Villa Victoria is a 194-unit, project-based Section 8 development located in Newark , NJ .5 miles from the Newark Broad Street light rail. The development is comprised of an 8-story midrise building and 11 townhome clusters. Hudson Valley Property Group (HVPG) acquired the property in 2018 with the goal of preserving the units as low-income housing for Newark families and seniors. The property required significant capital needs improvements and modernization renovations making it an ideal candidate for a low-income housing tax credit (LIHTC) preservation project. To ensure project feasibility, HVPG had to secure a property tax exemption from the City of Newark and a HUD mark-up-to-market (MU2M).
Hudson Valley Property Group pursued a LIHTC-financed acquisition of Villa Victoria. The owner received a market based rent increase to support the project, along with a new HAP contract. The team worked closely with local representatives and the City of Newark to secure a tax abatement, or Payment in Lieu of Taxes (PILOT), for the property as well. The preservation project included a $6MM renovation of the property.
FINANCING AND SUBSIDY:
The acquisition of the property was financed through Low Income Housing Tax Credit and tax exempt bonds. Red Stone Tax Exempt Funding LLC arranged for the direct purchase of the tax exempt bonds.
- Long-term affordability preserved for decades to come; secured by issuance of a new 20-year project-based HAP contract issued by HUD
- Additional rental subsidy secured through mark-up-to-market (tenant rents remained unchanged)
- Tax abatement secured in partnership with the City of Newark
- $6MM renovation prioritizing building modernization, energy efficiency upgrades and resident quality of life improvements
SCOPE OF WORK:
- Environmental: energy-saving appliances in units, low flow plumbing fixtures, system upgrades (including ventilation and heater replacement)
- Safety: units designated as ADA accessible, as well as units for the hearing and visually impaired, fire alarm system upgrade, building entry system/intercom upgrade, security system upgrade
- Building exterior and grounds: landscaping, new site lighting, new roof and insulation, repointing and cleaning of exterior facades
- Building interior: new community room kitchen, ADA accessibility improvements for common areas, elevator modernization, new flooring, lighting, and architectural features
- Resident units: kitchen and bathroom renovations, new unit lighting, and painting in all units