The Community Preservation Corporation, Inc. (CPC), a not-for-profit affordable housing and neighborhood revitalization lender, announced the closing of its first eight loans under the Freddie Mac Small Balance Loan (SBL) Program.
Totaling $23.7 million, the loans will support 275 rental units in small buildings in Yonkers, New York City, Syracuse, and Troy, and are CPC’s first to close since being approved as one of a select group of seller servicers to participate in the SBL program earlier this year.
The SBL program provides mortgages ranging from $1 – $5 million for the acquisition or refinancing of small multifamily properties with five or more units.
“Small multifamily buildings are home to millions of hardworking New Yorkers and are a critical piece of the State’s housing stock. However, when it’s time to refinance or find the capital to make repairs and upgrades many owners discover that there’s a significant shortage of products built to fit their unique needs,” said Rafael E. Cestero, president and CEO, CPC.
“The SBL program addresses this acute gap in the market and offers owners the financing solutions they need to keep their properties in good repair and sustainable over the long-term. I’m proud that Freddie Mac has chosen CPC as one of its select lenders for the SBL program, and look forward to continuing our shared mission of providing smart, flexible lending solutions that preserve and strengthen the housing stock in underserved neighborhoods.”
Stephen Johnson, Senior Director of Freddie Mac Multifamily, said, “We are excited that our Small Balance Loan initiative is quickly gaining momentum in the marketplace and providing a strong financing option. We look forward to working with The Community Preservation Corporation to close more small balance loans and bring long-term debt capital to this market segment.”
Because many of these buildings are either subsidized, rent stabilized, or in neighborhoods with already low market rents they often provide a haven of affordability to low- and moderate-income households.
As these buildings continue to age and maintenance and operational costs continue to rise, many small multifamily building owners find they often lack the access to funding and resources that are available to larger developers and property owners for capital repairs and upgrades, and refinancing.
Through the SBL, CPC and Freddie Mac are extending financing and flexible terms that are tailored to the unique needs of small building owners, allowing them to provide for the long-term physical and financial sustainability of their properties.
Properties closing with CPC on new Small Balance Loans include:
• 93 William Street, Yonkers: $3.225 million permanent loan to refinance this three-story, 19-unit rental building on the North end of Yonkers.
• 121 East Clark Place, Bronx: $2.75 million permanent loan to refinance this six-story, 48-unit low-income affordable rental building with a mix of rent stabilized and Section 8 supported apartments.
• 160 West 142nd Street, Manhattan: $2.235 million permanent loan to refinance this six-story, 22-unit moderate-income, mixed-use rental building.
• 29 Meserole Street, Brooklyn: $2.12 million permanent loan to refinance this four-story, 8-unit rental building constructed in 2006.