Hudson Valley Property Group Expands Affordable Housing Portfolio in Boston

Hudson Valley Property Group Expands Affordable Housing Initiatives in Boston

Hudson Valley Property Group (HVPG), a key player in the preservation of affordable housing nationwide, recently announced an exciting new chapter for their portfolio with the acquisition of two properties in Dorchester, Boston. This significant move marks HVPG's first venture into the Massachusetts affordable housing market, adding 133 family units to their growing New England base.

The newly acquired properties, Boston Bay and Hope Bay, are situated within close proximity to each other, featuring 20 buildings constructed between 1890 and 1920. Located at 205 Magnolia Street for Boston Bay and 5 Norwell Street for Hope Bay, these structures not only contribute to the historical backdrop of the area but also symbolize HVPG's commitment to preserving affordable housing in challenging markets. The acquisition cost is estimated at approximately $52.5 million, financed through a Fannie Mae loan from KeyBank.

As part of HVPG’s comprehensive strategy, the company plans to invest around $6.4 million in renovations for the new properties. Each family unit will receive an upgrade of approximately $48,000, which will cover essential improvements such as modernized kitchens and bathrooms with energy-efficient appliances and water-saving fixtures. Additionally, common areas will see enhancements, alongside upgrades to safety and security across both sites with the installation of LED lighting in shared spaces.

Jason Bordainick, Co-Founder and Managing Partner of HVPG, commented on the significance of this acquisition, stating, "We are proud to bring HVPG's preservation platform to Boston and Massachusetts. Boston Bay and Hope Bay represent an opportunity to preserve critical affordable housing in one of the nation’s most supply-constrained markets. Our investment will ensure that 133 families can continue to call Dorchester home while benefiting from modernized living spaces and enhanced amenities."

A cornerstone of this initiative is a partnership with the U.S. Department of Housing and Urban Development (HUD) that has resulted in new Project-Based Section 8 HAP contracts that cover 100% of the units leased to income-qualified families. Under these contracts, rental payments are capped at 30% of household income, effectively extending the affordability of these units for an additional 27 to 31 years, depending on the property.

Other major enhancements to resident life will include HVPG’s Community Enhancement Program. This initiative focuses on improving security and support services for residents. The plan includes the installation of security cameras, enhanced access control systems, and ongoing security patrols to ensure resident safety. Further, HVPG is partnering with Pinata, allowing residents to access renter’s insurance and credit reporting services, which can assist in building their credit history through timely payment of rent.

To ensure seamless transition and management for the residents, HVPG has chosen UHM Properties to oversee property management at both sites. This decision reinforces their commitment to maintaining quality services for current and future residents.

This strategic acquisition not only amplifies HVPG's presence in the Northeast but also underscores their mission of preserving affordable housing in high-cost markets. Presently, HVPG operates across 13 states, managing over 16,300 housing units nationwide. Gene Levental, Managing Director at SVN Affordable, emphasized the transaction's significance, remarking on the competitive bidding process that led to Hudson Valley’s selection as the new property owner.

In a nutshell, HVPG's acquisition of Boston Bay and Hope Bay not only embodies a strategic business move but also reinforces their ongoing commitment to improving the quality of life for families through sustained affordable housing initiatives. As the city of Boston seeks to address its housing challenges, partnerships like these serve as a beacon of hope for residents seeking stability and comfort in their homes.