Schumer Announces, After His Push: OMB Signs Off on Penn South Refinancing Agreement; Federal Approval Means That Co-Op in Chelsea Will Continue to Provide Affordable Housing Options to Middle-class Families in NYC
Press Release
U.S. Senator Charles E. Schumer today announced that, after his push, the Office of Management and Budget (OMB) has signed off on a major refinancing agreement for Chelsea's Penn South Co-Op, which will help ensure the development remains affordable for an extended period. Earlier this month, Schumer called on OMB to swiftly review and make the decisions necessary to approve the development's efforts in refinancing its property. Prior to his push, Schumer explained that HUD, the lender, the City of New York and the Penn South co-op had negotiated an agreement to keep the property affordable and HUD had sent its terms of the agreement to OMB for approval. Schumer successfully pushed OMB to quickly review and approve the negotiations.
"Penn South tenants can breathe a sigh of relief today because the refinancing agreement to keep the development affordable has been approved by OMB and finalized by HUD. Chelsea's Penn South--one of the last remaining middle-class havens in New York City--will remain affordable for years to come," said Senator Schumer. "Overall, this agreement allows Penn South to reduce its current debt payments and lock in current interest rates, a win-win for Penn South residents and New York City. I'm pleased that OMB heeded my call to act quickly and I will continue to fight to make sure affordable housing remains a priority."
As part of the refinancing agreement, the current affordability provisions would remain in place for the full 35- year term of the HUD loan, and Penn South would be able to reduce its current debt payments and lock in current interest rates. The decades-old cooperative complex in Chelsea is one of the last remaining middle-class affordable oases left in New York City.
Penn South is a cooperative (co-op) development located between eight and ninth avenue, and 23rd and 29th streets, in the Chelsea neighborhood of New York City. The ten building development was built more than fifty years ago, in 1962, and includes 2,820 units of affordable housing.
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