2006 Section 108 Project Summaries - New York

Sapounas, Inc.
Rockland County, NY
Section 108 Guaranteed Loan- $800,000

Rockland County will provide financing to Sapounas, Inc., the for profit Developer, to assist with the development of a 9,000-square foot marketplace. The County will HOME grant funding to assist Sapounas develop affordable housing units above the marketplace in a three story building in the Village of Nyack, NY, a small community in the County.

The marketplace will be located on the ground floor of the building, and the affordable housing units will be on the second and third floors. The housing will be for the Village's fire fighters and the marketplace will specialize in quality groceries, produce, and prepared foods. Sapounas, Inc. will operate and own the project upon completion.

The County will re-lend its guaranteed loan funds to Sapounas, Inc. for financing the purchase of the marketplace equipment costs. Sapounas will combine the County's funding with a $3,050,000 in bank loan and Developer equity to fund the project for a total project cost of $5,023,800.

The Community Development Block Grant (CDBG) national objective for the County's use of the guaranteed loan funds is to benefit low-moderate income persons through job creation. The project will create an estimated 16 new full-time jobs.

The County will repay the Section 108 Guaranteed Loan over a 20-year period, paying interest only for the first two years. The County will use revenues it receives from the Developer from the market to repay its guaranteed loan. To secure repayment of the guaranteed loan, the County pledges its interest in its third-party loan to Sapounas, Inc., which will be secured by a second lien position on the three-story building and personal guarantees from the Developer and the Developer's partners. The County also pledges its CDBG funds as security for the repayment of its guaranteed loan.