Tuesday, April 30, 2013

9 million+ to Greenburgh for affordable housing!...at WESTHELP

Mark: Thank you for participating in the bid process for the WESTHELP property. We selected another company (they offered the town much more revenue) but appreciate your taking the time to meet with us. And, we also appreciate the work you put into the proposal.

I hope to continue to work with you on your current Greenburgh projects and hope you will consider managing other properties in Greenburgh when opportunities arise.

Thanks again.


The Greenburgh Town Board unanimously selected MRH to lease the former WESTHELP property from the town. 108 affordable housing units will be rented.The town has rights to the property for 18+ years. MRH will give the town 9 million dollars over the 18+ years that the property is under town control. MRH has asked the Richman Group affordable housing corporation to provide property management and tenant compliance oversight for the affordable housing units at 1 West Help Drive. The Richman group is one of the nation’s leading investors in affordable housing with a portfolio which spans 49 states, Puerto Rico, US Virgin Islands and Guam. They provide affordable housing for 115,000 families.

MRH plans to target seniors and people 55+so they will not affect the local school system. Estimated rent: $1,134/mo/unit MRH has offered the town 3 payment options. I prefer option two which is listed below. MRH will also pay any tax increases on the property if the assessor determines that the property is taxable.

1 West Help Property Rent Payment Options

OPTION 1: $1,500,000 paid up front , $0 rent in year 2 and 3, $500,000 rent year 4-18.

OPTION 2: $1,500,000 paid up front , $441, 176.47 paid year 2 thru 18.

OPTION 3: $3.5M Lump Sum payment up front

This is a good deal for the town. The town will be able to put the property to a good use –affordable housing. The revenue we will receive far exceeds what we had expected from other affordable housing developers who had expressed interest in the proposal. Next step: finalizing the terms of the lease. MRH will be spending about 2 million on renovating the apartments . They hope that the units will be ready for occupancy later this year!