State and Local Government Backing Supports Refinancing to Provide Immediate Injection of $124 Million to Make Repairs and Upgrades for 45,000 Co-op City Residents
Refinance Will Help Ensure Quality Housing in World's Largest Housing Cooperative
Governor Kathy Hochul, U.S. Department of Housing and Urban Development Secretary Marcia Fudge, Senator Charles Schumer, and Representative Jamaal Bowman today announced that Riverbay Corporation, the management company for Co-op City, the U.S. Department of Housing and Urban Development, Wells Fargo, the Mortgage Insurance Fund of the State of New York Mortgage Agency, and NYC Housing Development Corporation have processed and approved Co-op City's Department of Housing and Urban Development loan refinance. The refinance will maintain long-term housing quality and affordability for the tens of thousands of residents who call Co-op City home. Refinancing provides the housing company with $124 million in proceeds that will be used for capital improvements, including upgrades to the heating, ventilation, and air conditioning system, façade maintenance, and electrical system upgrades.
"My administration is committed to maintaining access to safe, quality affordable housing that enables New Yorkers to live with the dignity they deserve," Governor Hochul said. "This transformative injection of capital funding will allow us to modernize Co-op City, the largest housing cooperative in the world, and ensure long-term affordability for its 45,000 residents."
United States Department of Housing and Urban Development Secretary Marcia L. Fudge said, "We applaud the successful completion of the refinance for the Bronx's Co-op City Complex. The Biden-Harris Administration and HUD are committed to stabilizing the housing market nationwide using every tool at our disposal, including utilizing Federal Housing Administration multifamily mortgage insurance as a key financing source. From supporting larger loans in major metropolitan areas to smaller loans in rural communities and suburbs, HUD is proud to be a partner in creating and preserving affordable housing across the country."
Senator Charles Schumer said, "The Bronx's Co-op City provides an affordable home to more than 45,000 New Yorkers in an increasingly expensive housing market. That's why I worked to secure a timely refinance agreement for Co-op City, which will help maintain the quality, viability and long-term affordability of this one-of-a-kind community. The deal will also improve the lives of the residents by allowing repairs and other improvements to be made, all while providing affordable housing for generations to come. We haven't stopped pushing and working with HUD to lock in the refinance and we are proud to announce HUD approval."
Representative Jamaal Bowman said, "Co-op City is truly a one-of-a-kind community, home to the largest affordable housing cooperative in America and more than 45,000 constituents that I am honored to serve. It is imperative that the Co-op City community has the funds needed to maintain their affordable housing and commercial space, which supports all who live there. I am proud to have worked alongside the U.S. Department of Housing and Urban Development under Secretary Fudge's leadership, Majority Leader Schumer, and Governor Hochul to advance a timely refinance agreement for Riverbay Corp, which will unlock significant capital funds for urgent repairs. Co-op City is a prime example of what cooperative housing can look like across this nation and I look forward to seeing how this loan refinance will continue to support making this community even more sustainable, livable and affordable."
The restructured $621.5 million mortgage loan from Wells Fargo extends the term of affordability for an additional 10 years and provides $124 million for the cooperative to undertake necessary capital repairs. With 15,372 homes, Co-op City is the largest cooperative housing development in the world. The Mortgage Insurance Fund of the State of New York Mortgage Agency, which is part of New York State Homes and Community Renewal, and the New York City Housing Development Corporation, will provide credit support with $55 million and $15 million coverage of the loan, respectively. The loan includes $15 million for immediate capital repairs, including approximately $10 million for balcony and façade repair, $2.5 million for the replacement of residential water pumps and $2.5 million for the replacement of garage elevators. The loan also includes $109 million to replenish a reserve account for future repairs, all without raising maintenance charges for residents.
Bronx Borough President Vanessa Gibson said, “Today’s announcement is a huge win for the residents and families of Co-op City. I am grateful for this important partnership that acknowledges the capital needs of Co-op City and this $124M investment will make a difference for Co-op City’s environmental sustainability. My gratitude to the elected officials, Riverbay Corporation, our private and financial partners who made this refinancing possible for the best interests of our residents and families.“
The 2012 Wells Fargo mortgage loan to Riverbay Corporation, which owns Co-op City, was the largest ever insured under the Department of Housing and Urban Development's Sec. 223(f) program, which protects lenders against loss on mortgage defaults at multifamily properties.
Co-op City is home to over 45,000 residents on 320 acres - the single largest co-op development in the country. The site has multiple schools, three commercial malls, and its own power plant. It has provided tens of thousands of families the opportunity to grow up in a stable middle-class community. This refinancing arrangement will help ensure tens of thousands more have that same opportunity and provide proceeds to make capital investments that will benefit residents for years to come.