The 63-year-old Griffin was originally built as an apartment hotel and converted to a cooperative in 1987. At the time a little more than half of the units were sold and very few were purchased since, mostly due to the building's heavy debt and uncertain future. In 1992, the co-op's $4.25 million mortgage was taken over by the Federal Deposit Insurance Corporation (FDIC) after it defaulted on its payments. Just on the brink of disaster their board contacted local politicians who informed them about a new loan program that could solve their problems. Through a $2.6 million loan provided by the Community Preservation Corporation (CPC), a not-for-profit mortgage lender that specializes in financing low- and moderate-income housing, they were able to negotiate a buy-out of the old mortgage and received a new mortgage to help with repairs to the building. The new mortgage was signed by the board president on October 21, 1995, two weeks before the mortgage burning.

With several new loan programs becoming available, buildings like the Griffin can now qualify for loans they were not previously eligible for due to financial problems or small size. The CPC program that saved the Griffin was established in 1994 when Governor Mario Cuomo signed legislation that was strongly supported by Queens Borough President Claire Shulman. It combines public and private funding, a total of $100 million, to help guarantee the loans and to give buildings a new start.

CPC's mortgage funding is insured by the State of New York Mortgage Agency (SONYMA) Mortgage Insurance Fund and helps refinance underlying mortgage loans on co-op buildings for which the owners have been unable to obtain refinancing of existing mortgages. Because these buildings will be restored to sound financial footing, CPC's member institutions, such as Astoria Federal Saving and Loan Association, the Bank of New York and Emigrant Savings Bank, will also provide individual cooperative share loans and mortgage insurance where necessary, to help spur unit sales.

One year ago, this program was started to help troubled co-ops. Since then $90 million has been used, said Michael Lappin, president of CPC, at the mortgage burning for the Griffin. We are delighted by the response to this program and are exploring the potential for additional funding capacity beyond the $100 million committed by our member institutions. This program restores the dream of home ownership to new purchasers, renews the optimism of current owners, preserves buildings, and strengthens neighborhoods. To qualify for this program cooperatives must have at least 40 percent of the units sold and, except for extenuating circumstances, at least 75 percent of the sold units must be owner-occupied.

I am sure I speak for all the shareholders when I say that I'm overjoyed that the building finally has ffb a mortgage and the apartments are once again marketable, says Tanya Hill, board president of the Griffin. It is a great feeling to know that so many people were willing to help us, especially CPC. It's nice to see good things happening in co-ops. Deputy Borough President Gadson, adds, The Griffin is a vital part of the Fort Greene landscape. By enhancing stability in housing, the community is enhanced. Our focus must be to create prominent housing.