FOR IMMEDIATE RELEASEJPMorgan Chase and Fannie Mae Announce Financing for New Mixed-Income Housing in East Harlem Through the New York City Housing Development Corporation
December 11, 2002
Catherine Keary, JPMorgan Chase Media Relations
NEW YORK, NY - The New York City Housing Development Corporation (HDC), JPMorgan Chase Bank, and Fannie Mae (FNM/NYSE), the nation's largest source of financing for home mortgages and multifamily housing, today announced a commitment to credit enhance $44 million of HDC tax-exempt bonds for the development of a 231-unit, mixed-income apartment building at 1955 First Avenue in New York City. The seven-story apartment building will occupy the entire west side of First Avenue between 100th and 101st Streets in East Harlem.
This is the first such transaction under the new HDC Middle Income Housing Program that encourages the development of mixed-income housing for low- moderate- and middle-income families. The New York City Department of Housing Preservation and Development (HPD) sold the land site to the developer for the appraised value with a one-dollar payment at settlement in accordance with a development agreement under the Cornerstone Program, HPD's multifamily new-construction housing initiative to create 3,000 middle-income and market-rate apartments. When the property is resold in the future, the difference between the appraised value and the one-dollar amount will be repaid to New York City. "1955 First Avenue demonstrates the feasibility of developing new multifamily housing on vacant city-owned land through primarily private financing," said HPD Commissioner Jerilyn Perine, describing the unique nature of the Cornerstone Program.
JPMorgan Chase Bank of J.P. Morgan Chase & Co. (JPM/NYSE) provided the construction loan enhancement and American Property Financing (APF), a Fannie Mae Delegated Underwriting and Servicing (DUSTM) lender, arranged for the long-term credit enhancement with Fannie Mae.
"Mixed-income neighborhoods are nothing new to New York," said Chuck Brass, president of HDC. "What's unique about 1955 First Avenue is that you have the richness of New York's diverse neighborhoods in one building, financed through a new program developed to stimulate the growth of mixed-use, mixed-income, affordable rental housing in the city."
"This is all about strengthening the community," said Mark Willis, executive vice president of the community development group at JPMorgan Chase. "JPMorgan Chase has financed approximately $540 million in projects in Harlem over the past few years. This consists of more than 6,000 dwelling units and a half million square feet of commercial space. Affordable housing is essential to a community and we are proud to continue our leadership role in Harlem through this innovative and creative project."
L&M Equity Participants, Ltd.; BFC Partners; and Allstate Realty Associates are the developers of the project. L&M specializes in developing affordable rental housing in the New York City metropolitan area, and BFC provides general contracting, project management services, and oversight for low-income property development.
In addition to 231 apartments, the building will include a superintendent's unit, 15,331 square feet of retail space at street level, a 3,515 square foot community facility, and a parking garage for 116 cars. The property will offer amenities comparable to nearby Class "A" luxury buildings with a 24-hour doorman, fitness center, and outdoor landscaped garden. All individual units, regardless of tenant income, will feature oak floors in the living room areas, ceramic tile floors, ceramic tile tub surrounds, and pedestal sinks in the bathrooms. Kitchens feature wood cabinets, appliances including a refrigerator, a sealed burner gas range with a self-cleaning oven, a microwave, and a dishwasher.
Forty-seven units will be available to low-income families that earn no more than 50 percent of the area median income ($31,400). Sixty-three units will be for middle-income families with incomes not to exceed the lesser of seven or eight times the rents set by HDC or 250 percent of area median income ($157,000). The remaining 121 units will be rented at the prevailing market rate.
"The transaction we are announcing today exemplifies APF and Fannie Mae's partnership in supporting local housing initiatives that are designed to revitalize communities and provide clean, safe, and affordable rental housing," said Alan Wiener, chairman of APF.
"Pulling together such a transaction for the first time in New York was no small task," said Arnold Ifill, Fannie Mae's vice president for multifamily activities, Northeast Regional Housing & Community Development. "Many organizations laid the groundwork that will make this accomplishment easier to achieve in the future."
Fannie Mae, through its Affordable Rental Housing Leadership Initiative, will finance more than $175 billion in multifamily housing across the nation by 2010, and will work to increase investment in affordable multifamily developments throughout New York. This Initiative is part of the company's $2 trillion American Dream Commitment © to increase the supply of affordable rental housing and homeownership rates nationwide to serve 18 million targeted American families by the end of the decade.
New York City Housing Development Corporation (HDC) is a public benefit corporation established in 1971 to facilitate the creation of affordable housing throughout New York City by providing below market rate financing. HDC finances most of its activities through the issuance of bonds and notes as well as provides mortgages directly from it corporate reserves. In its 30-year history, HDC has financed more than 74,000 units of housing throughout the City of New York. HDC is located at 110 William Street in Manhattan. Information about HDC is available at www.nychdc.com.
New York City Department of Housing Preservation and Development's (HPD) mission is to promote quality affordable housing and viable neighborhoods for New Yorkers. The department is the nation's largest municipal housing development agency. Since Fiscal Year 1987, the agency has completed the construction or rehabilitation of 204,000 units of affordable housing. To request a Homeownership Kit, call HPD's Information Line at (212) 863-8000. For more information about affordable rental housing call HPD's Affordable Housing Hotline at (212) 863-5610 or log on to www.nyc.gov/hpd.
J.P. Morgan Chase & Co. is a leading global financial services firm with assets of $742 billion and operations in more than 50 countries. The firm is a leader in investment banking, asset management, private banking, private equity, custody and transaction services, and retail and middle market financial services. A component of the Dow Jones Industrial Average, JPMorgan Chase is headquartered in New York and serves more than 30 million consumer customers and the world's most prominent corporate, institutional and governmental clients. Information about JPMorgan Chase is available on the Internet at www.jpmorganchase.com.
Fannie Mae is a New York Stock Exchange company and the largest non-bank financial services company in the world. It operates pursuant to a federal charter and is the nation's largest source of financing for home mortgages. Fannie Mae is working to shrink the nation's "homeownership gaps" through a $2 trillion "American Dream Commitment" to increase homeownership rates and serve 18 million targeted American families by the end of the decade. Since 1968, Fannie Mae has provided over $4 trillion of mortgage financing for 47 million families. More information about Fannie Mae can be found at the Internet at http://www.fanniemae.com.
DUS is a trademark and the American Dream Commitment is a registered mark of Fannie Mae. Unauthorized use of these marks is prohibited.
Style Usage: Fannie Mae's Board of Directors has authorized the company to operate as "Fannie Mae," and the company's stock is now listed on the NYSE as "Fannie Mae." In order to facilitate clarity and avoid confusion, news organizations are asked to refer to the company exclusively as "Fannie Mae."