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BROOKLYN, NY-Construction and development financing in the amount of $35.2 million has been earmarked for a two-phase housing development in the Boerum Hill section of this borough. Executing a Freddie Mac Forward Commitment, American Property Financing arranged the package for the mixed-income affordable apartment rental property to be known as State Renaissance Court. The apartment project will be erected atop the Hoyt-Schermerhorn subway station which was actually designed to support new building construction.

The first phase of the effort will consist of two connected doorman, elevator buildings, one of which has eight floors, the other seven. Space in the sites will be allocated for grade level retail and a private indoor parking garage. In a separate transaction, Phase II will eventually provide for 14 two-family townhouses that are expected to be constructed next to the apartments.

The loan will take the form of a tax-exempt bond offering through the sponsorship of the New York City Housing Development Corp., where 20% of the total available rental units will be reserved for low-income. The HDC also combines the use of credit enhanced variable rate, tax-exempt bonds; with subsidies provided through its New Housing Opportunities Program in the form of a second mortgage. This subordinated debt will provide for an additional 30% of the total units to be set-aside as low-income housing. In the end, approximately 50% of the total units plan to be rented at prevailing market rates. APF has a current loan servicing portfolio in excess of $6 billion.

Each phase is being developed by IBEC Building Corp. and the Strategic Development Group. Both were initiated through an RFP issued by the Empire State Development Corp; and are being developed under the auspices of the NYC Department of Housing Preservation and Development.

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