Hudson Valley (General Partner of Colt Arms Preservation Urban Renewal, LP) has acquired Colt Arms Apartments with plans to preserve the long-term affordability for the seniors living in the building. The property, which was built in 1975, is located at 52 Godwin Street in the Wrigley Park section of the City of Paterson.  This Section 236 senior property is a masonry and brick fourteen story building consisting of two hundred seven (207) units. It includes fifty (50) efficiencies, one hundred fifty six (156) one-bedrooms, and one (1) two-bedroom super unit. Fifty two (52) of the one-bedroom units include private outdoor balconies. All 206 tenant-occupied units are age-and income-restricted under the program administered by the US Department of Housing and Urban Development (HUD) and HMFA. Forty-four of the tenant-occupied units are covered by a project-based Section 8 contract (HAP) which is administered by DCA, and 40 units receive assistance under a Rental Assistance Payment contract (RAP) which is administered by HMFA. The subject property also contains a gated surface parking lot with capacity for 69 vehicles. The building contains two elevators, which serve the ground floor to the 14th floor. Two interior stairways provide access from the ground floor to the roof. The ground floor houses a reception area, mailroom, a community room, a management office and laundry facilities.

The renovation planned is substantial – over $10.9 million will be invested in the building. The rehabilitation will include replacement and upgrade of the heating system, improvements to kitchens and bathrooms including new flooring, appliances, fixtures, painting and new flooring for the hallways, lighting, roof and renovation of all common areas. Exterior work will include brick masonry re-pointing, improvements to the parking lot and walkways, and tenant recreation spaces. The building’s fire alarm will also be upgraded.

The owner will be an affiliate of Hudson Valley Property Group, located in New York, NY. The developer is experienced with the acquisition, rehab and operation of affordable housing. Colt Arms is one of the first four preservation projects in the nation utilizing the Rental Assistance Demonstration (RAD) program. The recent congressional approval of the use of these contracts is key to preserving more than 30 percent of the 1.34 million units in the program that are otherwise set to expire by 2017. Affordable Housing Finance speaks more about the first RAD conversion transactions in their January 2016 article.

The project will be financed utilizing the NJHMFA Conduit Bond Program, equity generated from the sale of 4% Low Income Housing Tax Credits, and deferred developer fee.