Sonnenschein Aids New York City Non-Profit With Office Purchase
Our attorneys recently assisted a leading provider of services to homeless individuals and families in New York City, the Center for Urban Community Services, Inc. (CUCS), in purchasing space for new headquarters in Harlem. Sonnenschein was approached about the opportunity by the Robin Hood Foundation, a pro bono partner of the firm, which funds and assists numerous anti-poverty programs in New York, in view of the firm's leading practice in the tax credit area. Our attorneys advised CUCS on financing options for 25,000 sq. ft. of condominium space in Harlem that it had contracted to purchase, and at CUCS' request began arranging financing under the federal New Markets Tax Credit program, which makes federal income tax credits available for loans to businesses operating in low-income communities.
The financing arrangements for CUCS' new headquarters included ownership of the condominium by CUCS Initiatives, Inc. (Initiatives), a not-for-profit controlled by CUCS, a lease from Initiatives to CUCS, and three loans from New Markets Investment XXI, LLC (CDE) to Initiatives. The complex financing made it possible for CUCS to purchase the new space with little money down, permitting the organization to end its Wall St. lease and establish a permanent home in the Harlem community with much-needed expansion space for programming and administration.
CUCS' mission is to reduce homelessness, advance effective housing and service initiatives and provide support for persons with mental illness, AIDS, alcohol and drug problems and other special needs. The organization is widely recognized as a leader in the development and advancement of practical, compassionate solutions for these populations and has expanded its initiatives in recent years, most recently through its merger with another New York City nonprofit, the Project for Psychiatric Outreach to the Homeless (PPOH). Sonnenschein had assisted PPOH on various matters in past years, and also assisted in this friendly merger.
CUCS Executive Director Tony Hannigan praised our team for their "patience, common sense, humanity, calm and humor." Leading the team was Alvin Goldman, who devoted more than 60 hours of his time to CUCS, while Kristin Bovalino devoted more than 100 hours to the effort, including an all-night closing. Many others in New York and Chicago, including Gary Goodman, Scott Lindquist and Richard Sadowsky, reviewed real estate and environmental aspects of the transaction, provided input on the New Markets Tax Credit Program, produced financing documents, and assisted in the lengthy closing process.
