Local construction and development company awards $1 million to local affordable housing nonprofit through permanent bond conversion
RYE, N.Y. (July 23, 2015) – Mountco Construction and Development Corp. (Mountco) today announced a major milestone in its Rye Manor project, ensuring the preservation of 100 affordable housing units for Rye seniors through 2045. Mountco also announced a $1 million payment to the RyeInterfaith Housing Corporation. This is in addition to $1 million that Mountco has already paid to Rye Interfaith to fund operating costs and provide seed money for local affordable housing developments.
Built 25 years ago, Rye Manor required extensive renovation in order to be maintained as an affordable housing resource. Mountco partnered with RyeManor HDFC, the original owner of the development and negotiated a financing package that allowed the company to pay off the existing HUD mortgage and provide the necessary repairs and improvements without passing down costs to tenants.
The project was financed through tax-exempt bonds issued by the Westchester County Industrial Development Agency and an allocation of Federal low-Income Tax Credits from the New York State Housing Finance Agency. Mountco’s funding partners in the project are Citibank, which purchased the bonds and First Sterling, which purchased the tax credits.
“Rye Manor marks Mountco’s 12th affordable housing preservation project in collaboration with a local nonprofit, and we’re particularly proud that each of those projects generated significant funding for nonprofit and municipal partners – all without raising rents a penny, ” said Mountco President and Founder Joel Mounty. “Thanks to our management company, Community Housing Management Corp., and our financial partners: the Westchester Industrial Development Agency; Citi Bank, which has funded six of our projects; and First Sterling, which has partnered with us on six affordable housing developments.”
“When this affordable development was built in 1987, the government was there to make it happen,” said NYS Homes and Community Renewal Commissioner/CEO James S. Rubin. “Our role in 2015 is to help preserve this essential asset – 100 apartments that have been safe, secure and affordable homes for so many seniors. Thanks to our shared commitment and hard work, we’ve protected this affordable housing as an irreplaceable resource in the heart of a vibrant and beautiful community. The people who live here now can be assured that this will remain their home for years to come.”
“Westchester County is proud to have provided Rye Manor with the financial support to rehabilitate 100 affordable housing unites. By taking advantage of the resources that Westchester County IDA offers, the Rye Manor redevelopment project will provide health and safe affordable senior housing for years to come,” said Westchester County Executive Robert P. Astorino.
The project created 75 construction jobs and significant construction contracting opportunities for minority and women owned businesses. Additionally, the project generated $200,000 in municipal impact and other fees to the city, and will generate a $70,000 annual increase in PILOT payments.
“The Rye Manor Development has been a very positive addition to our community since it was constructed over 28 years ago. The city is very pleased that it was able to help our seniors by providing a pilot agreement which assisted in the new refinancing,” said Rye Mayor Joseph A. Sack.
“When the Rye Manor Board, Mountco and Community Housing Management explained their redevelopment plans to the tenants in 2013, we agreed to support their plan. We are very happy that we did because the project turned out great,” said Josephine Delmonte of the Rye Manor Tenant Association. “Rye Manor has been a lovely place to make our home, and now we know that it will continue to be a safe and attractive place to live for many years to come.”
“Our Board wanted to make sure that we could preserve Rye Manor as an affordable housing development and completely renovate the property in a way that generated additional funds for the City without costing the tenants more money,” said Bruce Macleod, President of Rye Interfaith Housing Corporation. “We were able to do that and the fact that our corporation is receiving a fee for our work is just a bonus. We had the opportunity to work with other development groups, but the way things turned out we are very pleased we selected Mountco as our partner.”
The 74,000 square foot development remained fully occupied by residents throughout the renovations, which included: exterior masonry repair and new windows, glazing new roofing, new kitchen cabinets and appliances and baths, new flooring and paint, upgrades to the heating system, elevators, and new light fixtures, outlets and electric panels.