Blank Rome Represents Merchants Capital Corp. in $375 Million Bond Financing
A Blank Rome team represented Merchants Capital Corp., loan servicer for Freddie Mac, in connection with a New York City Housing Development Corporation (“HDC”)/Freddie Mac Risk Share bond financing totaling $375 million.
As part of the New York City Housing Authority’s (“NYCHA”) Permanent Affordability Commitment Together (“PACT”) initiative, the Arker Companies, in partnership with Omni New York, acquired a leasehold interest in a nine-property, NYCHA-owned, scattered site housing project comprising 2,625 units located throughout Brooklyn, New York. The PACT initiative identifies resources and opportunities to make major physical improvements to its housing developments while preserving permanent affordability and maintaining strong resident rights and includes portfolios that qualify for conversion under the federal Rental Assistance Demonstration Program.
The financing constitutes one of the largest 100-percent affordable Freddie Mac loans to date and is HDC’s first-ever Housing Impact Bonds transaction.