Tuesday, June 12, 2012

World's Greatest Bank Finances Project for One of NYC's Leading Affordable Housing Providers


Morgan Stanley Provides Financing to Kick-Start Preservation of Distressed Residential Buildings in the Bronx. Financing Will Help Four of New York City’s Most Distressed Multi-family Residential Properties to Undergo Eventual Rehabilitation.        


Morgan Stanley (NYSE: MS) has provided multi-million dollar interim financing to Workforce Housing Advisors, Inc. (WFHA) to make possible the rehabilitation of four multi-family buildings with 120 units in the Bronx.

The four buildings, located at 2239, 2241, 2323 and 2333 Creston Avenue, have deteriorated significantly in recent years, amassing building code violations, as well as municipal liens and fines.

The buildings, which are occupied, have been placed in the New York City Department of Housing Preservation and Development’s (HPD) Alternative Enforcement Program, which annually targets the 200 most distressed multi-family residential properties in the City for intervention.  WFHA, in partnership with the NYC Partnership Housing Development Fund Company Inc., a not-for-profit housing development fund company, has taken ownership of the buildings.

The interim financing provided by Morgan Stanley allows WFHA to pay down the municipal arrears and move forward with preparations to renovate the buildings.  HPD expects to provide a low-interest loan through its Preservation Participation Loan Program, in conjunction with more conventional financing and Low Income Housing Tax Credits, to fund the rehabilitation of the properties and preserve them as affordable for current and future tenants.  In the last two years, this type of public-private financing in partnership with HPD has stabilized 1,500 units in comparably distressed and overleveraged properties, effectively preserving the housing as affordable over the long term.

“We appreciate Morgan Stanley's leadership in stepping up to partner with us on this project,” said John A. Crotty, founding partner of Workforce Housing Advisors.  “Their support will allow us to take the critical first step of a long-term process to transform four buildings in the Bronx in significant need of rehabilitation and make a substantial difference in the lives of the working families who reside there.”

Said Audrey Choi, Head of Global Sustainable Finance at Morgan Stanley: “We are committed to supporting affordable housing in our communities.  We see this as a unique opportunity to improve the living conditions of families and individuals in need of sound, affordable housing in the Bronx.”

Part of the financing provided by Morgan Stanley allows for payment to the City of three-quarters of a million dollars to clear liens due to unpaid taxes, municipal charges and emergency repair expenditures.  Without the new financing, the high holding costs would have continued to burden the properties, further delaying the shift to rehabilitation.

“It takes many steps and many partners to rescue and restore distressed affordable housing,” said HPD Commissioner Mathew M. Wambua.  “The buildings on Creston Avenue have miles to go before their tenants will be able to feel comfortable and secure.  But we are on the right path – and welcome Morgan Stanley as a new partner in our ongoing efforts to preserve the City’s existing multi-family housing stock.  The financing they have provided has kick-started the turnaround process, and that is a commitment for which we are gratified.  More importantly, by making this commitment, they agree as we do, that financing housing in our City is a very sound investment in our collective future.”

In the last two years, HPD financing has stabilized 1,500 units in distressed and overleveraged properties, including two other transactions with Workforce Housing Advisors, with 174 more distressed units slated to begin construction by the start of the summer.

About Morgan Stanley
Morgan Stanley is a leading global financial services firm providing a wide range of investment banking, securities, investment management and wealth management services.  The Firm's employees serve clients worldwide including corporations, governments, institutions and individuals from more than 1,300 offices in 43 countries.  Since 2006, Morgan Stanley has executed more than $5 billion in loans and investments to strengthen underserved communities.  For further information about Morgan Stanley, please visit www.morganstanley.com.


About the NYC Department of Housing Preservation and Development (HPD)
HPD is the nation’s largest municipal housing preservation and development agency.  Its mission is to promote quality housing and viable neighborhoods for New Yorkers through education, outreach, loan and development programs and enforcement of housing quality standards.  It is responsible for implementing Mayor Bloomberg’s New Housing Marketplace Plan to finance the construction or preservation of 165,000 units of affordable housing by 2014.  Since the plan’s inception, more than $19.4 billion has been invested or leveraged by the City to finance the creation or preservation of more than 130,606 affordable homes.  For more information, visit www.nyc.gov/hpd.


About Workforce Housing Advisors
Workforce Housing Advisors operates in the multi-family real estate market in the New York metropolitan area by repositioning distressed assets as affordable housing resources.  It works collaboratively with for-profit, not-for-profit and government partners to execute redevelopment plans for properties that had previously been subject to financial and physical distress.


Contact: Media Relations, Sandra Hernandez, 212.761.2446

15 comments:

  1. Hey, I just stopped in to visit your site and thought I'd say thanks for having me.

    ReplyDelete
  2. Hey, I just stopped by to visit your website and thought I'd say I had a great visit.

    ReplyDelete
  3. Hi, i feel that i saw you visited my web site thus i came to “go back the favor”.I am attempting to in finding issues to improve my web site!I guess its ok to make use of some of your ideas!!

    ReplyDelete
  4. I reckon something genuinely interesting about your blog so I bookmarked .

    ReplyDelete
  5. I admired your intriguing blog. good information. I hope you produce more. I will continue subscribing

    ReplyDelete
  6. Very interesting information!Perfect just what I was searching for!

    ReplyDelete
  7. Pc-urgence depannage informatique...

    [...]Workforce Housing Advisors – World’s Greatest Bank Finances Project for One of NYC’s Leading Affordable Housing Providers….[...]...

    ReplyDelete
  8. real estate philippines...

    [...]Workforce Housing Advisors – World’s Greatest Bank Finances Project for One of NYC’s Leading Affordable Housing Providers….[...]...

    ReplyDelete
  9. philippine real estate...

    [...]Workforce Housing Advisors – World’s Greatest Bank Finances Project for One of NYC’s Leading Affordable Housing Providers….[...]...

    ReplyDelete
  10. quickmortgageloans.org...

    [...]Workforce Housing Advisors – World’s Greatest Bank Finances Project for One of NYC’s Leading Affordable Housing Providers….[...]...

    ReplyDelete
  11. credit cards for people with bad credit scores...

    [...]Workforce Housing Advisors – World’s Greatest Bank Finances Project for One of NYC’s Leading Affordable Housing Providers….[...]...

    ReplyDelete
  12. I'm glad none of the answerers work for me. Sheesh if I lineestd to folks like these I'd want to shoot myself. Iggy_68 has the best answer. Talk to a good mortgage broker in your area that knows about the my community program (if you are a 1st time buyer) or the flex 100 program if you've owned a house in the past. FannieMae will buy it as long as you debt ratio and you can't have any outstanding judgements. Your PMI (mortgage insurance) will be a killer though. Maybe as much as 20-30% of the amount of the payment.Talk to a mortgage broker (one with experience, at least 5 or more years in the business) They can pull you and your brothers credit 1 time and shop it to several lenders. All things being equal I think Bank of America, Suntrust, BB T, Citizens Home Loan, Ideal Mortgage, Interfirst, or Liberty Savings Bank may write this one. Good Luck!

    ReplyDelete
  13. Fantastic Sites...

    [...]this is absolutely fantastic, added your site to my list[...]...

    ReplyDelete
  14. Thanks for great artlice...

    [...]Workforce Housing Advisors – World’s Greatest Bank Finances Project for One of NYC’s Leading Affordable Housing Providers….[...]...

    ReplyDelete
  15. Hello Everybody,
    My name is Mrs.Irene Query. I live in Philippines and i am a happy woman today? and i told my self that any lender that rescue my family from our poor situation, i will refer any person that is looking for loan to him, he gave me happiness to me and my family, i was in need of a loan of $150,000.00 to start my life all over as i am a single mother with 2 kids I met this honest and GOD fearing man loan lender that help me with a loan of$150,000.00 US. Dollar, he is a GOD fearing man, if you are in need of loan and you will pay back the loan please contact him tell him that is Mrs.Irene Query, that refer you to him. contact Dr Purva Pius,via email:(urgentloan22@gmail.com) Thank you.

    ReplyDelete