Tahl Propp Equities (TPE) has entered into a 30-year Regulatory Agreement with HPD for AK Houses, a 157-unit Section 8 building at 112-126 East 128th Street in East Harlem.
Under the HPD Agreement, 100 percent of the units will be rented to low-income residents for the next 30 years.
In addition, TPE has closed on mortgage financing for the property with Freddie Mac and has substantially completed a $1.8 million preservation and capital improvements program at AK Houses.
Renovations to the 12-story, 100 percent low-income property 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 building.
“We are deeply committed to preserving and developing quality low-income affordable housing in New York City, specifically in Harlem, consistent with Mayor de Blasio’s progressive affordable housing plan, and AK Houses is part of a much larger effort by our firm,” said Joseph A. Tahl, president of Tahl Propp Equities, a privately-held, community-based real estate investment firm that owns, manages and has in development more than 3,000 units of affordable housing in East and West Harlem.
“We have now completed the long-term preservation of some 500 low-income units in East Harlem, which are part of a much larger initiative to build and preserve over 2,500 units of long-term affordable housing in Harlem over the next five years.”
The current program began in summer 2013 at AK Houses and its sister building 1775 Houses, a 255-unit Project Based Section 8 project located at 107-129 East 126th Street, which underwent an identical commitment to 30 years of Project Based Section 8 HAP contracts with HUD, and a 30-year Regulatory Agreement with HPD under Article 11.
As with AK Houses, Tahl Propp completed a $1.8 million capital improvements project at 1775 Houses, which was celebrated at a gardening event for the residents in early November 2014.
Added Rodney Propp, chairman of Tahl Propp Equities, “The real estate community needs to get behind Mayor de Blasio’s goal of creating significantly more affordable housing. Economic diversity is not only critical to the City’s social fabric, it’s good business.”
Financed by Freddie Mac, the fixed-rate loans were arranged by Centerline Capital Group and consist of $37.5 million for AK Houses and $54.4 million for 1775 Houses. Both AK Houses and 1775 Houses are 98 percent occupied.