Hoboken Patch
By Eric Kiefer
August 2, 2017
The SBL loans, totaling $4.45 million, were used to acquire two small multifamily buildings on Madison Street in Hoboken.
HOBOKEN, NJ — The Community Preservation Corporation (CPC) – a nonprofit, affordable housing and community revitalization finance company – recently announced the closing of two permanent loans under the Freddie Mac Small Balance Loan (SBL) Program.
The loans, totaling $4.45 million, were used to acquire two small multifamily buildings on Madison Street in Hoboken, according to a news release.
The nonprofit delivered a $1.76 million permanent loan for the six-unit walkup at 301 Madison Street, and $2.69 million permanent loan for the 10-unit walkup at 308 Madison Street. Both loans are structured as 10-year fixed-rate terms with three years of interest only payments and 30-year amortization, at a rate of 4.40 percent, the CPC stated.
According to a news release:
“CPC is focused on its core mission of addressing the gap in the market for flexible lending products for small multifamily buildings—a segment of the housing stock that plays a critical role in providing housing for low- and moderate-income families. Freddie Mac’s SBL program is designed to address the need for cost-effective financing solutions for the acquisition and refinancing of small buildings and offers a streamlined process for permanent loans between $1 million and $7.5 million.”
According to the CPC, the SBL product can be used for the acquisition and refinancing of properties with five or more units that may have tax abatements and Section 8 vouchers, senior housing without services, Low-Income Housing Tax Credit properties with Land Use Regulatory Agreements, properties with regulatory agreements with government agencies and properties with space for commercial use.