HUD Approves Penn South Refinancing

HUD Approves Penn South Refinancing

Published: 
February 2017

The Penn South nonprofit co-op complex in Chelsea has won approval for a federal loan its officials say will “preserve affordability for a generation.”

The federal Office of Management and Budget approved the $190 million refinancing loan Jan. 17. It will save the 2,820-apartment complex about $3 million a year over its 35-year term, general manager Brendan Keany and board president Morris Benjamin wrote in a message to cooperators.

On Feb. 1, the City Council voted 47-0 to extend the co-op’s tax abatement another 22 years, until 2052.

Penn South, built in 1962 by the International Ladies Garment Workers Union, is a nonprofit co-op, which means residents own their apartments but can’t sell them for a profit. Vacant units go to people who’ve won the lottery to get on the waiting list. Maintenance for a two-bedroom apartment is about $900 a month.

“Here in the heart of one of the most expensive cities in the country, the people of Penn South have maintained affordability through smart planning and determination,” Councilmember Corey Johnson, who represents the neighborhood, wrote in Chelsea Now Feb. 1. “They have set an example for the rest of the country to follow as a place where middle-class New Yorkers can establish a home, raise a family, be part of their communities, and retire with dignity and comfort.”