Mount Vernon Housing Authority Mount Vernon, NY
The Ironburgh Organization has been designated by the Mount Vernon Housing Authority to assume ownership of the Levister Towers. Levister Towers consists of five high-rise building with a total of 499 apartments.
Using our privatization model, Ironburgh has pledged to work with the Mount Vernon Housing Authority and the Levister Towers Community Development Corporation to finance the rehabilitation of the Levister Towers using Low-Income Housing Tax Credits. We will raise $16 million in equity through the sale of municipal bonds issued by the Westchester County Industrial Development Agency. These bonds will be guaranteed by the State of New York Mortgage Agency (SONYMA) and will result in a tax-exempt interest rate of approximately 6.1% per year. We will sell the bonds through an underwriting issue by Paine Webber. The Authority will assume no responsibility to repay or guarantee the bonds.
We will combine the proceeds of the bond sale with $9 million in grants and mod-rehab funds already awarded to the Housing Authority. The resulting $25 million will enable us to raise an additional $7 million in LIHTC funds through a sale to a tax credit syndicator. These sources of equity will allow us to invest $17 million of hard construction costs into the complex. This work would include a new heating plant, electrical re-wiring of apartments, redesign of entry lobbies, new bathroom fixtures, new kitchen cabinets, and a new 15,000 square foot day care center/community room/laundry facility.