Rockport Mortgage Corporation has closed a $74.5 million FHA Section 223(f) refinancing loan for Israel Senior Citizen Housing I and II, a 512-unit HUD-subsidized property for the elderly located in the Far Rockaway neighborhood of Queens, NY.
The property consists of two 17-story elevatored buildings and is owned by JASA Corporation and managed by JASA Housing Management Services for the Aged.
Israel Senior Citizen Housing I and II was constructed in 1966 and developed for elderly housing under HUD’s Section 202 Direct Loan Program.
The property had previously been refinanced under the FHA’s Section 223(f) Loan Program. The development has benefited from a total of four Project-Based Section 8 Contracts covering 481 units. An additional 30 units are rent restricted by the original HUD Section 202 Use Agreement.
In connection with this refinancing, JASA and HUD have agreed to enter into a new single 20-year Project-Based Section 8 Contract covering all 481 Section 8 units, thereby extending the affordability of the housing resource through 2040.
The property’s location is ideally suited to the tenants living there given its walkability and close proximity to beaches, shopping, parks, restaurants and various forms of public transportation that connect the Far Rockaway neighborhood with the other New York City boroughs.
JASA employs a full-time Resident Services Coordinator to assist tenants with a variety of activities and the coordination of community services as well as full-time security staff to oversee the buildings and grounds.
Loan proceeds will be used to fund extensive capital improvements that will improve the quality of life for tenants living at the property. Unit improvements include upgrading a significant number of kitchens and baths, the replacement of a large number of doors, windows, thru-wall AC units and flooring, and interior unit painting.
Additional property improvements include modernization of the four-elevators, installation of smart building video intercom and security systems, a new fire alarm system, a new boiler plant system and the renovation of common area solariums.
“As an industry leader in affordable senior housing, we see first-hand the overwhelming demand for this type of high-quality housing in New York City. We are thrilled to be able to provide our tenants with added services and upgraded facilities thanks to our partners at Rockport Mortgage Corporation. Now, more than ever, the older adults we serve need a safe and secure place to call home,” said Donald Manning, JASA’s Executive Director of Real Estate & Management.
Linda Pellegrino, Senior Vice President of Rockport Mortgage Corporation, added, “It is well-known the City has a significant shortage of safe, affordable housing, particularly that meet the specific needs of seniors. We’re pleased to work once again with JASA, as well as with HUD, Forsyth Street Advisors and Nixon Peabody, in making full use of the affordable housing preservation tools that HUD provides.
“When the cost of new construction is so incredibly high, particularly in areas such as New York City, these preservation tools have a huge impact on providing safe, affordable housing for the most vulnerable members of our society.”