Part of the Fabric of Affordable Housing With Our Financing of the Harlem Tapestry Apartments
| Name: | Tapestry Development |  |
| Location: | New York City | |
| Loan/Deal Type: | Freddie Mac Bond Credit Enhancement – 4% LIHTC | |
| Number of Units: | 185 units | |
| Loan Amount: | $40 million |
Freddie Mac provided through Wachovia $40 million in financing for its borrower, the Jonathan Rose Companies, toward the development of the Tapestry, a 12-story, 185-unit apartment building currently under construction at East 124th Street and Second Avenue at the foot of the Triborough Bridge in East Harlem, New York City. Tax-exempt bonds were also provided by the NYC Housing Development Corp. through its 50/30/20 Mixed-Income Program, wherein 50 percent of the units will be market rents, 30 percent will be middle income, and 20 percent will be low income.
The complex is also noteworthy because it will be the first ever affordable and mixed-income residential rental development designed to Leadership in Energy and Environmental Design (LEED) Silver certification standards in Harlem. The LEED Green Building Rating SystemTM is a third-party certification program and the nationally accepted benchmark for the design, construction and operation of high-performance green buildings.
"Freddie Mac showed its commitment to New York City and to affordable housing by coming to the table with a well-priced, long-term credit enhancement in a tough economic environment."
Matthew Wiener
Wachovia director
"Freddie Mac showed its commitment to New York City and to affordable housing by coming to the table with a well-priced, long-term credit enhancement in a tough economic environment," said Matthew Wiener, Wachovia director. "The project will be a great addition to housing in Harlem, and we are all pleased to have been able to make it happen with Freddie Mac."
The Freddie Mac Bond Credit Enhancement 4 Percent LIHTC with swap/funded forward further offered the borrower many benefits. The forward products benefits include financing for the new construction, substantial rehabilitation and moderate rehabilitation of affordable Low-Income Housing Tax Credit multifamily properties that are funded entirely or in part by the sale of fixed- or variable-rate tax-exempt bonds. The swap credit enhanced by Freddie Mac provided a synthetic fixed rate at the lowest rate obtainable. The closing occurred during one of the most turbulent financial periods in recent memory. The forward product is designed to provide the best financing solution for customers doing their part to preserve or construct affordable housing across the nation.
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