The first phase of the effort will consist of two connecteddoorman, elevator buildings, one of which has eight floors, theother seven. Space in the sites will be allocated for grade levelretail and a private indoor parking garage. In a separatetransaction, Phase II will eventually provide for 14 two-familytownhouses that are expected to be constructed next to theapartments.

The loan will take the form of a tax-exempt bond offeringthrough the sponsorship of the New York City Housing DevelopmentCorp., where 20% of the total available rental units will bereserved for low-income. The HDC also combines the use of creditenhanced variable rate, tax-exempt bonds; with subsidies providedthrough its New Housing Opportunities Program in the form of asecond mortgage. This subordinated debt will provide for anadditional 30% of the total units to be set-aside as low-incomehousing. In the end, approximately 50% of the total units plan tobe rented at prevailing market rates. APF has a current loanservicing portfolio in excess of $6 billion.

Each phase is being developed by IBEC Building Corp. and theStrategic Development Group. Both were initiated through an RFPissued by the Empire State Development Corp; and are beingdeveloped under the auspices of the NYC Department of HousingPreservation and Development.