774 Union Housing Development Fund Corporation (Hdfc)

2. Amendment 2

   The amendment changes the HPD mortgage amounts and terms, adds a per-buyer AHC grant agreement, reprices Apartment 3A, revises flip tax and Sponsor Control Period terms, and shifts some closing costs to the Sponsor for existing tenants.

   • HPD Permanent Loan B raised to approximately $3,251,792 (not $1,964,210) and HPD Permanent Loan C to approximately $891,923 (not $187,420)
   • HPD mortgages consolidated into one mortgage of $11,116,840; HPD interest rates reduced from 1% to 0% and terms extended from 30 to 40 years
   • CPC Bridge Mortgage (12-month term) will not be assumed but documented as a new mortgage from the HDFC; no AHC enforcement mortgage
   • Apartment 3A changed from Insider to Outsider; Purchase Price now $74,014 (rather than $2,500) and rents total $7,725.50 (rather than $3,193)
   • Each purchaser signs an AHC Note and Security Agreement instead of the HDFC; $40,000 AHC Grant bears no interest and is repaid over 10 years
   • Flip taxes modified: Type 1 sale permits retaining 90% of Sale Profit after 10 years; Type 2 sale permits 90% after the first year
   • Sponsor Control Period runs until six months after the Bridge Loan Satisfaction Date
   • Sponsor pays standard closing costs for Existing Tenants; Outsiders pay their own fees

1. Amendment 1

   This amendment declares the cooperative plan effective, based on Insider purchase agreements covering 71.4% of current Insiders, and explains the next steps before closing.

   • Effective Date set as September 16, 2024, based on Purchase Agreements and Purchasing Tenant Affidavits from 5 Insiders representing 71.4% of the 7 current Insiders
   • HPD allowed effectiveness with less than 80% of apartments under contract
   • Written notice of the Effective Date to all Purchasers expected on or about January 1, 2025
   • Insiders who are not current in rent have fifteen days to become current or lose the right to buy at the Insider Price, unless a signed payment agreement is in place
   • Pre-closing appointments to be held at the Bronx Pro Group office, 1605 Dr. Martin Luther King Jr. Blvd, Bronx, NY 10453, expected in two to four months
   • Building has 26 Apartments, including 1 super unit that is not offered; 18 are vacant
   • Cooperative Information Package incorporated by reference, with no other material changes stated

Summarized from the amendments' text (scanned ones read with OCR); the filings themselves are on the Attorney General's site. 2 of 3 amendments summarized so far.