Brooklyn Nonprofit Secures Four Distressed Mortgages for Affordable Development
In a groundbreaking sale that opened the tap on a new city loan fund created to preserve affordable housing, a nonprofit developer has purchased the distressed mortgages of four foreclosed residential buildings in Brooklyn, as reported by The Wall Street Journal.
The Brooklyn affordable-housing developer MHANY Inc. distinguished itself as the first nonprofit to buy an over-leveraged mortgage in New York City when it purchased the four deteriorating apartment buildings, located in Bedford-Stuyvestant, Crown Heights and East New York, from New York Community Bank. The nonprofit developer’s acquisition pivoted on a $1.35 million loan from a new program of the
New York City Acquisition Fund.
The program’s aim is to help level the playing field for affordable-housing developers who are interested in buying discounted properties and keeping them affordable — a class of developer that is often edged out by private firms with bigger pockets and more room for risk.