false
0001649096
0001649096
2023-06-29
2023-06-29
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
June 29, 2023
CLIPPER REALTY INC.
(Exact Name of Registrant as Specified in Charter)
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Maryland
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001-38010
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47-4579660
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(State or Other
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(Commission
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(IRS Employer
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Jurisdiction of
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File Number)
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Identification No.)
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Incorporation)
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4611 12th Avenue, Suite 1L
Brooklyn, New York
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11219
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(Address of Principal Executive offices)
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(Zip Code)
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Registrant’s telephone number, including area code: (718) 438-2804
Former name or former address, if changed since last report: N/A
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2.):
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☐
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Securities registered pursuant to Section 12(b) of the Act:
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Title of each class
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Trading Symbol
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Name of each exchange on which registered
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Common Stock, par value $0.01 per share
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CLPR
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New York Stock Exchange
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Item 1.01. Entry into a Material Definitive Agreement.
On June 29, 2023 Clipper Realty Inc. (the “Company”), entered into a 40-year regulatory agreement between its 2,500-unit Flatbush Gardens property and the New York City Department of Housing Preservation and Development (“HPD”) under Article XI of the Private Housing Finance Law.
Under the agreement with HPD the Company will receive a real estate tax exemption, which presently amounts to approximately $7.4 million annually, commit to a three-year capital improvement plan, maintain rents within current categories based on area median income, set aside 250 units for formerly homeless households with full governmental rental assistance, and increase the pay rates of non-union employees at the property to prevailing wage guidelines, which will presently amount to approximately $750 thousand per annum. The three-year capital improvement commitment could amount to approximately $27 million and follows improvements over the last three years of about the same amount. To further assist the Company in meeting these additional commitments, the Company has been made eligible to receive enhanced reimbursements for tenants receiving assistance which could amount to approximately $8 million per annum under current guidelines when fully implemented as leases renew over the next two years.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits.
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Exhibit
Number
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Exhibit
Description
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10.1
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Affordable Housing Regulatory Agreement, dated June 29, 2023, between Renaissance Equity Holdings LLC A, Renaissance Equity Holdings LLC B, Renaissance Equity Holdings LLC C, Renaissance Equity Holdings LLC D, Renaissance Equity Holdings LLC E, Renaissance Equity Holdings LLC F, Renaissance Equity Holdings LLC G, Flatbush Gardens Housing Development Fund Corporation and The City of New York.
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99.1
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Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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Clipper Realty Inc.
(Registrant)
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By:
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/s/ David Bistricer
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Name:
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David Bistricer
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Title:
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Co-Chairman and Chief Executive Officer
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Date: July 5, 2023