Adler explains co-op equity building and resale schedule

Next slide, please.

So as homeowners, how do these co-op shareholders build equity in their homes?

What we do to both ensure building equity for low-income residents, but also maintaining this goal of providing long-term affordable housing stock, is that we have a resale schedule.

After a certain number of years, the amount of money that you're able to sell these units for increases, but it still remains, even at maximum, within a certain AMI range for resale profit.

You can see that in the table above.

The goal of this is to balance, like I said, the wealth building and the permanent affordability, and generally has been a significant success in buildings that have converted and maintaining.

Residents having this trade-off.

Next slide, please.

So where are we in the development timeline?

We are currently towards the end of the pre-development process.

Sponsor designation happened a couple Augusts ago through both qualifying for an RFQ and tenants voting on their preferred developer.

It resulted in Novus being the designated sponsor for this project.

We have since gone through the pre-development of initial budgeting, financing.

We have a scope of work.

We're currently signing off on license agreements.

We are going through the OMB process with financing.

This is one of the last main stages of this.

After this, we secure through OMB, and then tenants are relocated before we begin major gut and rehab.

That will bring us to the development stage, where, of course, it's deed transfer construction loan.

And towards the end of that process, we start doing legal transactions with the city and bringing tenants who have succeeded in their programs back to the building.