$25.7 Million for N.Y. Housing
Seven banks are providing $25.7 million in bridge financing for new multifamily housing in New York City.
The banks are lending the money at 8.75% over seven years to New York Equity Fund, an organization that channels corporate money into community revitalization projects. The money is to pay for building 1,155 units on gutted property owned by the city. The units will be rented to poor and moderate-income people.
A Multinational Group
Morgan Community Development Corp. is acting as lead bank and providing $4.7 million. Other participants are IBJ Schroder Bank and Trust Co., a unit of Industrial Bank of Japan, with $4.5 million; Canadian Imperial Bank of Commerce/New York, $4.25 million; National Westminster Bank USA, $4.25 million; Chase Manhattan Bank, $4 million; Bankers Trust Co., $2 million; and Citibank, $2 million.
"The New York Equity Fund offers an excellent chance for banks to help community groups rehabilitate their neighborhoods," said Mark Willis, president of Chase Community Development Corp.