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NYC Department of Housing Preservation & Development

FOR IMMEDIATE RELEASE
Monday, January 11, 2010

Eric Bederman 212-863-5176 (HPD)
Christina Sanchez 212-227-2644 (HDC)


HPD COMMISSIONER CESTERO, HDC PRESIDENT JAHR ANNOUNCE L+M DEVELOPMENT PARTNERS TO BEGIN REHABILITATION OF A SECTION 8 RENTAL BUILDING IN HARLEM

Harlem Project Moves City Closer To Milestone 100,000 Units Under Bloomberg Housing Plan to Create and Preserve 165,000 Units By 2014

New York, NY - New York City Department of Housing Preservation and Development (HPD) Commissioner Rafael E. Cestero and New York City Housing Development Corporation (HDC) President Marc Jahr announced today that L+M Development Partners Inc. has closed on the construction funding and will begin rehabilitating 1428 Fifth Avenue, a 120-unit Section 8 rental building located on West 116th Street in Harlem through the New York City Housing Development Corporation's (HDC) Low-income Affordable Marketplace Program (LAMP).  L+M recently acquired 1428 Fifth Avenue, which includes both the building and an adjacent vacant land parcel. The project is part of Mayor Michael R. Bloomberg's $7.5 billion New Housing Marketplace Plan (NHMP) to build and preserve 165,000 units of affordable housing; the largest municipal affordable housing initiative in the nation.
 
In addition to the preservation of the building at 1428 Fifth Avenue, L+M is working on plans to develop the adjacent vacant land as a mixed-use development.  The rehabilitation of 1428 Fifth Avenue is scheduled to be completed within 12 months and construction on the vacant lot is expected to commence in mid-2011.

The project is part of Mayor Bloomberg's NHMP, which to date has financed nearly 100,000 affordable homes across the five boroughs.  The plan, launched in 2004, is the largest municipal affordable housing effort in the nation. Under the NHMP, HPD and HDC have financed the construction of more than 35,900 new homes and the preservation of more than 61,500 units of affordable housing in the five boroughs. Nearly 15,297 units have been financed in Harlem, with more than 8,592 represented in Community District 10 where 1428 Fifth Avenue is located.

HPD Commissioner Rafael E. Cestero said: "The dilapidated buildings and vacant land that were once endemic to Harlem are a thing of the past. Working with developers such as L+M, HPD and HDC are bringing quality affordable housing, new economic opportunity and stability back to this proud, historic neighborhood and others like it throughout the City. L+M projects such as 1428 Fifth Avenue and the Kalahari, and others across the city have added to the more than 97,400 units of affordable housing we have been able to provide to our residents. L+M has been a dedicated partner in the Mayor's New Housing Marketplace Plan, and their strong commitment to building affordable housing moves us closer to our goal to finance the creation or preservation of 165,000 homes by 2014." Commissioner Cestero also serves as Chairman of the HDC Board of Directors.

"HDC, with our sister agency HPD, is dedicated to creating new affordable housing opportunities across the five boroughs and funding the preservation of older housing, such these homes on Fifth Avenue. In Central Harlem where the median age of housing stock is over 85 years old," said Marc Jahr, President of HDC, "efforts such as this are essential to keeping families in their homes while giving them the benefit of safer and more stable living conditions. To date, under Mayor Bloomberg's New Housing Marketplace Program, HDC has funded the creation and/or preservation of 3,609 homes for low- , moderate- , and middle-income households in Central Harlem. Throughout our efforts on behalf of this community, L+M has been a valued and dependable partner."

The $27.7 million moderate rehabilitation of 1428 Fifth Avenue is being funded with over $20M in tax-exempt bonds for the construction phase of this development and $15.42M for the permanent financing.  $4.6M will come from recycled bonds and $15.42 from volume cap provided by HDC.  Equity from 4% as-of-right low income housing tax credits purchased by Goldman Sachs, and a $1.8 million loan from the Department of Housing Preservation and Development (HPD) completed the construction financing. In addition, GSLM Capital Partners, an investment fund between L+M and Goldman Sachs Urban Investment Group (UIG), provided the equity for the acquisition of 1428 Fifth Avenue and the vacant land. Raza Development Fund provided an acquisition loan of $5.1 million for the purchase of a vacant land parcel. 

"In times of economic crisis, it is more important than ever to develop and preserve affordable housing for the people of New York City," said L+M co-founder Ron Moelis. "Our partnership with HDC and the city's Department of Housing Preservation and Development, along with private investment organizations on West 116th Street, allows us to work collectively and creatively to carry out our longstanding commitment to affordable housing. Together with the community, we look forward to leading this rehabilitation and continuing to improve the lives of people here in Harlem."

 The renovation of 1428 5th Avenue will proceed with tenants remaining in place. Built in 1983, the existing structure is a six-story elevator building spanning an entire block of Fifth Avenue from West 116th Street to West 117th Street, with a total of 120 studio, one, two and three-bedroom units. Construction work includes renovations and energy efficient upgrades to the kitchen and baths, installation of energy efficient windows, air conditioning sleeves, improvements to electric lines, and roof repairs.    The construction phase 1428 5th Avenue will create approximately 176 construction-related jobs.

The rehabilitation of 1428 Fifth Avenue and the development of the vacant land continue L+M's investment on the West 116th block.  L+M is also responsible for the development of the Kalahari, a 242-unit mixed-income condo building located across the street from 1428 Fifth Avenue.

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New York City Department of Housing Preservation and Development
HPD's mission is to promote quality housing and viable neighborhoods for New Yorkers. It is the nation's largest municipal housing preservation and development agency. Responsible for implementing Mayor Bloomberg's New Housing Marketplace Plan to build and preserve 165,000 units of affordable housing, HPD also actively promotes the preservation of affordable housing through education, outreach, loan programs and enforcement of housing quality standards. For more information visit
www.nyc.gov/hpd

New York City Housing Development Corporation
The New York City Housing Development Corporation (HDC) provides a variety of financing programs for the creation and preservation of multi-family affordable housing throughout the five boroughs of New York City. HDC's programs are designed to meet the wide-range of affordable housing needs of the City's economically diverse population. In partnership with the NYC Department of Housing Preservation and Development, HDC works to carry out Mayor Michael R. Bloomberg's New Housing Marketplace plan to finance the creation or preservation of 165,000 affordable housing units by 2014. Since the plan launched in 2004, HDC financed more than 44,000 homes for low- , moderate- and middle-income New Yorkers. HDC is rated AA by S&P and Aa2 by Moody's. For more information on HDC's programs or to find affordable housing opportunities, please visit
www.nychdc.com

About L+M Development Partners
Since 1984, L+M Development Partners has been a leader and innovator in developing affordable, mixed-income and market rate housing. L+M is a full-service firm with expertise in partnering with community, government, and investment organizations to lead projects from conception to completion and long-term management. L+M has answered the need for affordable housing, having built over 10,000 high-quality units in the tri-state area, and in the process has helped to revive neighborhoods and communities once scarred by neglect.  With 25 years of experience and extensive in-house capability, L+M brings a superior level of commitment, creativity and integrity to every new venture.

Raza Development Fund
Raza Development Fund is a 501(c) 3 nonprofit corporation and a registered Community Development Financial Institution (CDFI) under the Department of Treasury.  RDF creates investment solutions that generate greater opportunities for families and the Hispanic community.  RDF is headquartered in Phoenix, AZ.

Goldman Sachs Urban Investment Group
Founded in 2000, the Goldman Sachs Urban Investment Group deploys the firm's capital though investments, loans, and grants to help transform distressed communities into sustainable and vibrant neighborhoods of choice and opportunity. By deepening our engagement in communities and strengthening relationships with the public and non-profit sectors, we leverage the firm's human and financial capital to advance a comprehensive community development agenda. To learn more, contact us at 212-902-4216.




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