Clipper Realty signs 40-year tax exemption deal for Flatbush Gardens, saving ~$7.4M/yr

Clipper Realty Inc.

40-year Article XI agreement with NYC HPD provides full real estate tax abatement worth ~$7.4M annually.
Company commits to $27M capital improvements over three years; similar amount spent in prior three years.
250 units set aside for formerly homeless with full governmental rental assistance; non-union wages raised to prevailing wage (~$750K/yr).
Enhanced rental assistance reimbursements expected to reach ~$8M per year when fully implemented.
Transaction expected to be accretive to AFFO and FFO, per press release.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 1.0

Clipper Realty Inc. entered into regulatory agreement with New York City Department of Housing Preservation and Development ("HPD") valued at $7.4 million (effective 2023-06-29).

Action: entry
Counterparty: New York City Department of Housing Preservation and Development ("HPD")
Value: $7.4 million
Effective: 2023-06-29

Exact text from the filing

On June 29, 2023 Clipper Realty Inc. (the “Company”), entered into a 40-year regulatory agreement between its 2,500-unit Flatbush Gardens property and the New York City Department of Housing Preservation and Development (“HPD”) under Article XI of the Private Housing Finance Law.

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Clipper Realty Inc. filing history →

Source: SEC EDGAR

accession 0001437749-23-019357

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