Related Companies will preserve three affordable complexes for lower-income tenants for another 35 years, the Wall Street Journal reported, a victory for the city, which has been trying to prevent affordable units from turning market-rate.
The three complexes include the Terrific Tenements on West 47th and 48th streets and North Park at 20 West 102nd Street, both purchased by Related in the 1980s, and New Horizons at 200 West 111th Street, bought last year. The buildings account for 158 units in total.
Related’s contract with the city to keep the units affordable was expiring around this time, the Journal said.
“This was the juncture point, where Related or any private developer could make a decision to take them market,” said Marc Jahr, president of the Housing Development Corporation. “They could get a ton of money in rent if they go market with these projects.”
As an incentive for the developer to keep the buildings affordable, the Housing Development Corporation provided $71 million in tax-exempt loans. [WSJ]