Hudson Valley Property Group (HVPG) has expanded its presence in New Jersey with the acquisition of a 170-unit affordable housing development.
The leading preservation firm acquired Asbury Gardens, a two-building property in Asbury Park, from a national affordable housing company.
"We’re excited to expand our presence in New Jersey and build on our commitment to delivering essential improvements and supportive services to our residents and communities," said Jason Bordainick, co-founder and managing partner of HVPG. "We look forward to working closely with the city of Asbury Park, the state of New Jersey, and Department of Housing and Urban Development to protect the city's supply of quality, affordable housing amid rising demand."
HVPG said it is planning approximately $7.6 million in renovations at the property, prioritizing building modernization, high-end security, energy-efficient and water-saving upgrades, and resident quality of life improvements.
Enhancements will include updated in-unit kitchen and bathroom amenities, upgrades to property common areas, including a new business center, new roofing, and complimentary high-speed Wi-Fi for residents. The scope of work will also include a playground, lighting, and landscaping upgrades, electrical vehicle charging stations, and an urban farm developed in partnership with Kula Urban Farms, a local neighborhood institution.
To ensure long-term affordability for its residents, HVPG has secured a new project-based Section 8 Housing Assistance Payment contract, which means nearly all residents will pay no more than 30% of their annual income on rent. The property is further restricted to residents earning no more than 60% of the area median income. As a result of this acquisition, this level of affordability will be preserved for an additional 27 years.
Resident services programming will be provided and informed by direct survey feedback from residents themselves with a focus on access to education and other resources.
The city of Asbury Park supported the deal with a new 35-year payment in lieu of taxes agreement.
In addition, the project is being financed through a combination of equity from HVPG’s preservation fund and a Freddie Mac loan provided by KeyBank. Officials said the project is representative of a $45 million direct investment (total project costs) into preserving and elevating quality affordable housing for low-income families within the community.