Tahl Propp Equities has signed a new 35-year deal to keep over 100 Harlem apartments affordable to the cityʼs poorest residents.
The company has now preserved over 650 housing units in its Affordable Housing Preservation Program.
“We remain completely committed to maintaining, responsibly managing and building quality affordable housing in New York City for many years to come,” said Joseph A. Tahl, president of Tahl Propp Equities.
“We look forward to continuing being good neighbors in Harlem and helping families afford to stay in their communities.”
Tahl Propp will preserve 107 units of low-income affordable housing at Lexington Gardens, a multi-family development it owns at 127 East 107th Street.
The preservation is possible through a 20-year project-based Section 8 HAP contract with HUD, a tax-abatement under Article XI, and a 35-year Regulatory Agreement with HPD.
The deal ensures that 100 percent of the apartments will continue to be leased to low-income residents for the next 35 years.
As part of the transaction, Tahl Propp secured a 35-year fixed-rate loan of $27.4 million on Lexington Gardens, financed by FHA.
An eight-story residence built approximately in 1980, Lexington Gardens is Tahl Propp Equities’ fourth major building to be preserved as long-term affordable housing, for a total of 650 units thus far.
The owner recently completed a $2 million capital improvement program at Lexington Gardens that included individual apartment repairs, brick re-pointing, façade restoration, and the installation of new elevators, new heating and cooling systems, and new electrical panels throughout the facility.
Lexington Gardens is part of Tahl Propp’s ongoing preservation program across its entire portfolio.
The long-term preservation effort began in East Harlem in the summer of 2013 at both AK Houses and its sister building, 1775 Houses, and continued with MS Houses, also in East Harlem. These three project-based Section 8 projects reserved 157, 255 and 131 affordable housing units, respectively.
All three included a long-term commitment to affordability with 20-year Project-Based Section 8 HAP contracts with HUD, Article XI tax abatements and 30 or 35-year Regulatory Agreements with HPD.
“When our firm acquired Lexington Gardens in 2006, we immediately implemented substantial improvements,” said Rodney Propp, Tahl Propp Equities’ chairman. “Now we have had an opportunity to complete this effort and make this building a model for affordable housing.”
Tahl Propp Equities (TPE), a privately-held, community-based real estate investment firm owns, manages and is developing over 3,000 units of affordable housing in East and West Harlem.
By participating as an owner in one of HPD’s rental subsidy programs, the multi-family owners help provide affordable housing to New Yorkers in need.
They also benefit from guaranteed monthly rent payments (partially paid by the state) low vacancy rates, and annual inspections by HPD.