Rochester, NY. Nixon Peabody LLP is pleased to announce that client WinnCompanies has secured funding for a comprehensive, $137 million rehabilitation of the historic Pines of Perinton complex in Perinton-Fairport, New York, preserving the community as a key source of affordable housing in greater Rochester for decades to come.
Nixon Peabody served as legal counsel to WinnCompanies, advising on issues related to the U.S. Department of Housing and Urban Development (HUD), New York State regulatory compliance, federal and state housing and historic tax credits, financing, and environmental issues.
In addition to extending affordability provisions for at least the next 40 years, all 508 apartments in the complex will be modernized, and all units are designated as Low-Income Housing Tax Credit units, meaning that all apartments will be affordable for various income categories at or below 80% of the area median income. The work will be conducted as an occupied renovation, beginning in the spring of 2023, and is expected to be completed by the fall of 2025. As part of the project, Pines of Perinton will also convert 26 units to ADA-accessible housing, and the property’s Community Building—where daycare, tutoring, and other resident services now take place—will be renovated to include a business center, fitness room, and event space for resident use.
“We have been working with Pines of Perinton for many years, and it is gratifying to see this substantial rehabilitation move forward,” said Steve Wallace, a partner in Nixon Peabody’s Affordable Housing & Real Estate practice.
“From the initial HUD and Mitchell Lama approvals to this closing on historic and housing tax credits, with a number of stages in between, a large team of Nixon attorneys has become quite familiar with Pines of Perinton over the years,” said Meghan Altidor, also a partner in Nixon Peabody’s Affordable Housing & Real Estate practice. “We are proud to have been part of a long-term affordable housing preservation strategy with Winn to create a positive impact for the region.”
In addition to financing from WinnCompanies, numerous agencies are supporting and funding the project. New York State Homes and Community Renewal (NYSHCR) and the New York State Housing Finance Agency (NYHFA) are providing tax-exempt bonds, a first mortgage loan, and subsidy loans, along with an allocation of federal and state Low-Income Housing Tax Credits. The State of New York Mortgage Agency (SONYMA) is providing credit enhancement to the long-term first mortgage financing.
The New York State Historic Preservation Office (NYSHPO) and the U.S. National Park Service are facilitating the use of state and federal Historic Tax Credits, respectively. Bank of America is providing a construction loan letter of credit and has purchased all federal and state Low-Income and Historic Tax Credits.
The New York State Energy Research and Development Authority (NYSERDA) and Fairport Electric are providing energy efficiency grants. HUD, the Town of Perinton, Monroe County, and the Rochester and Fairport housing authorities are all playing critical roles in the preservation, rehabilitation, and provision of ongoing services for residents.
“Financing a redevelopment like this is a complex undertaking that requires partnership at every level of government and input from the community,” said WinnCompanies CEO Gilbert Winn. “We’re very pleased to commence the improvements we had planned since we acquired the Pines late in 2019 and to extend the community’s affordability. Once complete, this upgraded development will feature robust community gathering space, services, and support. We appreciate the patience and partnership that residents, our staff, government agencies, and our funders have shown to get this project to the starting line.”
Designed and constructed between 1972 and 1976, the Pines has been designated as historically significant as an example of pioneering affordable housing development and urban community planning policy and as a model of work by renowned architect Gwathmey Siegel and landscape designer Peter Roland. The community was recently listed in both the New York State and National Register of Historic Places. It is home to 1,191 residents, more than one-third of whom are children.
In addition to Wallace and Altidor, the Nixon Peabody team included partners John Cornell and Nathaniel Cushman, counsel Dana Stanton, associates Michelle Cafarelli Kabat and Kelly Sprague, senior paralegal Christine Brosonski, paralegals Brian Murphy and Olivia Logan, and law clerk Jeremy Busch.