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Our Target in Action: Refinancing Affordable Housing Units in New York
In June 2021, JPMorgan Chase, through the Corporate & Investment Bank, provided $600 million of financing to A&E Real Estate to facilitate the refinancing and preservation of a portfolio of 53 rent-regulated residential buildings comprising 3,531 rental units located in high-cost areas throughout the Manhattan, Brooklyn, Queens and Bronx boroughs of New York City.
The largest single property in the portfolio is the 1,229-unit Riverton Square complex in East Harlem. Originally constructed in the 1940s, the development provided an alternative to the many housing projects that discriminated against non-White residents that were built in the same period. As such, it provided housing opportunities to predominantly Black families and represents the storied history of the Black community in New York. Riverton Square is subject to a regulatory agreement to maintain 975 affordable units (79% of the property), which ensures long term affordability at the complex. The agreement establishes that as leases expire on the units, they remain affordable to various income brackets (60%, 80% and 125% of area median income). As of October 2021, 96.5% of the property was classified as affordable.