MOUNTCO ANNOUNCES PRESERVATION OF AFFORDABLE HOUSING UNITS FOR ORANGE COUNTY SENIORS THROUGH 2045

Construction and Development Company receives community service award from Senator William L. Larkin

Newburgh, N.Y. (October 1, 2015) – Mountco Construction and Development Corp. (Mountco) today celebrated the fourth anniversary of taking ownership of Burton Towers with the receipt of a  Community Service award from State Senator William L. Larkin.

Built over 30 years ago, Burton Towers is a 131 unit affordable housing development for senior citizens.  It had fallen into such serious disrepair and financial distress that in 2011, the U.S. Department of Housing and Urban Development (HUD) foreclosed on its mortgage.  HUD sold the property to the City of Newburgh which had used a Request for Proposal process to select Mountco as its development partner.  The City took title from HUD and immediately sold Burton Towers to Mountco on September 30, 2011.

The project was financed through tax-exempt bonds issued by the Newburgh Housing Authority and an allocation of Federal low-income Tax Credits from the New York State Housing Finance Agency. Mountco’s funding partners in the project are Citi, which purchased the bonds, and Raymond James Tax Credit Funds, Inc., which purchased the tax credits.  Mountco invested over $7.5 million in hard construction costs to renovate the property.

“Burton Towers marks the 12th time that Mountco has been able to acquire and preserve an affordable housing development. We are especially proud of the fact that we have been able to take such a distressed property and turn it into a great place to live for seniors,” said Joel Mounty, President of Mountco. “We would particularly like to thank our management company, Community Housing Management Corp., as well as our financial partners, the Newburgh Housing Authority, Citibank, which has funded six of our projects, and Raymond James Tax Credit Investments, Inc. which has been our partner on six affordable housing developments, for supporting our efforts at Burton Towers. Finally, we would like to thank the Federal Home Loan Bank and Orange County for providing the ‘gap’ financing.”

State Senator William L. Larkin, a long-time advocate for senior citizens presented Mountco with a Community Service award for its work at Burton Towers.  Senator Larkin said, “Mountco truly has performed a valuable community service for our State, the City of Newburgh, and most importantly, the residents of Burton Towers. When Mountco purchased Burton Towers from the City it was an unsafe and unpleasant place to live. Mountco has completely renovated the building and, supported an active Tenant Association.  Burton Towers is now able to pay its taxes and other bills.  It has been a complete turn-around.”

“The City of Newburgh had four developers respond to our RFQ.  We selected Mountco, and as we stand here today in this wonderfully renovated building with these happy tenants, it is clear we made the right choice,” said Newburgh Mayor Judy Kennedy. “The City is very pleased that it was able to help our seniors by providing a PILOT Agreement which assisted in the new refinancing.”

“Citi is particularly pleased to have provided the financing for the Burton Towers project. There was a lot of work necessary to improve the building and it has turned out beautifully,” remarked Richard Gerwitz, Co-head of Citi Community Capital. “We have financed several of Mountco’s projects in the past and it is no surprise that the building turned out as well as it did with Mountco leading the way.”

“The Federal Home Loan Bank of New York congratulates Mountco for this well-deserved Community Service award,” said José R. González, president and CEO of the Bank. “Three years ago, we were honored to partner with our member, Citibank, to provide grant funding to help Mountco renovate Burton Towers, and today we are proud that Burton Towers provides safe, decent and affordable housing for Orange County’s seniors. Truly, Mountco is serving its community well.”

The project created 75 construction jobs and significant construction contracting opportunities for minority and women owned businesses. Additionally, the project generated $200,000 in municipal impact and other fees to the City, and will generate a $30,000 annual increase in PILOT payments.

The New York State Housing Finance Agency provided an allocation of 4% tax credits for the project.

“We truly appreciate the work that Mountco has done to make our apartments and our building a safe and comfortable place to live, and the fact that Mountco has worked so cooperatively with our Tenant’s Association,” said Tenant Association Director Leslie Patterson.

MOUNTCO ANNOUNCES PRESERVATION OF AFFORDABLE HOUSING UNITS FOR WESTCHESTER SENIORS THROUGH 2045

Local construction and development company awards $1 million to local affordable housing nonprofit through permanent bond conversion

RYE, N.Y. (July 23, 2015) – Mountco Construction and Development Corp. (Mountco) today announced a major milestone in its Rye Manor project, ensuring the preservation of 100 affordable housing units for Rye seniors through 2045. Mountco also announced a $1 million payment to the RyeInterfaith Housing Corporation. This is in addition to $1 million that Mountco has already paid to Rye Interfaith to fund operating costs and provide seed money for local affordable housing developments.

Built 25 years ago, Rye Manor required extensive renovation in order to be maintained as an affordable housing resource. Mountco partnered with RyeManor HDFC, the original owner of the development and negotiated a financing package that allowed the company to pay off the existing HUD mortgage and provide the necessary repairs and improvements without passing down costs to tenants.

The project was financed through tax-exempt bonds issued by the Westchester County Industrial Development Agency and an allocation of Federal low-Income Tax Credits from the New York State Housing Finance Agency. Mountco’s funding partners in the project are Citibank, which purchased the bonds and First Sterling, which purchased the tax credits.

“Rye Manor marks Mountco’s 12th affordable housing preservation project in collaboration with a local nonprofit, and we’re particularly proud that each of those projects generated significant funding for nonprofit and municipal partners – all without raising rents a penny, ” said Mountco President and Founder Joel Mounty. “Thanks to our management company, Community Housing Management Corp., and our financial partners: the Westchester Industrial Development Agency; Citi Bank, which has funded six of our projects; and First Sterling, which has partnered with us on six affordable housing developments.”

“When this affordable development was built in 1987, the government was there to make it happen,” said NYS Homes and Community Renewal Commissioner/CEO James S. Rubin. “Our role in 2015 is to help preserve this essential asset – 100 apartments that have been safe, secure and affordable homes for so many seniors. Thanks to our shared commitment and hard work, we’ve protected this affordable housing as an irreplaceable resource in the heart of a vibrant and beautiful community. The people who live here now can be assured that this will remain their home for years to come.”

“Westchester County is proud to have provided Rye Manor with the financial support to rehabilitate 100 affordable housing unites. By taking advantage of the resources that Westchester County IDA offers, the Rye Manor redevelopment project will provide health and safe affordable senior housing for years to come,” said Westchester County Executive Robert P. Astorino.

The project created 75 construction jobs and significant construction contracting opportunities for minority and women owned businesses. Additionally, the project generated $200,000 in municipal impact and other fees to the city, and will generate a $70,000 annual increase in PILOT payments.

“The Rye Manor Development has been a very positive addition to our community since it was constructed over 28 years ago. The city is very pleased that it was able to help our seniors by providing a pilot agreement which assisted in the new refinancing,” said Rye Mayor Joseph A. Sack.

“When the Rye Manor Board, Mountco and Community Housing Management explained their redevelopment plans to the tenants in 2013, we agreed to support their plan. We are very happy that we did because the project turned out great,” said Josephine Delmonte of the Rye Manor Tenant Association. “Rye Manor has been a lovely place to make our home, and now we know that it will continue to be a safe and attractive place to live for many years to come.”

“Our Board wanted to make sure that we could preserve Rye Manor as an affordable housing development and completely renovate the property in a way that generated additional funds for the City without costing the tenants more money,” said Bruce Macleod, President of Rye Interfaith Housing Corporation. “We were able to do that and the fact that our corporation is receiving a fee for our work is just a bonus. We had the opportunity to work with other development groups, but the way things turned out we are very pleased we selected Mountco as our partner.”

The 74,000 square foot development remained fully occupied by residents throughout the renovations, which included: exterior masonry repair and new windows, glazing new roofing, new kitchen cabinets and appliances and baths, new flooring and paint, upgrades to the heating system, elevators, and new light fixtures, outlets and electric panels.