This project encompasses the preservation of a five-property portfolio located in New Jersey. Cedar Run Apartments I & II are located in West Creek, NJ and consist of 72 units of senior, project based Section 8 housing. Millstream North, Millstream South & Maplewood Apartments are located in Wrightstown, NJ and consist of 128 units of family, low-income housing subsidized through HUD’s Rural Development program (RD). The properties were placed in service in the mid-1980s and required a substantial rehab to preserve them as quality affordable housing serving more rural communities in central New Jersey. To ensure the long-term success of the preservation effort, HVPG worked closely with NJHMFA, RD and HUD to structure and close on the acquisition/rehab.
FINANCING AND SUBSIDY:
The Cedar Run acquisition was financed through a 4 % low-income housing tax credit and NJHMFA conduit revenue bond execution. Tax credits were provided by Enterprise. The properties receive subsidy through HUD project-based Section 8 HAP contracts.
Millstream and Maplewood were financed with developer equity and debt issued through USDA in accordance with Rural Housing Service’s Section 538 Program (provided by Centennial Mortgage). Subordinate debt was provided by US Rural Development through the US Department of Agriculture.
- Affordability of family and senior low-income housing preserved long-term with extension of HAP Section 8 contract
- $15MM renovation across the five properties
- No displacement of residents
SCOPE OF WORK:
- Upgrades to community building, laundry room, and offices
- New vinyl siding, enclosed breeze ways, roofing with insulation/ gutters/ downspouts, windows and unit entry doors
- New building, site, and unit signage
- New Security camera system installation and LED lighting throughout the sites
- Landscaping and beautification upgrades along with new parking areas and sidewalks
- Market Rate finish upgrades throughout the apartment interiors
- New low- flow fixtures, Energy Star appliances, LED lighting, hot water heaters, air conditioning upgrades, hardwired smoke detectors, arc- fault breakers, thermostats/ baseboard
- Creation of fully compliant ADA units