A collaborative revitalization partnership with NJEDA and NJHMFA
CAMDEN, NJ — Hudson Valley Property Group (HVPG) announced the acquisition of Northgate Apartments, a 321-unit, 21-story affordable housing building in Camden. The property is located at 433 North 7th St. in Camden.
“We are delighted to extend our partnership with the City of Camden, the US Department of Housing and Urban Development (HUD), the New Jersey Economic Development Authority (NJEDA), the Camden County Improvement Authority (CCIA), and the New Jersey Housing and Mortgage Finance Agency (NJHMFA) to enhance the affordability and overall quality of housing in Camden,” said Jason Bordainick, co-founder and managing partner of HVPG. “HVPG remains committed to transforming communities like Northgate into safe, modern homes and supportive environments for families, and we look forward to showcasing the positive impact our investments and capable team can have on residents and the broader community.”
The acquisition and property rehabilitation of Northgate is financed with a mix of federal low-income housing tax credits (LIHTC) funded by Enterprise, Aspire NJ state tax credits, and a HUD FHA 221d4 loan originated by PGIM). This endeavor represents one of the first affordable housing preservation projects to leverage the new Aspire tax credit program administered by NJEDA, which was established under law as part of the Economic Recovery Act of 2020 and provides tax credits to incentivize strategic real estate projects in New Jersey. The City of Camden also supported the project with a long-term PILOT Agreement which will be instrumental in the property’s future success.
The project received support from various partners, including the CCCIA and NJHMFA providing financing support, The Metro Company which acted as the tax credit consultant and Citizens Bank as the construction lender. Additionally, BlueHub Capital served as the Aspire lender.
To ensure the long-term affordability of the property, 96.5% of units are subject to a new 20-year project-based Section 8 HAP contract, which ensures units covered by this subsidy pay no more than 30% of their household income towards rent. The property will also be subject to LIHTC income restrictions through a thirty-year compliance period, and tenants must qualify at 60% of Area Median Income (AMI) to reside at the property. The new combined PILOT Agreement, HUD HAP contract and LIHTC Use Agreement ensure affordability for the property for decades to come, and no current tenants will be displaced as a result of the preservation and rehabilitation process.
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