Investment Management

Hudson Valley Preservation Funds are Community Reinvestment Act-eligible real estate private equity funds managed by Hudson Valley Property Group (HVPG), an owner, developer, and operator of affordable housing. We leverage our expertise and relationships to apply a traditional model of investing in real estate to this specialized industry, preserving existing affordable housing while ensuring each asset is optimally financed, renovated, and operated.

The Firm completed 30 transactions which includes acquiring 57 properties consisting of more than 8,000 units of affordable and workforce housing. These include senior, family and mixed-resident properties nationwide which total over $1.6B in project costs.

The Firm has secured and deployed approximately $245.7M of private equity and $150M of tax credit equity for the acquisition and rehabilitation of these properties.

ESG/IMPACT

HVPG utilizes the United Nations Sustainable Development Goals to set impact objectives for the Fund’s investments and set strategic goals for our organization including:

  • Make property improvements to increase energy and water savings and reduce our environmental footprint
  • Preserve and create affordable housing to improve health educational, and economic outcomes for our residents
  • Enhance and create resident services across our properties
  • Leverage limited state and federal resources to support affordable housing goals

Best-in-class Preservation Platform

Affordable housing preservation is the Firm’s only asset class and the sole focus of each employee. Our team has expertise with the relevant regulations, agencies, preservation tools, and creative financial structures needed to ensure success. From sourcing to acquisitions, development and construction, we have a best-in-class team with a deep understanding of this highly specialized asset class. We excel with our experience in navigating regulatory restrictions, preservation tools and agencies, which is crucial to execute on these projects. We utilize a broad sourcing network to access differentiated or off-market opportunities, transacting directly with owners, using repeat JV partners and property managers and maintaining flexibility when working with not-for-profit owners, all allowing us access projects that many firms are not likely to identify. Through our relationships, sourcing, and development, we have built an excellent reputation as reliable and sophisticated investors which also allows us to choose dependable and top-rated partners. This reputation is critical to our success in this asset class.

Value-Add Approach

Through our integration of acquisition, development, asset management, disposition, accounting and legal administration functions, we add value by implementing operating strategies that yield higher cash flow, ensure the property’s best performance and quality, and secure housing for residents. We:

Optimize revenue

We work closely with regulatory agencies to maximize subsidy contract rents, ensuring property and residents receive maximum eligible subsidy.

Operational efficiency

We identify where operating expense savings can be achieved, eliminating excess spending and ensuring rehabilitation projects have dedicated construction budgets for sustainable and energy-saving upgrades.

Tax benefits

We minimize property tax burdens by working with local stakeholders to ensure existing tax breaks remain in place, securing term extensions and a further reduced tax rates when possible, and evaluate tax credits available for properties that would benefit from significant rehabilitation.

Development potential

We explore all avenues for excess FAR, including air rights, at existing sites.

Asset management

We complement and enhance third-party onsite property managers, ensuring properties maintain highest possible occupancy utilize all available subsidy programs and low-income housing resources, and have access to operational best practices.

Compliance

We ensure all properties adhere to HUD, agency, accounting and investor compliance regulations.

ESG

We evaluate properties with an environmental, social, and corporate governance framework, expanding services and programming that raise the standard of living for the residents and reduce turnover.