Affordable housing gets $10.6m injection of relief.

CharterMac, one of the nation's leading full-service multi-family finance companies, announced that its subsidiary, Related Capital Company, will provide approximately $10.6 million in equity financing to a development team comprised of Related Apartment Preservation, LLC and DB Development, Ltd., for the renovation of a 600-unit mixed-use apartment complex, Ocean Park Apartments, in Far Rockaway, Queens.

The rehabilitation project comes on the heels of Governor Pataki's recent announcement of initiatives for affordable housing programs in New York City that will leverage private equity by partnering it with local government and other funding sources.

The Ocean Park complex in particular highlights how critical preservation is to any affordable housing initiative. The complex, originally developed in 1972, is part of the Mitchell-Lama Housing Program.

The program encompasses hundreds of affordable housing properties, many of which are now converting to market rate communities, leaving a void in affordable housing in New York City.

Related Capital and Related Apartment Preservation are ensuring that the affordability of Ocean Park Apartments will continue by renovating the existing complex and maintaining affordable unit rents.

"Preservation is a key to maintaining affordable housing in New York City," said Eric Trucksess, executive vice president of Related Capital Company. "New York City has seen little new affordable housing in decades, and Far Rockaway is no exception, with strong demand for quality, affordable apartments."

Related Capital invested $10.6 million in equity in exchange for tax credits generated by the complex.

The 600 renovated units at Ocean Park Apartments, which is currently 94% occupied, will provide relief to nearly 60% of area residents who are renters, giving them housing that is far superior to existing affordable units. Residents will also benefit from excellent amenities at Ocean Park Apartments and an overall convenient location just steps away from the Atlantic Ocean.

The ocean side complex is located on the Rockaway peninsula, 15 miles east of downtown Manhattan. Residents enjoy easy access to retail shopping and JFK International airport.

Ocean Park Apartments consists of two 26-story buildings, containing one- to three-bedroom residences ranging in size from 760 s/f to over 1,100 s/f, larger than average market-rate properties in the area. Rents are expected to start as low as $660 per month, as much as $370 below other income-restricted rental complexes in the area. The property also includes 12,000 s/f of retail space. The majority of the residential units at Ocean Park will be set aside for residents earning 60% or less of the area median income, with the remainder of the units set at rents regulated by HUD's Section 236 program for tenants earning 80% or less of the area median income. Renovations are not expected to displace any tenants and are expected to be complete by the end of 2005.

Unit amenities at Ocean Park Apartments will include a frost-free refrigerator, dishwasher, oven/range, in-wall air conditioning sleeve, mini-blinds and balcony. Common area amenities include a community room with kitchen facilities, playground and swimming pool, on-site management office, central laundry facility in each building, on-site garage and lot parking, and on-site retail options that include a grocery store, pharmacy, restaurant, bank and medical clinic. The complex also has access to the ocean via a beach-front boardwalk.