Success Stories > CPC stories
Posted: February 1st, 2010
Poor Management, Troubled Buildings and Neglect
For more than a decade, the property was plagued with poor management, causing the buildings to fall into disrepair. 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 HPD.
Valuable and Life-Impacting Partnerships
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 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.
Thanks to Senator Charles Schumer, a vital partner in this project, Riverdale Osborne Towers secured the approval of over $36M 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 HUD officials to approve city allocations just days before a December 31st deadline.
Michael Lappin, President & 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 and Scope of Work
Financing for renovations came from a $19.4M CPC loan and a $4.99M PLP loan from HPD. Financing will also include $12.1M in equity raised through the sale of 9% Low Income Housing Tax Credits allocated by HPD and $2.5M in additional equity provided by the partnership. A permanent loan will be provided by the NYCERS Pension Fund with SONYMA insurance.
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 installation of all new windows in all units, 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.
Riverdale Osborne Towers Is Transformed Thanks To CPCR’s Unique Public/Private Partnerships
This past holiday season, tenants at Riverdale Osborne Towers celebrated the completion of the $39M renovation of four, nine-story buildings containing a total of 523 affordable units for low-income families in the Brownsville section of Brooklyn.Poor Management, Troubled Buildings and Neglect
For more than a decade, the property was plagued with poor management, causing the buildings to fall into disrepair. 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 HPD.
Valuable and Life-Impacting Partnerships
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 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.
Thanks to Senator Charles Schumer, a vital partner in this project, Riverdale Osborne Towers secured the approval of over $36M 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 HUD officials to approve city allocations just days before a December 31st deadline.
Michael Lappin, President & 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 and Scope of Work
Financing for renovations came from a $19.4M CPC loan and a $4.99M PLP loan from HPD. Financing will also include $12.1M in equity raised through the sale of 9% Low Income Housing Tax Credits allocated by HPD and $2.5M in additional equity provided by the partnership. A permanent loan will be provided by the NYCERS Pension Fund with SONYMA insurance.
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 installation of all new windows in all units, 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.
