IPNTA
Newsletters
March 2003
Bank Group Open to IPNTA on Alternative to Buyout
A coalition of banks established to promote affordable home ownership
has expressed serious interest in IPNTA’s efforts to purchase our
buildings under a program that would enable us to keep our apartments
either as cooperators or renters or both.
The president of the Community Preservation Corporation (CPC), a non-profit
mortgage lender comprised of 94 banks and insurance companies, met twice
with IPNTA officers, including President Neil Fabricant, over the past
few months to discuss financing, purchase and rental prices, and related
issues.
While the CPC has made no final commitment, the fact that it considers
IPNTA’s strategy worthy of serious consideration is noteworthy.
CPC’s presence adds an equal, if not superior, degree of financing
for us against Laurence Gluck, a would-be private owner, and Harold Cohn,
the current owner.
Gluck, who is under contract to purchase IPN from Cohn, has publicly
announced his intention to remove the complex from the Mitchell-Lama program,
and charge market rents.
In other Mitchell-Lama projects whose landlords are seeking to exit
the program, such as Phipps Plaza on Manhattan’s east side, the
new proposed rents range from $1,825 for a studio, to $3,150 for a 2-bedroom
with terrace. Much higher rents apply to 3-bedroom apartments.
Formed in 1974, CPC states that it specializes in “financing low-,
moderate- and middle-income housing throughout New York and New Jersey.”
So far it has financed more than 92,000 affordable housing units. The
organization says its mission is “to stabilize, strengthen, and
sustain low- and mixed-income communities.”
That is exactly the aim of IPNTA.
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