Refinancing activity at an all-time high.

On the heels of a re-energized mortgage market in 2001, the first quarter of 2002 followed suit as refinancing activity reached all-time highs. The most prominent and obvious reason for the flurry of activity in the multifamily arena is the record-low interest rate environment. Housing cooperatives

In addition to refinancing existing loans, New York area residential properties are also borrowing money in the form of second mortgages and lines of credit. Due to Local Law 11 amendments, which now require inspections on all four sides of the facade, coupled with the wear and tear on interior common areas, co-ops and condos are now opting to take advantage of financing to pay for their capital improvement projects. With many buildings facing unanticipated and newly required projects, financing is one of the most affordable options for many of these housing communities. Once again, due to low interest rates, cooperatives and condominiums are frequently incurring necessary debt, without raising maintenance costs.

Currently, cooperative and condominium communities could not ask for a better financing market. With lenders providing a variety of financial packages at low rates, properties should make short-term and long-term plans enabling them to take advantage of this unique opportunity.