August 26, 2011
Norris McLaughlin, P.A.
721 Route 202-206, Suite 200
P.O. Box 5933
Bridgewater, NJ 08807-5933
Contact: Edward C. Miller, Jr.
Chief Marketing Officer
(908) 722-0700 x4224
Norris McLaughlin, P.A.Closes Over $150 Million Financing Package for Mutual Redevelopment Houses
New York, NY (August 26, 2011) – In June, Norris McLaughlin, P.A. assisted its client, Mutual Redevelopment Houses, Inc. (“Mutual”), a 2,820-unit affordable cooperative housing development located in the Chelsea neighborhood of Manhattan, to complete a major financing package, totaling $151 million plus a capital grant from the City of New York. Drawing on extensive cooperative and financing experience, Burt Allen Solomon, assisted by Michael T. Reilly, both of the New York office, completed a complex series of loan and financing transactions originated and structured by Ezra N. Goodman, also of the New York office.
The financing was designed to refinance Mutual’s previous debt and provide it with about $100 million in funds for replacing Mutual’s HVAC system in each of its apartments (located in ten 22-story buildings), while keeping Mutual affordable for its low and moderate income residents. The financing, which had to be accomplished before the June 30th end of the City’s fiscal year, consisted of a Wells Fargo Bank, N.A. loan ($134 million) at market interest rates, plus a $17 million 30-year two-part loan from the City’s Housing Development Corporation. Coordinating with the numerous parties involved extensive negotiations and frequent conference calls among all concerned. In addition, to accomplish the closing, Mutual’s 1987 regulatory agreement with the City had to be amended, requiring negotiations with the City’s Department of Housing Preservation and Development and approval by the New York City Council, as well as a proposed statutory amendment. The amendment to the regulatory agreement was worked on by both Goodman and Solomon. To close the loans, a special “reasoned” legal opinion as to a New York mortgage recording tax exemption issue was required by Fannie Mae, which provided the funding for the Wells Fargo loan, backed by the AFL-CIO Housing Investment Trust. Peter D. Hutcheon, who recently relocated to the New York office, prepared that opinion. Goodman is in charge of preparing the engineering and construction contracts and bid packages for the HVAC project and related asbestos removal.
By way of merger with Szold & Brandwen, P.C., Norris McLaughlin, P.A. has a long and illustrious history working with housing corporations. Members of the Norris McLaughlin, P.A. Cooperative and Condominium Law Group and their forebears have worked on the establishment of middle income and Mitchell Lama government-assisted cooperative housing. They also helped to develop New York’s legislation for cooperatives constructed with government assistance for persons of moderate income. The Group has represented one of the major developers of this type of housing, dealing with all relevant government agencies in the planning stage and with contractors in the construction stage, and drafting documentation governing the relationships between the cooperatives and shareholders.
Today, Norris McLaughlin, P.A. represents cooperative and affordable housing corporations as both general and special counsel, as well as luxury cooperatives and condominiums, dealing with the Boards of Directors, officers, and managers. The firm brings to its cooperative & condominium practice expertise in real estate, financing, construction, corporate, general commercial, trusts and estates, and employment law drawn from the other practices of the firm.