Berkadia Arranges $219 Million Fannie Mae Loan for Genesis Companies' Rangel Houses Rehab in Harlem
Berkadia has arranged a $219 million Fannie Mae permanent loan to support the substantial rehabilitation of Rangel Houses, a 984-unit affordable housing multifamily community in Harlem, New York City, the firm announced Nov. 4, 2026. Managing Directors Matthew Baptiste and Heather Olson of Berkadia Affordable Housing arranged the financing on behalf of Genesis Companies.
The financing was completed in partnership with the New York City Housing Authority (NYCHA), the New York City Housing Development Corporation (HDC) and Goldman Sachs under NYCHA's Permanent Affordability Commitment Together (PACT) program.
$669 Million Capital Structure for Rangel Houses
The $219 million Fannie Mae first mortgage is one component of a $669 million capital structure. The announcement also cites approximately $214 million in New York City subsidy and $94.5 million in federal and state historic tax credit equity, with Goldman Sachs serving as the historic tax credit investor. The itemized components total approximately $527.5 million.
The Fannie Mae loan carries a 15-year permanent term, five years of interest-only payments and a 40-year amortization schedule. The $219 million loan equates to roughly $222,561 per apartment, while the full capital structure equates to about $680,488 per apartment.
Rehabilitation Under NYCHA's PACT Program
The financing will support the preservation and substantial rehabilitation of 100% fully subsidized housing through a blend of Rental Assistance Demonstration (RAD) and Section 18 programs. The property is subject to long-term affordability protections, with all units serving households earning at or below 80% of area median income. Of the 984 units, 954 are designated for very low-income residents.
NYCHA has said the broader PACT project will deliver approximately $529 million in comprehensive renovations, including improvements to apartments, shared spaces, grounds and building infrastructure. Earlier NYCHA materials placed the capital-repair need at more than $552 million. Planned work includes new or upgraded kitchens and bathrooms, appliances, flooring, interior doors, windows and cabinets, as well as facade and building-envelope repairs, improved ventilation, stormwater management and flood-mitigation measures.
The PACT conversion of Rangel Houses to project-based Section 8 was completed Oct. 15, 2026. It followed NYCHA's selection of Genesis Companies and the Community League of the Heights (CLOTH) in September 2023.
Executives on the Genesis Companies Transaction
"We are proud to support the shared commitment to preserving affordable housing in New York City. Transactions like Rangel Houses require a highly coordinated capital structure that combines public subsidies, tax credit equity and agency financing," said Baptiste. "We value the opportunity to help drive meaningful reinvestment in the community and make a lasting difference for current and future residents."
Karim Hutson, president and CEO of Genesis Companies, said: "This closing represents years of work to bring together the resources and partners needed to make a transformative investment in Rangel Houses. With this financing in place, we can move forward with comprehensive renovations that will modernize nearly 1,000 homes and preserve an important source of affordable housing in Harlem. We're grateful to our partners, Berkadia, NYCHA, CLOTH, Goldman Sachs, and the entire project team for their partnership in helping us reach this milestone."
Olson addressed the interest rate environment. "With the current volatility in the interest rate markets, Berkadia, in partnership with Fannie Mae, structured a creative financing plan that ensured the permanent loan proceeds were kept intact. These dollars were critical to funding the substantial rehab at Rangel Houses," she said.
About the Harlem Property
Rangel Houses is an 11-acre public housing campus at 159-16 Harlem River Drive in Manhattan. Built in 1951 as Colonial Park Houses, the community was renamed in 1977 in honor of tenant association president Ralph J. Rangel. The development comprises eight high-rise elevator buildings containing 984 apartments that are home to more than 1,800 residents. Community amenities include playgrounds and open space, commercial space, a senior center, a daycare center and a youth center. A New York City public notice identifies the project site as 159-04 Harlem River Drive.
Berkadia Affordable Housing is a financial services platform that combines mortgage banking, investment sales and tax credit syndication.
Outlook: Public-Private Structures for Public Housing
The transaction reflects the growing reliance of public housing owners on combined structures that draw on tax credits, agency debt and rental assistance programs to fund large capital needs. In a project where rents are subsidized, preserving the senior loan proceeds is significant to the rehabilitation budget, a point Olson cited in describing the structuring of the loan amid interest rate volatility.
Sources
Berkadia: https://www.berkadia.com/news/rangel-houses-new-york-ny-financed-by-berkadia-2026/