Against many odds the two buildings that comprise the Tremont Anthony HDFC were transformed from foreclosed, dilapidated, lead contaminated eyesores to 31 units of rehabilitated, financially stabilized, permanently affordable housing for the low income residents that live there. University Neighborhood Housing Program's commitment to the project which was in development for over 4 years was based on the commitment of the tenants who approached UNHP for help in 1994. UNHP believes that given the cuts to housing programs, and scarce public subsidy for housing this project which pieces together a variety of programs and innovative financing can serve as a model of the transfer of occupied privately owned housing to community affordable ownership.

There were many obstacles through the predevelopment process of the project that had to be overcome. Once the tenants decided to work towards community ownership and purchase the building from Freddie Mac, UNHP began work to put together a financial package that would address the serious disrepair and keep the building affordable to the current low income residents. UNHP approached the City of New York and the Chase CDC to use the City Participation Loan Program for the bulk of purchase and renovation funds. An initial scope of work and a list of lengthy lead paint violations indicated that the existing lead poisoning risks would have to be eliminated. UNHP entered into long and difficult negotiations with the City. The City did not want to include 100% lamination in the scope of work due to the expense. The tenants and UNHP felt that it was necessary in order to eliminate the risks of lead poisoning that would dramatically increase once construction was underway. The City finally agreed to the lead elimination, but it still left the unresolved problem of affording the level of work needed to repair the building. The tenants agreed to wait for cosmetic construction items in order to take care of the most serious repair issues. Because the tenants were all low income families, the NYS Weatherization project run by the Northwest Bronx Community and Clergy Coalition was used to replace the roof and the building qualified for NYC Home funds.

The elimination of Section 8 rent subsidy for new housing projects was also an obstacle in the development of this project. Section 8 subsidy was typically used in past affordable housing projects; rents would be raised to cover the purchase and rehabilitation and the subsidy protected the tenant. Another major obstacle was the purchase price from Freddie Mac. This project was being developed through Freddie Mac's community ownership initiative, and while Freddie Mac was willing to accept less than the $700,000+ market price, they were not willing to accept a price below the face of the mortgage held on the property.

After almost a full year of negotiation and support from local community groups and Senator Al D'Amato, Freddie Mac agreed to subordinate a portion of its debt. Chase Manhattan Bank's philanthropic side also agreed to provide a low interest loan to the project in addition to its financing to support the purchase price. Chase agreed to accept the low interest loan provided by the Sisters of Charity for the equity in the project. The commercial rents were instrumental to the project in that they provided the extra income stream necessary to subsidize the loss of section 8 subsidy to the project. Both Freddie Mac and the Chase Philanthropic Loan were to be paid back out of the Low Income tax Credit, if the project received a designation. UNHP applied for the credit in 1997 and did not get a designation. UNHP applied again in 1998 and received a tax credit designation. The tax credit will enable the project to repay its debt and undertake some of the work that could not be afforded in the original scope of work.

The Tremont Anthony Project can serve as a model of affordable housing development as it highlights the power of community commitment, new levels of private, public and not for profit partnership, the innovative ways that the private market can step in to augment decreasing public funds for affordable housing, a model for creating new affordable housing in an environment where that is becoming increasing difficult, a new model for ownership that partners tenants with experienced community groups and an alternative for financial troubled properties that will yield affordable decent housing for our neighborhoods.

The Tremont Anthony HDFC received its 8609 tax credit allocation from the State of New York and converted its construction loan to permanent financing with the Housing Development Corporation (HDC) in 2001. Our work with these two buildings has been nationally recognized by the Maxwell Awards of Excellence for the Production of Low Income Housing and the 1999 Social Compact Awards.

The Tremont Anthony buildings are two of the 50 buildings that are part of University Neighborhood's Community Ownership Project.

Click here for photos of the Tremont Anthony Project.