K&R Preservation, a New York City-based multi-family housing development firm owned and operated by its CEO, Brian Raddock, announced the acquisition and rehabilitation of two affordable rental properties located in the City of Hudson, Columbia County, New York.
In addition to acquiring the Providence Hall and Schuyler Court Apartments, located respectively at 119 Columbia Street and 20 Columbia Street, K&R will rehabilitate all of the properties’ 152 units, consisting of 100 senior units, 50 multifamily Section 8 units, and two manager units.
The planned 12-month rehabilitation will be approximately $45,000 per unit, or $6.75 million total. The properties will receive significant upgrades, with the repair and installation of new siding for the townhomes, new generators and compactor systems, and new common area flooring. Repairs will also include milling, striping and resurfacing the parking lots.
Individual units will be upgraded with new kitchen cabinets, appliances and sinks, countertops, new energy efficient lighting, new, energy efficient windows throughout, and new energy efficient HVAC systems. Both sites will receive significant building upgrades with new boilers, replacement of all windows, the repair and installation of new siding, new generators and compactor systems and new common area flooring.
All rehabilitation work will be completed with tenants in place. During the day contractors will have access to units and perform the needed work. Upon completion of the scheduled rehabilitation work, the project will provide comparable or better quality housing than other housing in the market area.
The apartments are located directly in downtown Hudson and benefit from easy access to shops, medical offices and parks. The community boasts excellent public transportation and nearby major highways. The Hudson Amtrak station is also within walking distance from both sites.
Mr. Raddock said, “Development in this region has increased dramatically within recent years. Many new developments are moving forward as a result of the excellent regional higher education institutions and the benefit of Hudson’s proximity to the State Capital of Albany and rapid commuter access to New York City. Both of these major advantages have helped local communities in the region in providing jobs and opportunities to their residents.”
The purchase and financing of Providence Hall and Schuyler Apartments was funded through the use of the New York State Housing Finance Agency’s Multifamily Preservation Program Direct Subsidy. In addition, both projects currently receive a Federal Section 8 subsidy through a project-based Housing Assistance Payments (HAP) contract, which will be renewed.
The highly complex financing solution combines the properties in a single transaction, transferring the Section 8 “mark-to-market” (MTM) use restrictions to a different property in the K&R portfolio. The project will also benefit from a renewed Payment in Lieu of Taxes (PILOT) agreement to stabilize the developer’s payments to the municipality and ensure that these projects are not put in jeopardy due to unpredictable tax increases.
Sam Richman, K&R Director of Real Estate, said, “With a limited supply of affordable housing in Hudson and very high demand for housing in general in the region, this project will preserve affordability and provide a long-term benefit to the community.”
All 150 revenue units at Providence Hall and Schuyler Court will be set aside for tenants earning no more than 60% of the Area Median Income (AMI).
