Press Room > Press Releases
Contact: Brenda Ratliff, V.P. for Communications
212-869-5300 x568 bratliff@communityp.com
Posted: December 7th, 2009
For more than a decade, the property located at 440 Watkins Street, was plagued with poor management, causing the buildings to eventually fall into disrepair. Riverdale Osborne Towers tenants endured awful living conditions, which included rodents, gaping ceiling holes that caused apartment flooding when it rained, dangerous gas leaks, non-flushing toilets, waves of crime, rotting walls and trash pile ups. One of the worst issues was non-working elevators, which especially impacted individuals in wheelchairs or mothers with heavy strollers, forcing them to take a working elevator in another building and walk to their own building across the roof and down several flights of stairs, which was unsafe and unguarded against potential crime. Over the years, Riverdale Osborne Towers racked up hundreds of violations from The NYC Department of Housing Preservation and Development (HPD).
Recognizing that something had to be done, Catholic Charities interceded in 2005. After reviewing the overall situation and developing a long-term strategy to preserve affordability, they selected CPCR to re-develop the site and oversee the renovations. East Brooklyn Congregations (EBC), which has been responsible for the transformation of many vacant blocks in the East Brooklyn community through its Nehemiah Plan, played an integral part in making sure changes were made at Riverdale Osborne. EBC, who had offices on the property, recognized the poor conditions the families were living in and helped tenants to organize, fight for their rights and work with Catholic Charities and CPCR to make sure new management fixed the problems plaguing the building.
Thanks to the involvement of Senator Charles Schumer, a vital partner in this project, Riverdale Osborne Towers secured the approval of over $36 million in city tax credits and loans, for a total development cost of $39 million that were very close to expiring in late 2007. Successfully, Senator Schumer persuaded Housing and Urban Development officials to approve city allocations just days before a December 31st deadline.
“I am so proud to see that officials of all levels of our government are seriously addressing the issues and concerns of Brownsville by providing the resources that it deserves,” stated Congresswoman Yvette D. Clarke. “I am happy to say that Riverdale Osborne Towers Housing Associates LLC was awarded $1,492,506 in grant funding from the Stimulus Package passed earlier this year to help supplement the rehabilitation cost. Again, I am happy to take part in such a great celebration and I look forward to witnessing the fruits of this endeavor.”
Michael Lappin, president and CEO of CPC Resources and The Community Preservation Corporation, said, “Through our unique partnership with the Diocese of Brooklyn and Queens and the Archdiocese of New York, CPCR is embarking on a multi-year program to redevelop more than 50 properties into thousands of units of affordable housing. The seeds for this special partnership were planted through the work that our organizations did together in making the rehabilitation of the Riverdale Osborne Towers a success. It will be a model for how we work together to provide quality, affordable housing to New York’s low-income families.”
Financing for the renovations came from a $19.4 million CPC construction loan and a $4.99 million PLP loan from HPD. Financing will also include $12.1 million in equity raised through the sale of 9% Low Income Housing Tax Credits allocated by HPD and $2.5 million in additional equity provided by the partnership. A permanent loan will be provided by the NYCERS Pension Fund with SONYMA insurance.
“HUD has no greater priority than ensuring that HUD-subsidized developments provide its residents with decent, safe and affordable housing,” said Teresa Bainton, Director of Multifamily Housing in HUD’s New York Regional Office. “That is why I am so pleased and proud of CPC Resources and Catholic Charities’ commitment to creating quality affordable housing that will help to transform the lives of countless numbers of families throughout New York City. This was a true public-private partnership that HUD is very proud to have been part of and that, hopefully, can serve as a road map for other troubled developments to follow.”
“Everybody deserves to come home to a place where they can feel safe and secure. The extraordinary commitment that produced this success story has helped ensure we can provide that peace of mind for the hundreds of New York families here at the Riverdale Osborne Towers,” said HPD Commissioner Rafael E. Cestero. “Preserving the City’s affordable housing stock is a critical component in our efforts to stabilize and strengthen New York neighborhoods. I thank Senator Schumer for his leadership, and our partners like CPCR, Catholic Charities, and East Brooklyn Congregation for helping us to create new opportunity through the preservation and protection of this affordable housing here in the Brownsville community.”
“The preservation of affordable housing is critical to health and vitality of New York City’s neighborhoods,” said Bill Frey, Senior Vice President, Enterprise Community Partners, Inc. “Enterprise’s is proud to have invested $12.1 million in tax credit equity for the rehabilitation of Riverdale Osborne Apartments. This project exemplifies our deep commitment to making sure that every New Yorker has a safe and affordable place to call home and we will continue to advocate for the continued investment in affordable rental housing in New York City and across the country.“
Monsignor Alfred LoPinto, Vicar for Human Services, Diocese of Brooklyn, said “Catholic Charities is delighted with the wonderful transformation CPCR has accomplished at Riverdale Osborne. The improvement in the living conditions is a testament to a deep respect for the tenants and their families. The residents of Riverdale Osborne Towers now have the quality housing they deserve thanks to the hard work of Senator Schumer, CPCR, HUD, EBC, HPD and Latham & Watkins, and the Catholic Charities Progress of Peoples Development Corporation.”
“Home should be a safe haven, and no one should have to endure dangerous and unhealthy living conditions,” said Robert Siebel, Chief Executive Officer, Catholic Charities Brooklyn and Queens. “Through this project, we have brought positive changes to the lives of Riverdale Osborne tenants and rebuilt a vital part of the Brownsville community. We are pleased to be a part of this transformative event.”
”Before this transformation, every time I walked into my building, I had to pray that at least one of our elevators would be working,” said Jacqueline Melendez, an EBC tenant leader and resident of a ninth floor apartment. “Now thanks to the hard work of the EBC tenant leaders, and our partners like CPC, I no longer have to worry about that. Our buildings have been radically transformed for the better in many ways, and we will continue to work with CPC to ensure that this spectacular progress continues.”
CPCR proposed a financial structure to preserve the property as affordable housing and tapped proven, “hands on” partners and property managers Demetrios Moragianis and John Lankenau to help transform the property into quality housing for the more than 1,500 residents who live there.
Renovations included the installation of all new windows in all apartments, two new roofs, three new boilers, replacement of all 8 elevators, new kitchens in every unit, ceramic tile in the hallways, two new state-of-the-art gas-fired furnaces for heat & hot water, replacement of exterior parapet and deteriorating brick work and a new intercom system. Security cameras were installed and security guards were hired to patrol the grounds. New gates and new apartment entry doors were installed. A new lobby entrance and management office were created to further enhance security.
Mr. Moragianis said, “When there is cause for change and betterment, no task is too great! Riverdale Osborne Towers reflects the careful planning and pooling of resources that made it possible to bring quality of living to its residents.”
# # #
CPC Resources, Inc. (CPCR) is the for-profit development subsidiary of The Community Preservation Corporation (CPC), a not-for-profit mortgage lender that has financed more than $7 billion of affordable housing since its founding in 1974. CPCR has developed or rehabilitated more than 136,000 units throughout New York State, including Parkchester Apartments in the Bronx, representing an investment of over $600 million in affordable housing.
Catholic Charities Progress of Peoples Development Corporation Since 1975, the Catholic Charities Progress of Peoples Development Corporation (CCPOP), the housing affiliate of Catholic Charities Brooklyn and Queens, has served as a catalyst for growth in neighborhoods throughout Brooklyn and Queens, seeking to transform not only vacant land and buildings, but the lives of individuals and families. In the past thirty-three years, CCPOP has completed nearly 3,000 units of housing including 2,090 units for low-income senior citizens, 480 units of family housing and 377 units of supportive housing for formerly homeless individuals. More important than these numbers, POP builds housing with a vital link to social services, instilling a sense of home, community and family to its residents.
East Brooklyn Congregations
East Brooklyn Congregations (EBC) is a broad-based, multi-racial, non-partisan, community organization made up of 32 members institutions (churches, schools and neighborhood associations), located primarily in the East New York, Brownsville, Bushwick, and Bedford Stuyvesant communities. EBC’s purpose is to help ordinary people from our member institutions to gain the power to win improvements on specific issues of importance to them and to improve the quality of life in Brooklyn. EBC’s victories include the construction of over 3,000 affordable homes, the founding of two small public high schools, and pushing the City to start many more, significant improvements in public safety, amongst many others.
NYC Department of Housing Preservation and Development (HPD)
HPD’s mission is to promote quality housing and viable neighborhoods for New Yorkers. It is the nation's largest municipal housing preservation and development agency. Responsible for implementing Mayor Bloomberg's New Housing Marketplace Plan to build and preserve 165,000 units of affordable housing, HPD also actively promotes the preservation of affordable housing through education, outreach, loan programs and enforcement of housing quality standards. For more information visit www.nyc.gov/hpd.
Enterprise
Enterprise is a leading provider of the development capital and expertise it takes to create decent, affordable homes and rebuild communities. For more than 25 years, Enterprise has introduced neighborhood solutions through public-private partnerships with financial institutions, governments, community organizations and others that share our vision. Enterprise has raised and invested more than $10 billion in equity, grants and loans to help build or preserve more than a quarter million affordable rental and for-sale homes to create vital communities. Enterprise is currently investing in communities at a rate of $1 billion a year. In New York, Enterprise has housed nearly 100,000 men, women and children and developed nearly 30,000 affordable homes. Visit www.enterprisecommunity.org and www.enterprisecommunity.com to learn more about Enterprise's efforts to build communities and opportunity.
THIS HOLIDAY SEASON TENANTS REJOICE AS $39 MILLION RENOVATION MARKS THE REBIRTH OF RIVERDALE OSBORNE TOWERS
Brooklyn, December 6, 2009 – CPC Resources (CPCR), Catholic Charities Progress of Peoples Development Corporation (CCPOP), East Brooklyn Congregations (EBC) and community residents were joined by Congresswoman Yvette D. Clarke, 11th Congressional District and other state and local government and housing officials as they celebrated the complete rehabilitation of Riverdale Osborne Towers - four, 9-story buildings containing an aggregate of 523 affordable units for low-income families in the Brownsville section of Brooklyn.For more than a decade, the property located at 440 Watkins Street, was plagued with poor management, causing the buildings to eventually fall into disrepair. Riverdale Osborne Towers tenants endured awful living conditions, which included rodents, gaping ceiling holes that caused apartment flooding when it rained, dangerous gas leaks, non-flushing toilets, waves of crime, rotting walls and trash pile ups. One of the worst issues was non-working elevators, which especially impacted individuals in wheelchairs or mothers with heavy strollers, forcing them to take a working elevator in another building and walk to their own building across the roof and down several flights of stairs, which was unsafe and unguarded against potential crime. Over the years, Riverdale Osborne Towers racked up hundreds of violations from The NYC Department of Housing Preservation and Development (HPD).
Recognizing that something had to be done, Catholic Charities interceded in 2005. After reviewing the overall situation and developing a long-term strategy to preserve affordability, they selected CPCR to re-develop the site and oversee the renovations. East Brooklyn Congregations (EBC), which has been responsible for the transformation of many vacant blocks in the East Brooklyn community through its Nehemiah Plan, played an integral part in making sure changes were made at Riverdale Osborne. EBC, who had offices on the property, recognized the poor conditions the families were living in and helped tenants to organize, fight for their rights and work with Catholic Charities and CPCR to make sure new management fixed the problems plaguing the building.
Thanks to the involvement of Senator Charles Schumer, a vital partner in this project, Riverdale Osborne Towers secured the approval of over $36 million in city tax credits and loans, for a total development cost of $39 million that were very close to expiring in late 2007. Successfully, Senator Schumer persuaded Housing and Urban Development officials to approve city allocations just days before a December 31st deadline.
“I am so proud to see that officials of all levels of our government are seriously addressing the issues and concerns of Brownsville by providing the resources that it deserves,” stated Congresswoman Yvette D. Clarke. “I am happy to say that Riverdale Osborne Towers Housing Associates LLC was awarded $1,492,506 in grant funding from the Stimulus Package passed earlier this year to help supplement the rehabilitation cost. Again, I am happy to take part in such a great celebration and I look forward to witnessing the fruits of this endeavor.”
Michael Lappin, president and CEO of CPC Resources and The Community Preservation Corporation, said, “Through our unique partnership with the Diocese of Brooklyn and Queens and the Archdiocese of New York, CPCR is embarking on a multi-year program to redevelop more than 50 properties into thousands of units of affordable housing. The seeds for this special partnership were planted through the work that our organizations did together in making the rehabilitation of the Riverdale Osborne Towers a success. It will be a model for how we work together to provide quality, affordable housing to New York’s low-income families.”
Financing for the renovations came from a $19.4 million CPC construction loan and a $4.99 million PLP loan from HPD. Financing will also include $12.1 million in equity raised through the sale of 9% Low Income Housing Tax Credits allocated by HPD and $2.5 million in additional equity provided by the partnership. A permanent loan will be provided by the NYCERS Pension Fund with SONYMA insurance.
“HUD has no greater priority than ensuring that HUD-subsidized developments provide its residents with decent, safe and affordable housing,” said Teresa Bainton, Director of Multifamily Housing in HUD’s New York Regional Office. “That is why I am so pleased and proud of CPC Resources and Catholic Charities’ commitment to creating quality affordable housing that will help to transform the lives of countless numbers of families throughout New York City. This was a true public-private partnership that HUD is very proud to have been part of and that, hopefully, can serve as a road map for other troubled developments to follow.”
“Everybody deserves to come home to a place where they can feel safe and secure. The extraordinary commitment that produced this success story has helped ensure we can provide that peace of mind for the hundreds of New York families here at the Riverdale Osborne Towers,” said HPD Commissioner Rafael E. Cestero. “Preserving the City’s affordable housing stock is a critical component in our efforts to stabilize and strengthen New York neighborhoods. I thank Senator Schumer for his leadership, and our partners like CPCR, Catholic Charities, and East Brooklyn Congregation for helping us to create new opportunity through the preservation and protection of this affordable housing here in the Brownsville community.”
“The preservation of affordable housing is critical to health and vitality of New York City’s neighborhoods,” said Bill Frey, Senior Vice President, Enterprise Community Partners, Inc. “Enterprise’s is proud to have invested $12.1 million in tax credit equity for the rehabilitation of Riverdale Osborne Apartments. This project exemplifies our deep commitment to making sure that every New Yorker has a safe and affordable place to call home and we will continue to advocate for the continued investment in affordable rental housing in New York City and across the country.“
Monsignor Alfred LoPinto, Vicar for Human Services, Diocese of Brooklyn, said “Catholic Charities is delighted with the wonderful transformation CPCR has accomplished at Riverdale Osborne. The improvement in the living conditions is a testament to a deep respect for the tenants and their families. The residents of Riverdale Osborne Towers now have the quality housing they deserve thanks to the hard work of Senator Schumer, CPCR, HUD, EBC, HPD and Latham & Watkins, and the Catholic Charities Progress of Peoples Development Corporation.”
“Home should be a safe haven, and no one should have to endure dangerous and unhealthy living conditions,” said Robert Siebel, Chief Executive Officer, Catholic Charities Brooklyn and Queens. “Through this project, we have brought positive changes to the lives of Riverdale Osborne tenants and rebuilt a vital part of the Brownsville community. We are pleased to be a part of this transformative event.”
”Before this transformation, every time I walked into my building, I had to pray that at least one of our elevators would be working,” said Jacqueline Melendez, an EBC tenant leader and resident of a ninth floor apartment. “Now thanks to the hard work of the EBC tenant leaders, and our partners like CPC, I no longer have to worry about that. Our buildings have been radically transformed for the better in many ways, and we will continue to work with CPC to ensure that this spectacular progress continues.”
CPCR proposed a financial structure to preserve the property as affordable housing and tapped proven, “hands on” partners and property managers Demetrios Moragianis and John Lankenau to help transform the property into quality housing for the more than 1,500 residents who live there.
Renovations included the installation of all new windows in all apartments, two new roofs, three new boilers, replacement of all 8 elevators, new kitchens in every unit, ceramic tile in the hallways, two new state-of-the-art gas-fired furnaces for heat & hot water, replacement of exterior parapet and deteriorating brick work and a new intercom system. Security cameras were installed and security guards were hired to patrol the grounds. New gates and new apartment entry doors were installed. A new lobby entrance and management office were created to further enhance security.
Mr. Moragianis said, “When there is cause for change and betterment, no task is too great! Riverdale Osborne Towers reflects the careful planning and pooling of resources that made it possible to bring quality of living to its residents.”
# # #
CPC Resources, Inc. (CPCR) is the for-profit development subsidiary of The Community Preservation Corporation (CPC), a not-for-profit mortgage lender that has financed more than $7 billion of affordable housing since its founding in 1974. CPCR has developed or rehabilitated more than 136,000 units throughout New York State, including Parkchester Apartments in the Bronx, representing an investment of over $600 million in affordable housing.
Catholic Charities Progress of Peoples Development Corporation Since 1975, the Catholic Charities Progress of Peoples Development Corporation (CCPOP), the housing affiliate of Catholic Charities Brooklyn and Queens, has served as a catalyst for growth in neighborhoods throughout Brooklyn and Queens, seeking to transform not only vacant land and buildings, but the lives of individuals and families. In the past thirty-three years, CCPOP has completed nearly 3,000 units of housing including 2,090 units for low-income senior citizens, 480 units of family housing and 377 units of supportive housing for formerly homeless individuals. More important than these numbers, POP builds housing with a vital link to social services, instilling a sense of home, community and family to its residents.
East Brooklyn Congregations
East Brooklyn Congregations (EBC) is a broad-based, multi-racial, non-partisan, community organization made up of 32 members institutions (churches, schools and neighborhood associations), located primarily in the East New York, Brownsville, Bushwick, and Bedford Stuyvesant communities. EBC’s purpose is to help ordinary people from our member institutions to gain the power to win improvements on specific issues of importance to them and to improve the quality of life in Brooklyn. EBC’s victories include the construction of over 3,000 affordable homes, the founding of two small public high schools, and pushing the City to start many more, significant improvements in public safety, amongst many others.
NYC Department of Housing Preservation and Development (HPD)
HPD’s mission is to promote quality housing and viable neighborhoods for New Yorkers. It is the nation's largest municipal housing preservation and development agency. Responsible for implementing Mayor Bloomberg's New Housing Marketplace Plan to build and preserve 165,000 units of affordable housing, HPD also actively promotes the preservation of affordable housing through education, outreach, loan programs and enforcement of housing quality standards. For more information visit www.nyc.gov/hpd.
Enterprise
Enterprise is a leading provider of the development capital and expertise it takes to create decent, affordable homes and rebuild communities. For more than 25 years, Enterprise has introduced neighborhood solutions through public-private partnerships with financial institutions, governments, community organizations and others that share our vision. Enterprise has raised and invested more than $10 billion in equity, grants and loans to help build or preserve more than a quarter million affordable rental and for-sale homes to create vital communities. Enterprise is currently investing in communities at a rate of $1 billion a year. In New York, Enterprise has housed nearly 100,000 men, women and children and developed nearly 30,000 affordable homes. Visit www.enterprisecommunity.org and www.enterprisecommunity.com to learn more about Enterprise's efforts to build communities and opportunity.
