Affordable Housing / HUD 202 Preservation

Pio Mendez Houses for the Elderly & VIP Housing for the Elderly was the rehabilitation of two HUD 202 buildings located in the Hunt’s Point and Tremont neighborhoods of the South Bronx. The properties are owned and managed by the nonprofit organization SEBCO (South East Bronx Community Organization). Their on-going mission is to preserve and create affordable housing for their residents and community. SEBCO’s Pio Mendez Houses for the Elderly is a seven-story building comprised of 91 rental apartments; VIP Housing for the Elderly is also a seven-story building comprised of 91 rental apartments. Rockabill was engaged by SEBCO to analyze the financial structure required for the project and to facilitate the use of an NYC HDC/HPD acquisition/rehabilitation program to finance the project using Tax-Exempt bonds and Tax Credit equity.

    • Preserved 182 units of affordable housing rental apartments-renovation costs of $12.3m included new bathrooms, kitchens, roof replacement, new boilers, new elevators, upgraded lobby, façade work;
    • Addressed the need for housing for low-income and very-low income residents of the South Bronx.
    • Repositioned the building’s operating capabilities for increased efficiency by lowering operating costs and debt service payments;
    • Generated substantial developer fee, excess sales proceeds, and access to residual cash flow for the client through the use of innovative financing solutions.
    • Provided expertise in underwriting the development and operating budgets.
    • Negotiated with NYC Housing Development Corporation (HDC) to secure bond financing.
    • Worked with members of the development team to create a well-designed and financially feasible project.
    • Filed application with HPD to secure an allocation of 4% tax credits.
    • Negotiated the terms and conditions of the project with the both the bank and syndicator to secure the construction loan and tax credit equity proceeds.
    • Completed monthly requisitions during construction period and monitored renovations to ensure project remained on budget and schedule.
    • Worked with accountants to complete the cost certification, and secure the final allocation of tax credits.
    • Coordinated with financing partners to convert the project from construction to permanent financing.
    • Provided on-going consultation to the client throughout the development of the project, as well as post development.
    • NYC Housing Preservation and Development: Tax credits
    • NYC Housing Development Corporation: Tax exempt bonds
    • JPMorgan Chase: Financial Institution
    • Enterprise Community Partners: Tax Credit Syndicator
    • Architect: Victor Morales
    • General Contractor: FH-PH Corp.
    • Attorney: Siegel & Reiner