Cost: $75,000,000
Completed: December 2005
Special Funding/Financing: HFA; Sec 236 De-Coupling
Type: Tenant-in-place Moderate Rehabilitation

In June 2002 The Arker Companies formed a joint venture with Related Capital Corporation to purchase, rehabilitate and preserve 816 units of affordable housing on three sites owned by the NYS Economic Development Corporation. Constructed in the early 1970s pursuant to the Section 236 Program, by 2002 the buildings were in dire need of substantial capital improvements and suffered from poor management and miscommunication with tenants, which resulted in a 205 vacancy rate.
The joint venture successfully attracted the use of a combination of private equity, institutional loans, Federal & State subsidies as sources of funds to provide the necessary capital improvements through a moderate rehabilitation project with tenants in place.

Capital improvements included masonry restoration, new roofs, new kitchens and baths, new windows, hallway restoration, new plumbing and heating, site plan design and improved security.

Originally a Mitchell-Lama which could have been converted to market rate housing, the development team converted and preserved all 816 units as affordable housing for up to 50 years.