This 19-story, 360-unit former Mitchell-Lama property was built in 1974 and left the affordable housing program in 2006. The tenants, the majority of which are low-income and receive Section 8, have lived at Ocean Towers for years and experienced its physical decline due to the neglect of its prior ownership.
When the new owners, The Community Development Trust (CDT) and Proto Property Services took over Ocean Towers, most building systems and common areas were original to the 1970s construction and were in need of replacement.
CPC provided a $36 million SONYMA-insured NYCRS permanent loan as part of a financing package to fund the acquisition and rehabilitation of Ocean Towers. In conjunction with subsidy from HPD, the financing will also ensure the property remains in an affordability program for 30 years.
The rehabilitation included installing new elevators, converting the heating system from electric to gas, individual electric metering, constructing elevated rooms to house the new boilers, installing a new domestic hot water plant, improving the security system, and updating the common areas.
It is partnerships like this, which also included the New York City Acquisition Fund, Enterprise, the New York City Council, and the New York State Energy Research and Development Authority (NYSERDA), that play a key role in securing the resources necessary to help upgrade and preserve New York City’s affordable workforce housing stock.