The building at 1761 Morris Avenue, Bronx, NY was underwritten as a 40-unit $11M condominium building to support homeownership initiatives in the Bronx.  This project was financed by a Banco Popular $8 Million construction-to-permanent loan with subsidies from NYCHPD and the NYS Housing Partnership.  The project was developed for the Mount Hope Housing Co., Inc. who provided all guarantees.  

Construction was completed in 2010 but as a result of adverse lingering effect of the 2008 housing crisis, units were not sold and underwriting benchmarks not met.   Workout measures entailed working with all funding sources to stave off foreclosure, reducing guarantor’s exposure and securing additional equity (9% Low Income Housing Tax Credit) to convert the project into  rental housing.  With the added equity, the project was converted to low-income rental housing in December, 2012 and sold to a local nonprofit housing provider.  All funding sources associated the initial condominium underwriting were made whole the guarantor incurred no liability.