Hudson Valley Property Group Expands Presence with New Housing Acquisition in Hempstead, NY

Hudson Valley Property Group Expands its Reach in Affordable Housing

Hudson Valley Property Group (HVPG), a prominent player in affordable housing preservation, has recently announced a significant addition to its portfolio with the acquisition of the 100 Terrace Avenue Apartments in Hempstead, New York. This acquisition secures long-term affordability for 420 housing units in a region where affordable options are increasingly scarce.

As HVPG's first venture in Nassau County, this purchase signifies an ambitious expansion of its operations on Long Island, where the group already holds a property in Suffolk County. To date, HVPG has played a pivotal role in preserving nearly 2,300 units of affordable housing across New York State and New York City.

A Commitment to Enhancing Quality of Life

The total project investment for this acquisition is estimated at around $145 million. Included within that sum is approximately $23 million allocated for renovations, equating to an average of $55,000 per unit. These extensive renovations aim not only to enhance the quality of the living spaces but also to modernize essential infrastructure.

The updates will touch nearly every part of the residents' living experience. Enhancements include new cabinetry, energy-efficient appliances, and updates to plumbing fixtures. In addition, features such as an expanded laundry facility and a new business center for residents will be introduced. HVPG also plans to implement security upgrades throughout the property to ensure resident safety and peace of mind.

Securing Long-Term Affordability

Of particular importance in this acquisition is HVPG's commitment to maintaining affordability for its residents. The company has secured a renewed Housing and Urban Development (HUD) Project-Based Section 8 Housing Assistance Payment (HAP) contract, which covers 99% of the units within the complex. This agreement keeps resident rent capped at 30% of their household income for an additional 22 years. Furthermore, eligibility for residence is restricted to those earning no more than 50% of the Area Median Income (AMI), thereby ensuring that the housing remains accessible to those who need it most.

The preservation of this crucial housing asset has also benefited from a Payment in Lieu of Taxes (PILOT) agreement with the Township of Hempstead Industrial Development Agency (IDA). As noted by Frederick Parola, Executive Director of the IDA, such partnerships are vital for ensuring that tenants experience a revitalized, secure, and well-maintained community.

Supporting Existing Community Initiatives

HVPG recognizes that improving individual living conditions extends beyond physical living spaces. Their commitment to community programs is evident through collaborative efforts with local organizations. For instance, the PEACE Afterschool Program has served the 100 Terrace community for over 14 years, providing educational enrichment and youth employment opportunities. This commitment to education aligns seamlessly with HVPG's mission of enhancing quality of life for residents.

"We are proud to expand our footprint on Long Island and bring our preservation expertise to Hempstead," said Jason Bordainick, Co-Founder and Managing Partner at HVPG. He emphasized that 100 Terrace is not just about providing housing but about ensuring stability and opportunity for the community and working families for generations to come.

A Bright Future Ahead

Financed through a combination of equity from HVPG's Hudson Valley Preservation Fund and a Fannie Mae loan from KeyBank, the project positions HVPG as a cornerstone in the realm of affordable housing revitalization in New York. Collaborations with HUD and local authorities have been instrumental in structuring this preservation transaction, aiming to safeguard the quality of life for current and future residents.

In closing, as Hudson Valley Property Group continues its mission to preserve and enhance affordable housing across the nation, the 100 Terrace acquisition marks a significant step forward, not only expanding its operational footprint but significantly impacting the community in Hempstead, ensuring that affordable housing remains a foundational element for future generations.