Riverbay Board seeks private funds to pay off Co-op City debt

Debt ridden Co-op City has rejected a state bail out plan in favor of a larger loan from a private bank.The Riverbay Board that manages Co-op City, one of the largest affordable housing complex, voted 9-2 Tuesday in favor of a $480 million, 15-year mortgage. Officials said they decided to go with the private loan because the state bail out would not provide enough money for the extensive repairs needed. The private loan would be at a rate between 5 and 7 percent. The housing complex's new loan must go through before the end of this month, if Riverbay hopes not to default on its current mortgage.

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