LISC New York City Closes its First Acquisition Loan Fund Deal

FOR IMMEDIATE RELEASE

Contact:
Sarah Hovde – Research and Policy Analyst
LISC NYC 
(212) 455-9375
shovde@lisc.org

NEW YORK, NY (June 27, 2008) – LISC NYC is pleased to announce the successful closing, on April 24, 2008, of a loan from the New York City Acquisition Loan Fund used for the purchase of two parcels of land in East Harlem by Calvert Lancaster Developers, a joint venture between Hope Community Inc and The Bluestone Organization. This is the first loan to be originated by LISC through the Acquisition Loan Fund. It advances a strategic development plan that includes affordable homeownership and rental housing – incorporating highly environmentally friendly design – for a range of incomes from very low to market, in a neighborhood that has experienced intense gentrification pressure in recent years.

The acquisition of the two land parcels financed through this $2 million loan is part of a larger plan that involves the development of 56 mixed income co-operative homeownership units, 23 Low-Income Housing Tax Credit rental units and 13,000 square feet of commercial/retail space. Through Round IV of the Department of Housing Preservation and Development (HPD)’s Cornerstone Program, the Hope/Bluestone joint venture partnership was awarded a number of small city-owned parcels, scattered between 116th Street to 122 nd Street, from Madison to Third Avenues. In order to assemble sites with maximal development potential, Calvert Lancaster Developers has purchased additional, adjoining lots in the private market.

The two lots will be part of a 29-unit new construction "CondOp" project (wherein the residential units are owned through a cooperative structure, while the commercial units remain owned by the developers). The project will offer affordable homeownership opportunities primarily to households with incomes ranging from 80% to 175% of Area Median Income, plus a few market rate families. The large majority of apartments will have two or three bedrooms, meeting the Community Board’s stated need for family housing. The building will include environmentally friendly design elements – including a green roof – that will qualify it for a LEED Silver designation. Both Borough President Scott Stringer and City Councilwoman Melissa Mark-Viverito have designated Resolution A funds that will help finance these green elements. Calvert Lancaster Developers will likely come back to the Acquisition Loan Fund in the future to finance an additional private parcel needed to complete one of the other development sites.

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Hope Community Inc, founded in 1968 by a group of East Harlem residents, is one of New York City’s largest and most dynamic community housing nonprofit organizations and is a key LISC NYC partner. Over its 40-year history it has developed over 75 affordable income properties and currently manages a portfolio of more than 1,300 high-quality affordable housing units, 40 commercial storefronts and 16 community parks. It also sponsors numerous cultural and artistic projects, fosters local economic development, and generates a stronger sense of community among East Harlem residents.

The Bluestone Organization is a prominent and respected for-profit real estate development company with a long track record of experience and expertise in site selection, planning, financing, construction, marketing and management of residential and mixed-use properties throughout the Metropolitan New York Area.

LISC New York City combines corporate, government and philanthropic resources to help revitalize neighborhoods. For more information, visit www.lisc.org/nyc

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