $13.95 million loan is for a term of 30 years.
John Guy Prindle Apartments also consists of a total of 112 age-restricted and affordable Section 8 subsidized multifamily units, and is at 80 East North St. Like Watkins, the property offers a mix of one- and two-bedroom units, and some handicap-accessible units. The $7 million loan is for 35-year term.
The borrower was awarded tax exempt bond volume cap and an allocation of 4 Percent Low Income Housing Tax Credits, and will recapitalize both assets as long-term investments with FHA insured financing. Both properties have historically operated with the benefit of a Section 8 Housing Assistance Payment (HAP) Contract, and will continue to do so. In conjunction with the application submissions, the borrower submitted a request for a new 20-year HAP Contract on both properties.
The total rehab budget is about $3.3 million for Raymond Watkins Apartments and $3 million for John Guy Prindle Apartments. “Both properties are in in good condition and well-maintained considering their age,” noted Tim Hoppin, director at Hunt Mortgage Group. “The renovation work will be completed as an ‘in place’ rehab, with no tenant displacement.”
Hunt Mortage, utilizing HUD’s 223(f) loan program, facilitated the loans. The rehab will encompass concrete work, parking lot overlay, landscaping embellishments, new signage, full roof replacement, new handicap vestibule door system at one entry, full kitchen cabinetry/countertop replacements, new entry and individual interior unit doors, painting of all common areas and unit interiors, among other improvements.
RCC was founded in 1988 as a 501(c)(3) Nonprofit Public Benefit Corporation as a provider of affordable housing supportive services. Gil Seton Jr. and SP Investment Fund LLC are doing the redevelopment work.