Country’s Oldest Limited Equity Co-op Secures
New Loan; Plans Major Capital Improvement Projects for 1,500 Unit Property
New York, NY (July 22, 2013) -- National Cooperative Bank (NCB), a leading financial services company dedicated to providing banking products to cooperatives nationwide, just completed a $30 million loan for Amalgamated Houses in the Bronx, New York. The country’s oldest limited equity cooperative in the country, secured the financing to refinance approximately $8.5 million of existing debt and $19.6 million to bolster its reserves and undertake substantial capital improvements to the property. NCB worked with Fannie Mae in securing the transaction. Edward Howe III, Managing Director of NCB’s New York office, arranged the financing.
“Amalgamated Houses is a shining example of how the cooperative structure can work, and thrive for many generations, and provide an excellent affordable housing option in New York City,” said Mr. Howe. “We are thrilled to be a vital part of this co-op’s future success, and know this financing will play an important role in improving the financial and physical health of the co-op for current residents and those who will live there down the road.”
Founded in 1927, Amalgamated Houses provides a beautiful and strong community for 1,500 moderate-income families. The new financing will enable the community to refinance $8.5 million of existing debt at a lower interest rate. It will utilize the $19.6 million to undertake a number of substantial exterior renovations projects over the next ten years, as well as place some of the funds to strengthen its reserves for any unplanned needs.
“I believe that NCB’s $30 Million financing for Amalgamated Housing Corporation is another important milestone in the long and illustrious history of this cooperative,” said the property’s General Manager Charles M. Zsebedics. “This loan signifies and solidifies the true responsibility and commitment that this Board of Directors has made to its cooperators in addressing the necessary repair and maintenance of major interior and exterior building systems. These improvements will help ensure that current and future generations of Amalgamated families can continue to live here in a safe and stable environment, as well as enjoy the strong and vibrant community that it continues to be.”
Amalgamated Houses was originally sponsored by the Amalgamated Clothing Workers Union under the leadership of Sidney Hillman, and was the first to be created by Founding President and Manager Abraham E. Kazan, known as "The father of cooperative housing in the United States.” It continues to be an example of how limited equity cooperatives can flourish in this country, and serves as a model for all moderate income cooperative housing that has followed. The United Housing Foundation, which built tens of thousands of homes for this community, was also created by leaders from the Amalgamated. The cooperative communities created by UHF drew on the experience of the Amalgamated houses.
Similar to the mission of Amalgamated, NCB is also continuing its commitment to being a socially responsible financial institution and its dedication to meeting the needs of the communities it serves. In 2012 alone, the Bank deployed $232 million to initiatives serving low and moderate income communities, a number they hope to increase in the coming year. As part of its support for last year’s United Nations declaration the International Year of the Cooperative, NCB is continuing its efforts to develop concepts that build cooperative awareness in many different fields of business.
NCB is dedicated to strengthening communities nationwide through the delivery of banking and financial services, complemented by a special focus on cooperative expansion and economic development. Headquartered in Washington, DC, the Bank has offices in Alaska, California, New York, Ohio and Virginia. To learn more, visit www.ncb.coop, National Cooperative Bank on Facebook, or on Twitter @coopbanking.
The NCB Financial Group consists of the Congressionally-chartered National Consumer Cooperative Bank (NCCB) and NCB, FSB, a federally insured savings bank wholly owned by NCCB. The NCB Financial Group provides financial products and services for the nation’s cooperatives, their members, and socially responsible organizations.