For Immediate Release
Contact: bowman.press@mail.house.gov
NEWS: Rep. Jamaal Bowman, Sen. Chuck Schumer Urge Sec. Fudge to Approve Co-Op City Refinance Application
New York – Congressman Jamaal Bowman, Ed.D. (NY-16) and Senator Chuck Schumer (D-NY) sent a letterurging U.S. Department of Housing and Urban Development (HUD) Secretary Marcia Fudge to evaluate and review the Co-op City refinance application that would free up approximately $120 million for capital repairs.
“As we mentioned in our prior letter, Co-op City is the largest limited-equity cooperative housing development in the nation and provides an oasis of housing stability to its 44,000 residents in an increasingly expensive region,” wrote Congressman Bowman and Senator Schumer. “Co-op City successfully refinanced their loan in 2012, insured through the Federal Housing Administration’s 223(f) multifamily program, allowing them to improve housing conditions for residents. At current interest rates, Riverbay estimates this refinance process could yield $120,000,000 for much-needed infrastructure repairs. Without the opportunity to refinance at the current interest rate levels, however, the cooperators are concerned that these necessary repair costs will be passed onto residents, increasing the cost of living in this community and placing financial strain during an already difficult time.”
“On behalf of our Co-op City constituents, we request that you provide a thoughtful and expedited evaluation of this refinance application,” continued Congressman Bowman and Senator Schumer. “We look forward to continuing to work collaboratively to efficiently complete this much-needed refinance process.”
To read the full text of the letter, click here.
“We are asking HUD to complete their review of Co-op City’s refinancing quickly,” said Bernard Cylich, Riverbay President. “We need to close the deal before rising interest rates make it unaffordable. We also want to thank Senator Schumer and Congressman Bowman for their continued support and advocacy for the largest, most diverse affordable housing community in the Country. Co-op City’s excellent credit record and perfect payment history should make this a no brainer for HUD approval. Particularly since it is at no cost to the taxpayer.”
On April 8th, 2021, Congressman Bowman and Senator Schumer wrote a letter to HUD Secretary Fudge in support of Co-op City’s plan to submit a loan refinance application. The two members held a press conference at Co-op City to highlight the importance and urgency of this opportunity to unlock $100 million in much-needed funds for capital repairs.
On June 30th, 2021, the Office of Congressman Bowman and Senator Schumer jointly met with representatives from HUD to discuss the issue at hand.
Congressman Bowman was pleased that on September 30, 2021, HUD replied to his initial correspondence expressing a commitment to working together on the refinance process.
Congressman Bowman and his office have remained in close communication with Riverbay Corp on their application status. On January 25, 2022, the Office of Congressman Bowman met with the lawyer representing Riverbay Corp to discuss project developments.
Congressman Bowman intends to continue advocating for the swift approval of Co-op City’s loan application through direct communications with HUD leadership in the coming days.
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