LOS SURES

Inclusionary Preservation

101 South 3rdStreet is a Year 15 tax credit property located in the increasingly gentrified neighborhood of South Williamsburg, Brooklyn. The property is part of a larger Year 15 portfolio sponsored by Los Sures, a long established local Not for Profit in South Williamsburg. Rockabill developed a valuable financing concept of utilizing a little known NYC Housing Preservation and Development (HPD) program called Preservation Inclusionary Certificates to use the power of the private development market to sell inclusionary (IZ) certificates. This concept generated proceeds for the preservation of existing affordable housing stock. 101 South 3rdStreet was the first building in this portfolio to undertake this execution. The property consists of a six-story walk up building comprised of 35 units. This important preservation project pre-sold its inclusionary certificate and now bridges the receipt of those proceeds to allow the owner to undertake the necessary renovations in the building. Rockabill worked closely with HPD’s inclusionary unit and LISC as the bridge lender to develop this innovative plan. The project closed on financing in June of 2017 and construction was completed in June of 2018.

News Links:
https://www1.nyc.gov/site/hpd/about/press-releases/2017/07/07-13b-17.page

    • Preserved 35 units of affordable housing for low-income individuals and their families
    • Extends the affordability of the units in perpetuity
    • Addressed the need for affordable rental units for the community
    • Improved the performance of the property’s operating and cash flow
    • Excess sales proceeds available to Los Sures to develop new affordable housing
    • Developed the value-added financing execution to an owner unfamiliar with the use of this unique financing mechanism.
    • Worked with members of the project’s development team to create a project that is financially feasible.
    • Provided expertise in the underwriting of the development of the properties operating budgets.
    • Filed applications to appropriate agencies for Inclusionary Certificate.
    • Negotiated terms and conditions with the buyers of the IZ certificates
    • Coordinated the securing of the bridge loan, as well as gathered and provided information to secure the construction loan.
    • Advised and assisted in the closeout of the sale of the IZ certificates.
    • NYC Housing Preservation and Development: Inclusionary
    • LISC: Bridge Lender
    • Architect: Victor Morales Architects P.C.
    • General Contractor: FG-PH Construction
    • Sustainability Consultant: Bright power
    • Attorney: Hirschen Singer & Epstein, LLP