Governor Hochul, Secretary Fudge, Senator Schumer and Rep. Bowman Announce Approval of Loan Refinance to Maintain Housing Quality and Affordability for Co-op City
Governor Kathy Hochul, Secretary of the United States Department of Housing and Urban Development Marcia Fudge, Senator Charles Schumer and Representative Jamaal Bowman today announced that Riverbay Corporation, the management company of Co-op City, the Department US Housing and Urban Development Corporation, Wells Fargo, New York State Mortgage Agency Mortgage Insurance Fund, and NYC Housing Development Corporation processed and approved refinancing of Department of Housing and Development loans city of Co-op City. The refinancing will maintain the long-term quality and affordability of housing for the tens of thousands of residents who call Co-op City home. The refinance provides the housing corporation with $124 million dollars of proceeds that will be used for capital improvements, including heating, ventilation and air conditioning system upgrades, facade maintenance and electrical system upgrades.
“My administration is committed to maintaining access to safe, quality affordable housing that allows New Yorkers to live with the dignity they deserve,” Governor Hochul said. “This transformative injection of capital funding will allow us to modernize Co-op City, the world’s largest housing co-operative, and ensure long-term affordability for its 45,000 residents.”
US Department of Housing and Urban Development Secretary Marcia L. Fudge said: “We applaud the successful refinancing of the Bronx Cooperative City Complex. The Biden-Harris administration and HUD are committed to stabilizing the housing market nationwide using every tool at our disposal, including using the Federal Housing Administration’s multi-family mortgage insurance as a key funding source, whether supporting larger loans in major metropolitan areas or smaller loans in rural and suburban communities , HUD is proud to be a partner in creating and preserving affordable housing across the country.”
Senator Charles Schumer said: “The Co-op City of the Bronx provides affordable housing for more than 45,000 New Yorkers in an increasingly expensive housing market. That’s why I worked to secure a timely refinancing agreement for Co -op City, which will help maintain the quality, viability and long-term affordability of this one-of-a-kind community.The agreement will also improve the lives of residents by enabling repairs and other improvements, while providing affordable housing for generations to come. We have been pushing and working with HUD to lock in the refinancing and are proud to announce HUD’s approval.”
Representative Jamaal Bowman said: “Co-op City is truly a one-of-a-kind community, home to the largest affordable housing co-op in America and over 45,000 constituents whom I am honored to serve. It is imperative that the Co-op City community has the the funds needed to maintain their affordable housing and commercial spaces, which support all who live there I am proud to have worked alongside the United States Department of Housing and Urban Development under the leadership of Secretary Fudge, Majority Leader Schumer and Governor Hochul to advance a timely refinancing agreement for Riverbay Corp, which will release significant capital funds for urgent repairs.Co-op City is a great example of what co-op housing can look like through this country and I look forward to seeing how this loan refinance will continue to support the creation of this even more sustainable, livable and affordable community.”
Wells Fargo’s $621.5 million restructured mortgage extends affordability an additional 10 years and provides $124 million to the co-op to undertake necessary repairs. With 15,372 homes, Co-op City is the largest co-operative housing development in the world. The New York State Mortgage Agency’s Mortgage Insurance Fund, part of New York State Homes and Community Renewal, and the New York City Housing Development Corporation, will provide credit support with mortgage coverage. loan of $55 million and $15 million, respectively. . The loan includes $15 million for immediate major repairs, including approximately $10 million for repairing balconies and facades, $2.5 million for replacing residential water pumps, and $2.5 million for the replacement of garage elevators. The loan also includes $109 million to replenish a reserve account for future repairs, all without increasing maintenance costs for residents.
Alicka Ampry-Samuel, U.S. Department of Housing and Urban Development Regional Administrator for New York and New Jersey, said: “One of HUD’s top priorities is the preservation of affordable housing, and this refinancing ensures that Co-op City remains affordable for thousands of families. It is also crucial that this development remains safe and that residents continue to live in quality, updated units made possible by the influx of funds from HUD FHA Families in Co-op City will benefit from these upgrades and be able to enjoy their community for many years to come.
Housing and Community Renewal Commissioner RuthAnne Visnauskas said“I am extremely proud of this partnership which will protect affordable homeownership in Co-op City for another 35 years. In addition to keeping maintenance costs stable for residents, the $621.5 million loan will fund much-needed capital repair projects to ensure that all 15,372 homes remain safe and secure for the long term. Generations of New Yorkers have enjoyed the opportunity to live affordably in this vibrant and diverse community while by creating equity to pass on to their children. Through our private and public partners, Co-op City will continue to provide economic opportunity for hard-working families in the Bronx for decades to come.”
State Senator Jamaal Bailey said: “Co-op City is the largest co-op development of its type in the nation and is home to more than 50,000 residents, including the nation’s largest natural retirement community. As we rebuild stronger after a devastating pandemic, this immediate injection of $124 million in funding will advance capital improvements and system-wide infrastructure upgrades and benefit thousands of families in improving quality of life while protecting long-term affordability. I am grateful to our state and federal partners, Governor Hochul, Secretary Fudge, Senator Schumer, Representative Bowman, and Riverbay Corporation for working to secure this refinancing agreement for our residents and this partnership to ensure that Co-op City continues to be a national model of quality, affordable housing and an economically and socially vibrant community. »
Assemblyman Michael Benedetto said: “This is great news for Co-op City and the infusion of cash is greatly needed and greatly appreciated. Many thanks to Governor Hochul for seeing a need and doing the right thing.”
Bronx Borough President Vanessa Gibson said: “Today’s announcement is a huge victory for the residents and families of Co-op City. I am grateful for this important partnership that recognizes Co-op City’s capital needs and this $124 million investment will make a difference to Co-op City’s environmental sustainability. My gratitude to elected officials, to Riverbay Corporation, to our private and financial partners who made this refinancing possible in the best interest of our residents and our families.“
Alan Weiner, director of Wells Fargo Multi Family Capital, said: “Wells Fargo is pleased to have restructured long-term financing for Co-op City. Our commitment to providing long-term financing for affordable and moderate-income housing is unparalleled in the industry. We want to commend our elected partners, Senator Schumer, Rep. Bowman and Governor Hochul, and our partner agencies at HUD, New York State and New York, who worked with us to make this possible.”
NYC Housing Development Corporation President Eric Enderlin said: “Co-op City’s refinancing represents a critical investment in our existing affordable housing stock at a time of dire need. Through the collaboration of our partners and elected officials, this preservation effort will ensure lasting affordability and major repairs that will provide housing stability and improved quality of life for the thousands of New Yorkers who reside in this vibrant community. .”
Co-op City Council President Bernard Cylich said: “This loan will help us maintain our buildings and infrastructure while reducing the need for our residents to pay huge fee increases. On behalf of the Board and residents, I would like to thank all government agencies and elected officials who supported us and worked together to complete this loan.”
Council Member Kevin C. Riley said: “Securing critical investments is fundamental to improving the quality of our life issues that impact our neighborhoods. Thank you Governor Hochul, Secretary Fudge, Senator Schumer, and Congressman Bowman for hearing the needs of our co-op city residents in the 12th Ward and providing $124 million to maintain sustainable and affordable housing. . In the world’s largest housing co-op, Co-op City families stand generation after generation proud of their community. This investment ensures that they can continue to be high for generations to come.
The 2012 Wells Fargo mortgage loan to Riverbay Corporation, owner of Co-op City, was the largest ever insured under the Department of Housing and Urban Development Sec. 223(f) program, which protects lenders against losses in the event of a mortgage default in multifamily properties.
Co-op City is home to over 45,000 residents on 320 acres – the nation’s largest co-op development. The site has several schools, three shopping centers and its own power station. It has allowed tens of thousands of families to grow up in a stable, middle-class community. This refinancing arrangement will help ensure that tens of thousands more have the same opportunity and provide a product to make capital investments that will benefit residents for years to come.