Sterling National Bank, the principal subsidiary of Sterling Bancorp, announced that it has provided a credit facility totaling $25.2 million to Newburgh CORe Neighborhood Revitalization, an affordable housing initiative in Newburgh, NY. The credit facility includes an $11.2 million construction loan and a direct equity acquisition of the Low Income Housing Tax Credits, Federal Historic Tax Credits and NYS Historic Tax Credits for $14 million. The deal closed on February 28, 2017.
Newburgh CORe Neighborhood Revitalization is historic rehabilitation and renovation of 45 mixed-income affordable rental apartments clustered across 15 buildings within a four-block area, a qualified low-income census tract in the City of Newburgh. The project will provide permanent affordable housing for homeless individuals, middle-income families, artists, veterans and seniors with modest means. Twelve of the units will be designated with preference to households involved in artistic and literary endeavors.
"We are committed to reinvesting in our local communities, and proud to provide financing for this important project in Newburgh, which will play an important role in revitalizing a neighborhood in need," said Vincent Maine, Senior Managing Director of Community Development at Sterling.
"We are thrilled to be involved in the Newburgh CORe Neighborhood Revitalization," added K. James Dittbrenner, Managing Director of Community Development at Sterling. "Community Revitalization through innovative projects such as this are making it possible for residents to get access to quality affordable housing and helping pave the way for a brighter future."
The Newburgh rental units will be located on the north side of Broadway, between First Street and Broadway, bounded by Lander and DuBois Streets. The cluster community rehab project will be anchored by an abandoned dress factory building which will be rehabilitated to serve as a multi-use Community Center with after school youth programs, studio/gallery space for artists, computer training lab. One component of the CORe initiative is a partnership with the City of Newburgh Police Department to lease space in the Community Center to provide supportive "Community Policing".
"Sterling has been a great partner in helping get this project off the ground, and has worked alongside us to understand the distinct financial needs of this initiative," said Kevin O'Connor, Chief Executive Officer at RUPCO, Inc., the developer. "We are excited to bring change to the community through this project, making not only affordable housing, but also youth programs, computer facilities, arts and literature, available to its residents."