Owners & management · 10/20/2026
Jackson Heights Co-op Refinances Mortgage to Fund $8M Facade Repairs
Southridge Cooperative Section 2 in Jackson Heights, Queens, needed major facade work on three of its six buildings after an inspection. Rather than pay Facade Inspection and Safety Program fines expected in the hundreds of thousands or levy a large assessment, the board refinanced into a $22 million loan. The phased work is now estimated at $7.6 million.
Reported by Habitat MagazineRead the original ↗
What happened
Southridge Cooperative Section 2, a 360-unit co-op made up of six buildings in Jackson Heights, Queens, is paying for major facade repairs through a mortgage refinance, Habitat Magazine reported on October 20, 2026. A facade inspection found that three of the six buildings needed substantial work on pointing, the building envelope, window lintels and parapet walls.
The board ruled out a large assessment or a steep maintenance increase as unrealistic for the middle-class co-op. It also considered delaying the work and paying fines for missing the Facade Inspection and Safety Program deadline, with the next five-year cycle about a year away. Those penalties were expected to reach hundreds of thousands of dollars, and the work would still be needed later, likely at a higher price. Delay also risked the buildings losing their SWARMP (Safe With a Repair and Maintenance Program) status and becoming unsafe. According to Evangelos Fantakos of Highrise Property Management, the co-op's managing agent, that would have meant sidewalk bridges around the entire property.
The co-op's underlying mortgage stood at roughly $8 million and was coming due. The board chose a $22 million refinance and is using the extra money to fund the project, with a cushion for rising costs and inflation. After a town hall meeting, shareholders accepted a 10% maintenance increase and a $7 per share assessment. The headline describes $8 million in repairs. The article says current estimates put the project at $7.6 million, slightly below budget.
Work began earlier this year and is being done in phases. The co-op may be able to use the newly revived J-51 tax abatement. It is also working with a Con Edison incentive program to see if it can get help with roof insulation.
Key facts
- Property
- Southridge Cooperative Section 2, Jackson Heights, Queens
- Size
- Six buildings, 360 units
- Buildings needing repairs
- Three of the six
- Old mortgage
- Roughly $8 million, coming due
- New mortgage
- $22 million refinance
- Project cost
- Current estimate $7.6 million, slightly below budget
- Shareholder costs
- 10% maintenance increase and a $7 per share assessment
- Management company
- Highrise Property Management (Evangelos Fantakos, managing member and CEO)
What it means
Buyers and owners
Shareholders here are paying for facade work through higher maintenance and a per-share assessment instead of one large lump-sum assessment. Buyers looking at any co-op should ask about upcoming facade work, recent refinancing and planned maintenance increases.
Landlords
Owners of buildings covered by the facade program face a real choice between paying for repairs now or paying fines and still doing the work later. This case shows that refinancing a maturing mortgage is one way some buildings fund the work, though it adds debt.
The highlights
- A facade inspection flagged 3 of the 6 buildings in the 360-unit co-op.
- The board took a $22M refinance on a roughly $8M mortgage that was coming due.
- Shareholders face a 10% maintenance hike and a $7 per share assessment.
Why it matters Landlords
Owners facing FISP repairs can weigh refinancing against fines, sidewalk sheds and the revived J-51 tax abatement.
What to do: Check your next FISP deadline and price repairs before fines build up.
Not known yet
- The new loan's interest rate, term and lender
- When the phased work is expected to finish
- Whether the co-op will actually qualify for J-51 and how much it could save
- Whether the Con Edison roof insulation help will come through
Background
In New York City, the Department of Buildings' Facade Inspection and Safety Program (often called Local Law 11) requires owners of buildings taller than six stories to have exterior walls inspected by a qualified professional every five years and file a report. Conditions are rated Safe, SWARMP or Unsafe. A SWARMP condition must be repaired before the next cycle, and an Unsafe condition requires immediate public protection such as a sidewalk shed and prompt repairs. Late filings and uncorrected conditions can bring civil penalties. J-51 is a city property tax benefit administered by HPD that can offset the cost of certain capital improvements in eligible residential buildings.
Summary written by Bulwark from Habitat Magazine’s reporting. The original story is at habitatmag.com. This is general information, not legal advice.
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Photo: Andre Carrotflower, CC BY-SA 4.0