Sen. Chuck Schumer is pushing Secretary of Housing and Urban Development Marcia Fudge to approve a mortgage refinancing for Co-Op City to unlock $120 million in badly needed funds for the sprawling Bronx complex.
With interest rates rising, Schumer, D-N.Y. and the Senate Majority Leader, called Fudge to ask her to fast-track the refinancing that would allow the complex to implement capital improvements, including upgrading the HVAC systems, facade maintenance, and electrical system upgrades.
"New York's co-ops are fundamental to the vitality of this city but have faced unique challenges throughout the coronavirus crisis and need more help," Schumer said.
Bob Klehammer, the general manager of the massive housing development, said the cash infusion could also be used to upgrade the pump rooms that deliver heat and water to residents as well as extensive necessary electrical work.
The massive refi would also reduce the complex's monthly mortgage payment, maintaining Co-Op City's status as an "island of affordability" amid fast-rising housing costs in New York.
Schumer says he is pressuring Fudge to act quickly to facilitate the refinancing deal, which needs federal approval.
"The deal would improve the lives of those who live there and provide affordable housing for generations to come," Schumer said.
Some 45,000 people live in the 320-acre Co-Op City development, built more than 50 years ago as a middle-class enclave.
"We are trying to take advantage of low mortgage rates while they last," said Klebhammer.
Last year, Schumer and Rep. Jamal Bowman, D-N.Y. called for federal help to refinance the $515 million mortgage on the complex.
Linda Berk, president of the board that oversees Co-op City, also urged Fudge to expedite the refinance process.
"We represent the possibility to have affordable housing, a quality of life, and nice things to come home to," Berk said at a press conference with the lawmakers. "We implore (Secretary) Fudge to continue to close the loop, connect the dots and do the right thing we need so we can continue to take care of ourselves."
HUD officials did not immediately respond to requests for comment.
"We are trying to take advantage of low mortgage rates while they last," said Klebhammer.
