Empty Bushwick Condos Will Be Made Into Affordable Apts.

New York State has agreed to insure a multi-million dollar mortgage to a developer in order to convert a Bushwick condominium into affordable housing units.

The board of directors for the State of New York Mortgage Agency (SONYMA) approved a commitment to a $37.5 million mortgage to the Troutman Gardens organization for the conversion of a five-story condo building at 114-136 Troutman St.

Originally constructed with the intention of selling the individual apartments, no units in the building have been sold up to this point, according to SONYMA. The mortgage agreement allows Troutman Gardens to make the necessary improvements in order to rent the vacant units for middle class tenants.

The mortgage guarantee was the largest in a series of grants issued last Thursday, Jan. 28, by SONYMA for housing projects and developers across New York State. Funds for the program are provided through the SONYMA Mortgage Insurance Fund.

“Our action is part of a larger effort by our agency to preserve neighborhoods whose stability could be undermined by condominium buildings that have been built but are no longer marketable,” said Judd S. Levy, SONYMA chairman. “Turning these multi-family projects into rental housing stabilizes communities and provides much-needed housing for middle class families.”

“Affordable housing for constituents in Brooklyn and throughout the state has always been one of my top priorities,” said Assemblyman Vito Lopez, who chairs the Assembly Housing Committee. “In the wake of this recession, it’s especially crucial that we provide low- and middle-income residents with assistance. These grants will help to preserve our communities and aid struggling neighinjured, borhoods.”

The agreement allows the lenders to sell their mortgages to the New York City employee pension funds, which aims to help spur further investment in new housing around the city. Since the condos were built with a 421(a) tax exemption, the rents for the Troutman Gardens building will be subject to state rent stabilization laws, making the units affordable to households (families of four) with a maximum income of $103,680.

In 2009, SONYMA reduced its pre-sale requirement for buildings located in areas considered to be economically distressed. Under this policy, according to the agency, 40 percent of the units in a condominium development must be sold in order for the vacant units to become eligible to receive a SONYMA-supported mortgage.