Bronx-based affordable housing developer Valdesia Gardens Housing Development Fund Corp. filed for Chapter 11 bankruptcy in New York on Friday, citing $22.6 million in liabilities, including a $19 million claim from a primary lender and additional legal disputes tied to personal injury, labor laws, and foreclosure actions.
Debt and Creditor Details
Valdesia Gardens listed $22.4 million in secured debt backed by its property, which is valued at $15 million, and $168,638 in unsecured debt.
Key creditors include:
- Community Preservation Corp. (CPC): The nonprofit finance entity linked to a $19 million mortgage claim.
- Internal Revenue Service: $1.2 million owed.
- New York City Department of Housing Preservation and Development: $2 million owed.
The housing complex, located at 569-575 Prospect Ave. in the Bronx, is an affordable housing project that, once completed, will provide 44 units for residents earning up to 70%-90% of the area median income.
Refinancing and Restructuring Efforts
The debtor is seeking to refinance the CPC loan through the bankruptcy process to complete construction, which is reportedly 85% finished.
