Project Description
1018 East 163rd Street (the Project) consists of the residential portion of one building in Bronx Community District 2 of Bronx, New York with 100% of its low-income units assisted by a project-based Section 8 contract. Currently owned by 1018 Development Company (the Current Owner), a redevelopment company organized under Article V of Private Housing Finance Law, the Project address is 1018 East 163rd Street, Bronx, New York (Block 2723, Lot 40). 1018 East 163rd Street LLC (as Beneficial Owner) and 1018 East 163rd Street Housing Development Fund Corporation (as Fee Owner, and together with Beneficial Owner, the Purchaser) proposed to acquire the Project from the Current Owner using a conventional loan from Signature Bank for $14.25 million and equity contributed by the principals of the Beneficial Owner in the amount of $6.2 million. In connection with the acquisition, the Purchaser is requesting HPD provide a new forty (40) year Article XI exemption at closing to maintain financial viability and make physical improvements as necessary as the existing Article V exemption has expired as of February 28, 2019. Support from Council Member Rafael Salamanca Jr. of the 17th District of Bronx has been requested. All units except the superintendents unit are currently covered under a project-based HAP contract under the Mark-to-Market program. The Project is subject to a HUD Use Agreement which restricts the rent increases to OCAF-only until 2036. The HAP contract will be assigned to the Purchaser at closing. The project rents are outlined below. Due to the rent restriction in the HUD Use Agreement, there is no proposed rent increase as part of the closing. The average contract rent is $1,828 (66% AMI). The 1018 East 163rd Street property is the residential portion of a 6-story building, approximately 157,000 SF in size and located in the Longwood neighborhood in Bronx Community District 2. The Current Owner acquired the Property in 1977 and operated it in accordance with Article V of Private Housing Finance Law. There has not been any other owner since the 1977 acquisition of the Project. The residential portion of the building contains thirty (30) one-bedrooms, twenty-seven (27) two-bedrooms, twenty-nine (29) three-bedrooms, ten (10) four-bedrooms, and one (1) three-bedroom unit as the supers unit for a total of 97 units. According the IPNA, the building is in overall fair to good condition. The projects most recent REAC score, from 2018, is 75. There are DEP arrears in the amount of $4,670. There are no DOF arrears. The building has commercial space on the ground floor which will be a separate tax lot following condominium formation and owned by a separate entity.
