Habitat for Humanity to Rehab Three Brooklyn Properties
- May 07, 2012
New York—Enterprise Community Partners and Habitat for Humanity New York City have closed on a $2.9 million loan that will enable Habitat-NYC to acquire and rehabilitate three distressed multifamily buildings in the Bedford-Stuyvesant neighborhood of Brooklyn. The loan is the first toward a $5 million facility that will help finance the rehab of vacant properties in New York, particularly in supporting Habitat-NYC’s ongoing effort, known as “100 Homes in Brooklyn,” to develop 100 affordable residential units in the Bedford Stuyvesant and Oceanhill-Brownsville sections of Brooklyn.
The three buildings are located in the 700 block of Madison Street in Brooklyn. Habitat-NYC had completed substantial rehabilitation of these buildings prior to the purchase. The purchase of 782 Madison Street will be closed in July for $2 million, while the other two buildings—784 Madison Street and 786 Madison Street—were both purchased in January for $2 million each. There are a total of 18 units in the three structures: six two-bedroom units and 12 three-bedroom units.
“Once rehabilitated, these units will be sold to first-time-homeowner New York City resident families earning between 50 percent to 80 percent of area median income,” a spokesman for Enterprise told MHN. “The loan will help to leverage Habitat’s Neighborhood Stabilization Program 2 (NSP2) funds from HUD.”
NSP2 aims to create and preserve affordable housing in areas with high levels of foreclosure. Enterprise Community Loan Fund issued a $5 million revolving credit facility from the program’s Stabilization Trust REO Capital Fund in 2011 to help Habitat-NYC leverage their NSP2 commitment. So far, over $500,000 of the $2.9 million loan has been distributed, with the remaining balance to be distributed in the next six months.
Homebuyers at the Madison St. properties will obtain financing for these homes through the SONYMA Habitat-NYC Habitat for Humanity Mortgage Program. The program provides qualifying Habitat-NYC families 2 percent fixed rate 30- or 40- year mortgages with a 1 percent down payment. Also, SONYMA offers families up to $15,000 in down payment and closing cost assistance.