Sims Mortgage Funding Implements $7M Note Modification for Affordable Community in Brooklyn

by Jeff Shaw

NEW YORK CITY — Sims Mortgage Funding (SMF), a subsidiary of HJ Sims, has arranged a HUD-insured loan totaling $7 million for Marien-Heim of Sunset Park, a 169-unit, Section 8 elderly housing project located in Brooklyn.

The borrower is a local, nonprofit community development organization. SMF served as financial advisor.

This was SMF’s second successful transaction for Marien-Heim. In 2012, SMF originated an $8.3 million FHA-insured Section 223(f) loan that refinanced its Section 202 direct loan, funded capital reserves and repairs, earned the borrower a development fee and generated annual debt service savings.

Interest rates have declined since the original refinancing, providing Marien-Heim with the opportunity to generate additional debt service savings.

The move reduced Marien-Heim’s interest rate by 28 percent and will generate annual debt service savings of approximately $48,000 through the remaining term of the loan.

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