RiseBoro Community Partnership, a leading nonprofit dedicated to community revitalization, and Blackstone (NYSE: BX), through its affordable housing portfolio company April Housing, announced an agreement to restructure their partnership to preserve affordability at three multifamily properties totaling 190 units in Brooklyn, New York.
This agreement resolves litigation between RiseBoro and the former limited partner, which Blackstone inherited in connection with its acquisition of a large affordable housing portfolio from AIG. Under the terms of the restructured agreement, RiseBoro will acquire a majority interest in the properties.
The case was one of several recent disputes centered on a nonprofit’s right of first refusal to purchase an affordable housing development. These cases are important to the affordable housing industry, which in recent years has been seeing some investors challenge the ability of nonprofits to exercise their right of first refusal under the low-income housing tax credit program.
“RiseBoro and Blackstone share a commitment to preserving affordable housing and delivering residents the services that they need to thrive. We are pleased to have reached a resolution that puts residents first and ensures our communities will remain affordable for decades to come,” said Scott Short, CEO of RiseBoro, in a statement. “Responsible investors play a critical role in our country’s affordable housing ecosystem, and we are pleased to be establishing a new model for partnership among nonprofit organizations and private investors.”
In order to support RiseBoro’s vital work within the Bushwick community in Brooklyn, Blackstone has committed to donate $1.2 million over 15 years to fund RiseBoro’s resident support services.
Alice Carr, CEO of April Housing, said, “We are thrilled to reach an agreement with RiseBoro that will allow us to further our shared mission of preserving affordable housing. We greatly value the expertise and dedication of the RiseBoro team, and we welcome the opportunity to provide them with resources to enhance their exceptional resident services program as we continue to work together to support residents and local communities.”