Council Member Dinowitz on Tracy Towers $40M HPD loan as deferred debt
Dinowitz clarifies that the $40M HPD put into Tracy Towers is a loan, not a grant, and expresses concern that residents were told it was an investment. Phillips confirms it's a loan with no principal/interest payments due, deferring and accruing to the end of the term.
I want to ask about the $36 million of Tracy.
It is for elevator replacements.
There were security.
Elements in there, I believe, like the gate for the parking lot.
Was cameras part of that, the scope of work as well?
Security system.
From 2016?
I'm sorry.
The $36 million recent one, yes.
Okay, so yeah, so we, HPD actually put in, I believe, around $40 million in city capital.
And the scope is from broadly garage work, some plumbing repairs.
Oh, sorry, that's phase two.
Elevators, facade, plaza repairs, security upgrades, playground improvements.
Okay, I just want to be clear.
Tell me if I'm off base, but when you say HPD put in $40 million, what you mean is that the city council, through its city of yes negotiations, allocated more funding and secured more funding
for city-run michelamas, and Assemblyman Zaccaro secured $10 million, and the $40 million is actually a loan, correct?
HPD lent $40 million in city capital like we would any other affordable housing project.
So $40 million of city capital was lent to the project with deferred, sorry, no principal or interest payments due, fully deferring and accruing to the end of the loan term.
Right, but it is a, I just want to be clear, it's a loan.
So this isn't the city investing money to improve.
It is the city investing a loan that at some point has to be paid back.
Right?
I mean, sure.
Yeah, okay.
Loans have to be paid back.
I just want to make sure we're clear because when we fight for this funding in the city government or when our colleagues in government secure this funding and we celebrate,
Because we're going to see improvements to the building.
And to find out later that this is just a loan, it feels a little different than it should.
It's a loan where no principal and interest payments are due.
Until it's due.
Until the balloon is due at the end of 30 years.
Right.
And then at 30 years, well, you know, I guess their children will be dealing with it.
I don't know.
The, yeah.