The U.S. Department of Housing and Urban Development (HUD) has announced a $621 million deal to refinance a previous mortgage at Co-op City, a large cooperative housing community that is home to more than 57,000 residents in the Bronx, New York. As announced by HUD Secretary Shaun Donovan, HUD and Wells Fargo Bank N.A. closed on the loan that will preserve long-term affordable housing for these families and significantly lower annual interest payments for the building’s owner over the next 35 years. The new mortgage is backed by the Federal Housing Administration’s (FHA) General Insurance and Special Risk Insurance (GI/SRI) Fund. Nixon Peabody LLP provided legal counsel to Wells Fargo Bank N.A.
“This was a unique and unprecedented situation, since it involved multiple parties including the city, state, and private institutions and is also one of the largest FHA loans ever made,” said Monica Sussman, a Nixon Peabody affordable housing partner who co-led the Wells Fargo legal team. “We are pleased to have been able to work with Wells Fargo to close this loan and provide affordable housing units for thousands of New Yorkers,” added co-lead Patrice Harris Talbott, a Nixon Peabody affordable housing partner.
The Nixon Peabody team also included Meghan Fennelly Altidor, Nate Cushman, John Kelly, and Jean McCreary.
