Renovation Update – 09/18/12

Following is an update for the renovation project:

  1. The owner submitted the application to HUD on September 7, 2012 for the funds necessary for significant renovation and upgrade of the building and apartments;
  2. HUD will now review the application over the next 3 to 6 months;
  3. Once approved, the owner will begin work approximately 30 days after closing. We anticipate the start of work in either the first or second quarter of 2013, depending on how quickly HUD reviews the owner’s application;
  4. The construction work will take approximately 18 months to complete;
  5. There are funds in the construction budget to pay for support staff and financial assistance dedicated to helping the residents during the construction period;
  6. We will review the apartment renovation plan in detail with the residents at a building-wide meeting either in October or November of this year;
  7. Section 8 rental subsidy from HUD will continue at the property and residents will continue to pay no more than 30% of their income as rent;
  8. The market rate tenants will continue to pay the same rent as now, along with annual percentage rent adjustments as published by HUD (similar to the way rent stabilization works);
  9. No one will lose residency in the building because of the construction (unless, of course, they do not pay rent or violate the terms of their HUD lease in the normal course of day-to-day business).

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