PIONEERING COMMUNITY PRESERVATION

AFFORDABLE & WORKFORCE HOUSING ACQUISITIONS

TABLE OF CONTENTS
ABOUT US 3
OUR STORY & TEAM 4-5
WHAT WE DO 6-7
ACQUISITIONS 8
FOCUS ON SUSTAINABILITY 9-11
PORTFOLIO 12-24
RECENT PRESS 25-35
ABOUT US
At Hudson Valley Property Group, we are acquiring,
preserving and elevating affordable and mixed income
housing in communities throughout the country. We invest
capital creatively and offer customized development services
to meet each property and partner’s unique needs.
HUDSON VALLEY PROPERTY GROUP: OUR STORY
We strive to be the next generation of affordable housing: an honest and committed team executing creative
financial solutions to preserve and elevate our nation’s aging supply of low-income and workforce housing.

Hudson Valley Property Group was founded in 2010 by childhood friends and business partners, Jason Bordainick and Andrew Cavaluzzi.
After observing blatant housing inefficiencies in their hometown of Rockland County, New York, Jason and Andy knew they could improve
conditions for families in need of quality affordable housing. As sons of educators, they felt a connection to the area’s public servants and
understood their invaluable contribution to the community. In the context of the mortgage crisis, the two embarked on a mission to use
their entrepreneurial experience, financial and real estate industry background, and clear compassion to fix the system. Jason and Andy
came together to build an organization that would have a lasting impact on their community. The solution-oriented organization would
enhance the vitality of the properties and communities they serve. Since its inception, the team’s unique backgrounds, tenacity and
mission-driven business approach have grown their portfolio across multiple states and to 3,500 units and growing.

Triple Bottom Line Business: A for profit company that aims to have big social impact and practices environmentally
sustainable development.
At Hudson Valley, we believe safe, healthy, and quality living environments should be available and affordable to everyone. Affordable
housing is the foundation to a community’s economic, social, and cultural vitality. Hudson Valley’s mission is to increase the supply of
quality affordable housing. Beyond renovating and preserving homes for residents, we enhance services and facilitate linkages to other
local resources.
JASON ANDREW
BORDAINICK CAVALUZZI
M A N A G I N G PA RT N E R & C O - F O U N D E R PA RT N E R & C O - F O U N D E R
Jason co-founded HVPG with a vision to create the preeminent housing Andy directs and oversees potential projects from property identification
preservation firm, improving upon the availability, quality, and affordability of through project development to successful building completion. Andy has been
housing across the country. A recognized industry leader, Jason applies his involved in real estate brokerage, investment, and development for the past
creativity, tenacity and business acumen towards building an impactful ten years. His diverse background in real estate has provided him with
organization that achieves outstanding results for its partners – both for-profit extensive experience to evaluate potential properties and execute successful
and non-profit, and the communities it serves. Jason leads the strategic direction outcomes. Andrew cultivates relationships with the municipalities and local
for the firm and ensures each project, partnership and investment is structured residents that are key to the success of any project. His ability to work
for success. Before founding HVPG, Jason founded and built the nation’s largest constructively with local, state and federal government officials on property
online marketplace for off campus housing which helps millions of students secure rehabilitation and acquisitions ensures a positive outcome for local residents,
housing each year. In his career, Jason has successfully executed over $1B of the government, and HVPG investors alike. Prior to co-founding HVPG, Andy
investments on behalf of private investors and corporations. He also previously was a developer leading several real estate rehab, new construction, and
worked in mergers & acquisitions and corporate management. Jason holds an MBA development projects as well as a successful entrepreneur in the fitness and
from Stanford’s Graduate School of Business and a BS in finance from the McIntire hospitality industries.
School of Commerce at the University of Virginia, where he was honored with the
Warwick Johnson Jr. award for academic achievement.
 WHAT WE DO

PRESERVATION
ACQUISITIONS PARTNERSHIPS
We actively acquire affordable, workforce We partner with a variety of not-for-profit
and mixed income properties throughout the owners of affordable housing in unique and
country. We are experienced with a variety flexible ways. Our aim is to provide resources
of executions to ensure certainty of closing and solutions in order to preserve and renovate
and optimal pricing for the seller. buildings to ensure top quality and performance.
Alignment on mission, while championing long
tern partnerships through a collaborative
approach, is our key to success.
OUR WORK IN FILM
PLEASE CLICK THE IMAGE BELOW TO VIEW VIDEO

Link to Nationswell website: http://nationswell.com/hudson-valley-property-group-video/

ACQUISITIONS CRITERIA & EXPERTISE
HVPG acquires HUD assisted, tax credit, affordable and workforce properties
throughout the country. Using conventional financing and/or Low Income Housing Tax
Credits, we have the capabilities to acquire large multi-state portfolios as well as
individual assets as small as 50 units.
We execute our transactions with both tax credits and private equity financing. We are
comfortable with a variety of unique and creative executions to ensure certainty of
closing and to optimize price for seller.

We have extensive experience with:

• HUD section 8
• HUD section 236
• HUD section 42 low-income housing tax credits
• NYS & NYC Mitchell Lama housing
• RAD conversions
• Rural development
• HUD section 202
• Mark-to-market and mark-up-to-market
restructuring
• Partnership conflict resolution
• Minimizing tax upon sale repercussions
• Creating value in unused development rights
FOCUS ON SUSTAINABILITY
HVPG utilizes best practices in sustainable and resource efficient
development, including:
• Ensuring that all property rehabs have a dedicated budget for
energy efficiency upgrades
• Selecting sustainable building materials & implementation of energy
conservation measures
• Engaging state regulatory agencies and energy consultants to
monitor project performance and energy savings
• Reducing landfill waste during construction by redirecting recyclable
materials back to the manufacturing process and re-using materials
where possible
• Minimizing water usage through the use of native plantings and water
conserving technology
• Educating the community of green building features
and strategies
 FOCUS ON SUSTAINABILITY
Marien-Heim Tower Case Study NFP PARTNERSHIPS BROOKLYN, NY 182 UNITS SENIORS

BEFORE: AFTER:
MARIEN-HEIM TOWER SCOPE OF WORK:
• Air sealing and weather-stripping
• Window and balcony door replacement
• New high efficiency boilers
• New dedicated, high efficiency domestic hot
water boilers
• Low-flow water fixtures
• New lighting throughout the building & hallways
• Energy Star appliance replacements BEFORE: AFTER:

HVPG Environmental Case Study: Marien Heim Tower, Brooklyn, NY

2014-2015 (pre- Aug 2015-Aug 2016
Delta % Decrease
rehab) (post-rehab)
Energy Usage
13,576 11,302 2,274 17%
(mmBTU)
Energy
$258,437 $208,724 $49,713 19%
Spending ($)
 FOCUS ON SUSTAINABILITY
Colt Arms Apartments Case Study ACQUISITION PATERSON, NJ 207 UNITS SENIORS

COLT ARMS SCOPE OF WORK:

• Solar panel roof
• New high efficiency boilers
• Upgraded air conditioning and
heating system
• Insulated roofing and windows
• Energy-star lighting and new
appliances
• Water-saving fixtures

HVPG Environmental Case Study: Colt Arms Apartments, Paterson, NJ

Jan 2015-Aug 2015 Jan 2017-Aug 2017
Delta % Decrease
(pre-rehab) (post-rehab)
Energy usage
2,062,095 1,025,717 1,036,378 50%
(kWh)
Natural gas
20,743 13,853 6,890 33%
(Therms)
Pre-rehab
Post-rehab
 PORTFOLIO

3,500 ~9,000 $600M

HOMES RESIDENTS DEVELOPMENT

PRESERVED SERVED COSTS
 NJ SECTION 8 PORTFOLIO
Project-based Section 8 PORTFOLIO
ACQUISITION VARIOUS, NJ 1,009 UNITS SENIORS & FAMILY

PORTFOLIO DESCRIPTION: HVPG EXECUTION: FINANCING AND SUBSIDY:

• Triangle Village, Paterson, NJ Hudson Valley Property Group LLC (HVPG) and The acquisition is the first phase of a long-term Red Stone was responsible for
Red Stone Companies, LLC, in joint venture preservation plan that will include thoughtful and securing the debt financing and
with Wheelock Street Capital, acquired 1,009 sustainable upgrades to the properties in the years to worked closely with HVPG to
• St. James Village, East Windsor, NJ units of New Jersey senior and family come. The transaction was financed with a significant assemble the capital stack for the
affordable housing located throughout private equity investment and a unique financing facility transaction. Wheelock Street
northern New Jersey. The seven properties are structured by Walker & Dunlop and Fannie Mae. The New Capital provided the majority of
• Orange Park Apartments, Orange, NJ subsidized through US Department of Housing Jersey-based property management company, Community the equity capital, with
and Urban Development project-based Section Realty Management, assumed operations while retaining a contributions from HVPG and RS.
8 contracts. majority of the existing management staff at each of the The debt was funded by utilizing a
• Old Bridge Rotary Senior Citizens, Old
sites. unique financing facility structured
Bridge, NJ
The former owner was a legacy owner that by Walker & Dunlop and Fannie
was looking to exit to the affordable housing This transaction demonstrates a creative financing Mae.
• Metuchen Senior Citizens, Metuchen, NJ space. The seller (who also owned a execution to preserve New Jersey’s aging supply of
management subsidiary that operated the affordable housing without relying on limited state public All seven of the properties receive
properties) wished to maximize sale proceeds, funds. It is estimated that the portfolio houses a total of rental subsidy through project-
• Grove Street, East Orange, NJ 2,500 residents. The municipalities where these properties based Section 8 contracts.
while also ensuring that a thoughtful transition
and post-disposition plan was implemented for reside have been supportive of the preservation of the
the existing onsite staff. portfolio. The joint venture plans to hold the properties
• Bethany Towers, Hazlet, NJ long-term and pursue renovations and sustainable
upgrades based on the physical needs at each of the sites.
 KEITH PLAZA & KELLY TOWERS
Mitchell Lama, Section 236, RAD conversion, project-based section 8
ACQUISITION BRONX, NY 611 UNITS FAMILY

PROJECT OBJECTIVES: HVPG EXECUTION: FINANCING AND SUBSIDY: SCOPE OF WORK:

Keith Plaza (30 stories, 311 units) and Kelly Towers (17 Hudson Valley Property Group partnered with Phoenix Realty Financing was provided by the City of New York, including Environmental: new appliances, electrical fixtures,
stories, 301 units) are located on Southern Boulevard Group to acquire and preserve the two properties. The the New York City Housing Development Corporation and GFI outlets, improved heating systems, new energy
in the Bronx, NY. Both properties were built in 1975 partnership was able to attract a significant private equity the New York City Department of Housing Preservation saving lighting and trash compactors
under the Mitchell Lama Housing Program restricted investment, as well as federal and New York City agency and Development. In addition, an equity investment was Safety: new building wide security system
to 125% AMI rents. Mitchell Lama workforce housing financing to make the project feasible. Keith and Kelly are an funded by Belveron Partners and the developers, Hudson Building exterior and grounds: extensive garage
properties are some of the most at-risk affordable ideal case study to demonstrate the success and importance Valley Property Group and Phoenix Realty Group. More repairs, landscaping and recreation area upgrades
housing properties in New York City. As mortgages of public-private partnerships to preserve aging workforce specifically, Keith Plaza and Kelly Towers were financed by Building interior: exhaustive lobby and entrance
mature on these properties, many owners elect to housing in New York City and beyond. approximately $40 million in tax-exempt recycled bonds renovations, new floors and painting
make them market rate or to sell to a market rate and an additional $7.7 million secured by 236 Mortgage Resident units: new sinks, cabinets, and countertops
RESULTS:
developer. Decoupling Interest Reduction Payments. The total in the kitchens; new vanities, shower bodies,
• Substantial $15.4M renovation improved the quality of
development costs surpassed $88 million and the lavatories, and tiling in the bathrooms; new electrical
life and safety of residents ($10M Keith, $5.4M Kelly)
The former owner was looking to exit the property, renovation costs exceeded $15 million. outlets; new doors
• The onsite staff was retained as third-party
but wanted to see the buildings preserved as management
workforce housing while also receiving optimal • Long-term affordability preserved utilizing the Rental
proceeds at the time of sale. Another priority of the Assistance Demonstration II (RAD II) program, which
former owners was that the existing management included the issuance of a new 20-year, Section 8
team remained in place as a third-party manager for Project-Based Rental Assistance (PBRA) contract
the new ownership. • Additional subsidy was secured for individual residents
through enhanced vouchers (or “sticky vouchers”)
 VILLA VICTORIA
Project-based Section 8
ACQUISITION NEWARK, NJ 194 UNITS FAMILY & SENIOR

PROJECT OBJECTIVES: HVPG EXECUTION: RESULTS:

Villa Victoria is a 194-unit, project-based Section Hudson Valley Property Group pursued a LIHTC- • Long-term affordability preserved for decades to come;
8 development located in Newark , NJ .5 miles financed acquisition of Villa Victoria. The secured by issuance of a new 20-year project-based HAP
from the Newark Broad Street light rail. The owner received a market based rent increase to contract issued by HUD
development is comprised of an 11 story high- support the project, along with a new HAP • Additional rental subsidy secured through mark-up-to-market
rise apartment building with 103 units and 9 low- contract. The team worked closely with local (tenant rents remained unchanged)
rise buildings containing an additional 91 units. representatives and the City of Newark to • Tax abatement secured in partnership with the City of
Hudson Valley Property Group (HVPG) acquired secure a tax abatement, or Payment in Lieu of Newark
the property in 2018 with the goal of preserving Taxes (PILOT), for the property as well. The • $6MM renovation prioritizing building modernization, energy
the units as low-income housing for Newark preservation project included a $6MM efficiency upgrades and resident quality of life improvements
families and seniors. The property required renovation of the property.
significant capital needs improvements and SCOPE OF WORK:
modernization renovations making it an ideal FINANCING AND SUBSIDY: • Environmental: energy-saving appliances in units, low
candidate for a low-income housing tax credit The acquisition of the property was financed flow plumbing fixtures, system upgrades (including
(LIHTC) preservation project. To ensure project through 4% Low Income Housing Tax Credits new boiler, ventilation and heater replacement)
feasibility, HVPG had to secure a property tax purchased by R4, and FHA 223f debt financing • Safety: units designated as ADA accessible, as well as
exemption from the City of Newark and a HUD originated by Walker & Dunlop. units for the hearing and visually impaired, fire alarm
mark-up-to-market (MU2M). system upgrade, building entry system/intercom
Photos: (left to right) Highrise building exterior; Main entrance of Villa Victoria; Aerial view of the development 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
• Resident units: kitchen and bathroom renovations,
balcony door replacement, new windows and unit
lighting, and painting in all units
 LOS TRES UNIDOS APARTMENTS
Project-based Section 8
NFP PARTNERSHIP NEW YORK, NY 135 UNITS FAMILY

PROJECT OBJECTIVES: HVPG EXECUTION: RESULTS:

Los Tres Unidos Apartments (Los Tres) is a 135-unit Hudson Valley Property Group (HVPG), in partnership with NCV • Long-term affordability preserved for decades to
low-income housing development located near Capital Partners and Belveron Partners, provided NERVE with come; secured by issuance of a new 20-year project-
Central Park in East Harlem, Manhattan. The the preservation expertise and equity investment to exercise based HAP contract issued by HUD
property is subsidized through a HUD project-based their ROFR and preserve the property. The team obtained • Additional rental subsidy secured through Mark-up-to-
Section 8 contract serving families with incomes at the support of the residents, the City of New York and from market (tenant rents remained unchanged)
or below 50% area median income (AMI). Los Tres HUD. • The City of New York approved a new Article XI tax
was originally developed by a partnership that abatement to support the long term financing of the
included not-for-profit co-owner, Nuevo El Barrio FINANCING AND SUBSIDY: project
para la Rehabilitación de Vivienda y The project was financed by substantial equity investments • Preference on some units has been reserved for
Economía “NERVE”. NERVE's consultant NCV Capital provided by Belveron Partners and Hudson Valley Property formerly homeless families that have become eligible
Partners (NCV) presented HVPG with the unique Group, and a Fannie Mae mortgage through Prudential. As a for housing
opportunity to partner with NERVE to exercise their result of the preservation endeavor, no residents were • Immediate capital needs will be addressed, as well as
“Right of First Refusal” (ROFR) to match a pending displaced and the property will remain affordable for decades energy efficiency upgrades and security enhancements
offer on the property. NERVE wanted to remain to come.
involved in ownership, but required investment and
preservation expertise from a partner.
 COLT ARMS APARTMENTS
Section 236, RAD conversion, project-based section 8
ACQUISITION PATERSON, NJ 207 UNITS SENIORS

PROJECT OBJECTIVES: HVPG EXECUTION: FINANCING AND SUBSIDY: SCOPE OF WORK:

Colt Arms Apartments is a 207-unit, 14- Hudson Valley Property Group acquired Colt Arms Apartments The Colt Arms acquisition required several Environmental: New boilers, upgraded air conditioning
story apartment building located on in January 2016 and executed a RAD conversion. It was one of sources of financing, including 4% low-income and heating system, insulated roofing and windows,
Godwin Street in Paterson, New Jersey, the first four preservation projects in the nation utilizing the housing tax credits and tax-exempt bonds energy-star lighting and new appliances, water-saving
and was built in 1975. The building had Rental Assistance Demonstration (RAD) PBRA Component 2 from the New Jersey Housing and Mortgage fixtures and faucets, solar paneled roof
aged significantly since its initial program (see related press). The property underwent a Finance Agency. R4 Capital syndicated the Safety: ADA- compliant sidewalk and curb
construction and major system upgrades significant renovation that completed in late 2016. credits to raise approximately $10 million in replacement, fire-rated and sound-insulated unit entry
were necessary to keep the property in equity, and Red Stone Tax Exempt Funding doors, common area ADA-compliant restroom, new
use. provided approximately $20.5 million in elevator cabs, new sprinkler system and upgraded fire
RESULTS:
private bond placement financing. The alarms, new building security system with 24-hour
• Substantial $12M turnaround renovation that improved development team decoupled the Section 236 surveillance
Colts Arms also had an expiring RAP the quality of life and safety of residents interest reduction payment, yielding a $1.9 Building exterior and grounds: New landscaping and
(Rental Assistance Program) contract that
• Long-term affordability preserved utilizing the Rental million interest reduction payment loan. outdoor seating areas including a renovated gazebo on
provided rental subsidy to many of the
Assistance Demonstration II (RAD II) program, which There are two tranches of debt—one against site
residents. Colt Arms’ affordability was at-
included the issuance of a new 20-year, Section 8 the mortgage on the property and another on
risk if it was not re-capitalized through Building interior: Renovated resident community
Project-Based Rental Assistance (PBRA) contract the decoupled IRP stream.
the RAD (Rental Assistance Demonstration) space and main lobby, new bio-based flooring in all
program prior to the RAP contract • Additional subsidy was secured for individual residents common areas, new signage and trash compactor
expiration. that were not previously covered under the former RAP
Resident units: New bio-based flooring and
contract
baseboards, new kitchen cabinetry, appliances and
• Property features a solar roof to reduce operating costs bathroom accessories, repaired ceilings and new
and provide a more sustainable energy solution for the painting; All units now have their own climate control
building’s future as an advanced feature of the new HVAC system
 THREE RIVERS APARTMENTS
Project-based Section 8
ACQUISITION MARIANNA, FL 100 UNITS FAMILY

PROJECT OBJECTIVES: HVPG EXECUTION: RESULTS:

Three Rivers Apartments (formerly known as Marianna Hudson Valley Property Group, in partnership • Substantial $4M renovation and beautification of the
Gardens) is located in the rural community of Marianna, with Royal American Development, acquired development, improved tenant quality of life, and
Florida on 6.5 acres. The development consists of nine, the property in 2015 completing a full additional common spaces made available to residents
two story block buildings containing 100 two and three- renovation of the site and preservation of its • Long-term affordability preserved
bedroom residential units, as well as two one-story block long-term affordability. Upon completion of • Currently 100% of the residents receive subsidy
structures that house the laundry, office and maintenance the tax credit rehab, 100% of the project through HUD
shop. Prior to HVPG’s involvement, Three Rivers was an serves residents earning less than 60% of Area
aging property that lacked air conditioning, had issues Median Income (AMI) and units have been set
FINANCING AND SUBSIDY:
with pest infestation, and dealt with crime and drug use aside for residents with development
The project was financed with 4% low income housing tax
on premises. disabilities and earning less than 40% of AMI.
credits and tax-exempt bonds issued by the Florida
Housing Financing Corporation, low-interest SAIL
financing, and developer equity.

SCOPE OF WORK:
Environmental: Energy saving appliances, upgraded
windows and insulation, energy star roof replacement
Safety: New camera security system throughout the
development, new fire alarm system, handrail and
walkway repair
Building exterior and grounds: New roofing, landscaping
and playground
Resident units: All units were gut rehabbed; New
flooring, kitchens, bathrooms, fixtures, lighting,
appliances, interior & exterior doors; New central air
conditioning throughout the buildings
 PLAZA AT AMITYVILLE
Project-based Section 8
ACQUISITION BABYLON, NY 50 UNITS SENIORS & FAMILY

PROJECT OBJECTIVES: HVPG EXECUTION: RESULTS: SCOPE OF WORK:

The Plaza at Amityille (formerly known as Hudson Valley Property Group, in partnership with • Substantial $1.75M renovation that Environmental: New energy efficient
Andpress Plaza Apartments) is a 50-unit garden MDG Design & Construction and Ken Oppenheimer, improved safety, security, and aesthetic appliances and lighting, water-saving
style multifamily development located in acquired the Plaza at Andpress in 2015. The existing quality of the development bathroom features
Babylon New York on Long Island. The property Section 8 HAP contract was renewed under the Mark • Long-term affordability preserved Safety: New hardwired smoke detectors in all
was originally placed in service in 1983. The up to Market program, extending the project based utilizing MU2M program to renew the units, new closed-circuit camera system on
Plaza at Amityville had been managed by GP subsidy for an additional 15 years while ensuring the project-based subsidy and HAP contract the property grounds, and upgraded lighting
partner Ken Oppenheimer for nearly thirty years. property remains financially sustainable for years to at the property at each door entry
Mr. Oppenheimer wanted to remain in place as come. Both the local IDA and the State HFA have Building exterior and grounds: New roofing
• Currently 98% of the residents receive
site manager and partner, while other original greeted the project enthusiastically, and the Town of and vinyl siding, renovated entryway to the
subsidy through HUD
partners were looking to exit. At the time of Babylon has provided a 12-year Payment in Lieu of site, resurfaced parking lot, new signage and
acquisition, the site had aged over its lifetime Taxes (“PILOT”) tax abatement. • 50 family and senior affordable housing
units remain in service in Suffolk new landscaping throughout the property
and was positioned to benefit from a re-
County, an area of Long Island with a Resident units: New storm doors on all units,
capitalization. FINANCING AND SUBSIDY: growing shortage of affordable housing new electric heating, new bathroom sinks,
The acquisition was funded with 4% as-of-right Low- options cabinetry, bathtub surrounds, new kitchen
Income Housing Tax Credits (“LIHTC”) from the New cabinetry and countertops, and repainting
York State Housing Finance Agency (“HFA”), and a
private placement of Tax Exempt Bonds from the
Babylon Industrial Development Agency (“IDA”).
 SODUS BENTON /
WILLIAMSON ORCHARD ESTATES I & II
Project-based Section 8, rural development
ACQUISITION WILLIAMSON, NY 207 UNITS FAMILY

PROJECT OBJECTIVES: HVPG EXECUTION: FINANCING AND SUBSIDY: SCOPE OF WORK:

Sodus Benton, Williamson Orchard Estate I Hudson Valley Property Group, in partnership The project was funded through a Environmental: New energy efficient
& II are located in the towns of Sodus and with CB-Emmanuel Realty LLC, acquired the combination of public and private funding appliances and lighting, attic and window
Williamson, New York outside of three properties in two separate transactions sources, including 4% low-income housing tax insulation to prevent weather intrusion, and
Rochester. The garden-style apartment in 2015. Tax credit renovations completed in credits and tax-exempt bonds through New water-saving bathroom features
complexes had aged over time. They are mid-2016. York State Housing Finance Agency (HFA). Safety: Replaced site lighting
located in a rural geography which made Additional funding was provided through the Building exterior and grounds: New siding
the preservation endeavor more Community Investment Fund (CIF), helping to and roofing, gutter repair, new landscaping
RESULTS:
challenging. fulfill their commitment to the preservation throughout the grounds, resurfaced parking
• Substantial $6.5M tenant-in-place of rural housing. The properties receive
renovation that improved energy lot, and new signage; Power door open
rental subsidy through project based Section feature for main entrance
efficiency of the properties and 8 contracts.
increased resident comfort during Resident units: New unity entry doors, new
extreme winters kitchen countertops, flooring and cabinets,
• Long-term affordability preserved new bathtubs, showers and bathroom
vanities, new electric heating system, and
new ventilation fans
 WESTMINSTER HOUSE
Project-based Section 8, HUD 202
NFP PARTNERSHIPS BALTIMORE, MD 383 UNITS SENIORS

HVPG SOLUTION: RESULTS:

Hudson Valley formed a partnership entity • Substantial $20M renovation at no out -of-pocket
with UPM that acquired the building and cost to the organization that will improve resident
provided an innovative solution that has: quality of life and reduce future operating costs the
enabled the essential renovation at no out- property
of-pocket cost to the organization, generated • Generated over a million dollars in proceeds that
proceeds that the organization can use to the organization could use to further its mission
further its mission, and preserved • No increase in tenant paid rents and 168 income -
affordability for hundreds of tenants without qualified residents received new tenant protection
any increase in tenant paid rents. UPM and vouchers
HVPG worked hand-in-hand to create a
• No tenants were displaced
thorough scope of work tailored to the
property’s needs, while also improving • UPM was heavily involved in the development of the
operations through increased subsidy, PILOT scope of work, and continues to provide excellent
PROJECT OBJECTIVES:
extension, and investment in building management for the building and its residents
Westminster House Apartments was put in service in 1965 and formerly owned by
a local, Baltimore-based not-for-profit organization, United Presbyterian systems.
Ministries (UPM). UPM was also the onsite manager of the building. The HUD 202
senior apartment complex is located in the historic Mount Vernon neighborhood FINANCING AND SUBSIDY: SCOPE OF WORK:
of Baltimore, and is open to seniors of 62 years and older. Westminster House The ~$40MM (total development costs) Environmental: New HVAC control system and new energy-star
provides many attractive amenities to residents including a library, lounge, project was funded by tax-exempt bonds appliances and lighting
solarium, private underground parking, convenience store, beauty salon, and issued by the Maryland Department of Safety: Addition of 16 new ADA units with ADA bathrooms, ADA
fitness center. Housing and Community Development handrails in hallways, ADA accessible restrooms, new smoke
(“DHCD”) and 4% as-of-right Low Income detectors and fire alarm system, new intercoms and wireless
The property had aged over its lifetime and was in need of a substantial Housing Tax Credits (“LIHTC”). Currently, emergency call system
renovation to resident units, as well as major building system upgrades. many residents receive rental subsidy through Building exterior and grounds: Roof replacement and exterior
Furthermore, many residents at the property were not receiving sufficient rental a variety of programs including Tenant and beautification
subsidy. UPM expressed interest in partnering with Hudson Valley Property Group Project based vouchers (HUD 202 HAP
Building interior: New windows and shades, new automatic
to complete a tax-credit redevelopment of the property while retaining long- contract). Hudson Valley was able to secure
sliding doors at entry of lobby, new painting and flooring,
term involvement and management. tenant protection vouchers for 168 additional
upgraded elevator cab finishes
residents that income-qualified but did not
previously receive subsidy through the Resident units: New kitchen cabinets and countertops, new
project-based contract. carpeting and bathroom floor tiles, painting and new blinds,
new bathroom and kitchen fixtures
 MARIEN-HEIM TOWER
Mitchell Lama, Section 236, RAD conversion, project-based section 8 NFP PARTNERSHIPS BROOKLYN, NY 182 UNITS SENIORS

PROJECT OBJECTIVES: HVPG SOLUTION: FINANCING AND SUBSIDY: SCOPE OF WORK:

Marien-Heim Tower, Inc., a Brooklyn-based non- An innovative solution was devised by Hudson Valley- This $53MM (total development costs) project was Environmental: updated lighting, Energy-Star
profit, has owned and operated the 182-unit MDG, a development partnership between Hudson funded by tax-exempt bonds issued by the New York appliances, energy-efficient boilers, burners,
senior building for more than 40 years. The Valley Property Group and MDG Design + Construction State Housing Finance Agency (HFA), and utilized as- hot water heaters, toilets, and shower heads
property is located on Ocean Parkway in the LLC. Hudson Valley – MDG formed a joint venture with of-right 4% Low Income Housing Tax Credits (LIHTC). Safety: new security system, balcony
Midwood neighborhood of Brooklyn, NY. By 2014, the not-for-profit organization which allowed them to The property participates in HUD’s Rental Assistance structural reinforcement, new intercoms, and
The property was in need of an extensive remain involved long-term as owner and manager while Demonstration (RAD) program in connection with emergency pull cords
renovation but lacked the necessary financial strengthening their financial capabilities. the new financing, and also benefits from Building exterior and grounds: new
capability and expertise. decoupling the remaining Interest Reduction landscaping, benches, tables, skylights,
RESULTS:
Payments (IRP) from the underlying mortgage so as windows, fencing, and façade restoration
• Substantial $16MM renovation at no out-of-pocket to generate additional proceeds for the project.
Marien-Heim Tower, Inc. expressed interest in cost to the organization Building interior: Renovated lobby, laundry
partnering with Hudson Valley Property Group to • Generated several million dollars in proceeds that room and main entrance featuring automatic
Hudson Valley-MDG was also the first developer in
complete a tax-credit redevelopment of the the organization could use to further its mission doors
New York State to utilize an innovative “Back-to-
property while retaining long-term involvement Resident units: new kitchens, bathrooms,
• No increase in tenant paid rents Back” financing structure in collaboration with HFA
and management. Given MHT’s expiring Section cabinets, sinks, flooring, doors, and new paint
• No tenants were displaced and Citibank that decreased transactions costs. This
236 contract and limited cash flow, the property
• Marien-Heim Tower, Inc. was heavily involved in financing execution allowed the non-profit
required a robust development/financing
the development of the scope of work, and organization to retain long-term involvement as
solution to prevent further aging of the building
continues to provide excellent management for owner and maanger throughout and after LIHTC
and to preserve the units as affordable for its
the building and its residents compliance.
senior residents and the community.
 VICTORIAN TOWERS
Section 236, RAD conversion, project-based section 8
NFP PARTNERSHIPS CAPE MAY, NJ 205 UNITS SENIORS

HVPG SOLUTION: RESULTS:

PROJECT OBJECTIVES:
Hudson Valley Property Group and MDG Design + • Substantial $8M renovation at no out-of-pocket cost to
Victorian Towers Apartments has been
Construction (Hudson Valley-MDG) formed a the organization that will improve resident quality of
in service for over forty years. It was
partnership entity with DHSC that acquired the life and reduce future operating costs at the property
originally developed by the Diocesan
Housing Services of the Catholic Diocese building and provided an innovative solution that • Long-term affordability preserved utilizing the Rental
of Camden (DHSC). This not-for-profit has: enabled the essential renovation at no out- Assistance Demonstration II (RAD II) program, which
organization has owned and managed of-pocket cost to the organization, generated included the issuance of a new 20-year, Section 8
the property since its initial proceeds that the organization can use to further Project-Based Rental Assistance (PBRA) contract
construction. The property is an age its mission, and preserved affordability for • Generated proceeds that the Diocese can use to
restricted apartment complex for low- hundreds of tenants without any increase in further its mission
income seniors located in Cape May, tenant paid rents through a RAD PBRA • No increase in tenant paid rents and no residents were
New Jersey. Component 2 conversion. Hudson Valley and the displaced
Diocese worked hand-in-hand to create a
• DHSC was heavily involved in the development of the
thorough scope of work tailored to the
The property was in need of scope of work, and continues to provide excellent
property’s needs, while also improving
renovations, as well as ADA compliance management for the building and its residents
operations through increased subsidy, PILOT
upgrades. It received subsidy through a extension, investment in building systems and
Rental Assistance Payment (RAP) ADA compliance measures. SCOPE OF WORK:
contract that was nearing the end of its Environmental: Energy efficiency retrofit; water
term. DHSC wanted to renovate the conservation measures including low flow toilets shower
building while preserving its FINANCING AND SUBSIDY:
heads and faucets
affordability through a Rental Assistance Total development costs for this preservation
endeavor were $24M. The project utilized the Building exterior and grounds: professionally designed
Demonstration (RAD) conversion. The
NJHMFA Conduit Bond Program, equity generated new Victorian-style façade with decorative gas street
Diocese also wanted to remain involved
from the sale of 4% Low Income Housing Tax lamps lining the side walk
long-term as part-owner and manager.
The organization sought the expertise of Credits, and a tax abatement from the City of Building interior: Redesign of lobby featuring a seating
a LIHTC development team and partner Cape May. Upon completing the refinance and area and grand faux fireplace
to execute this project. rehabilitation of Victorian Towers, 56 units will Resident units: Installation of new windows that are more
remain affordable through a new 20-year conducive to senior living (easy open and close), creation
project-based Section 8 Housing Assistance of 10 fully ADA accessible units and several additional units
Payments (HAP) contract, and the remaining for the hearing and visually impaired
units will remain affordable through a 20-year
Project-Based Rental Assistance (PBRA)
agreement.
 BETHEL GARDENS
Section 236, RAD conversion, project-based section 8
NFP PARTNERSHIPS HAGERSTOWN, MD 94 UNITS FAMILY

PROJECT OBJECTIVES: HVPG SOLUTION: RESULTS:

Bethel Gardens Apartments was put in service in HVPG formed a partnership entity with Bethel Corp • Substantial $8M renovation at no out-of-pocket cost to the organization that will improve
1975 and formerly owned by a local, Hagerstown- that acquired the building and provided an innovative resident quality of life and reduce future operating costs at the property
based not-for-profit organization, The Bethel solution that has: enabled the essential renovation at • Long-term affordability preserved utilizing the Rental Assistance Demonstration II (RAD II)
Corporation (Bethel Corp). The property is self- no out-of-pocket cost to the organization, generated program, which included the issuance of a new 20-year, Section 8 Project-Based Rental
managed by Bethel Corp staff. Bethel Gardens is proceeds that the organization can use to further its Assistance (PBRA) contract
a 94-unit garden style apartment complex that mission, and preserved affordability for hundreds of
• Generated proceeds that Bethel Corp can use to further its mission.
previously received subsidy through a Rental tenants without any increase in tenant paid rents
Assistance Payment (RAP) contract that was through a RAD PBRA Component 2 conversion. Bethel • No increase in tenant paid rents and no residents were displaced
originally issued in conjunction with a Section Corp and Hudson Valley worked hand-in-hand to • Bethel Corp was heavily involved in the development of the scope of work, and continues to
236 mortgage. create a thorough scope of work tailored to the provide excellent management for the building and its residents
property’s needs, while also improving operations
The expiration of the RAP contract was fast through increased subsidy, PILOT extension, and
approaching in early 2016, and Bethel Gardens’ investment in building systems. SCOPE OF WORK:
affordability was at-risk if it was not re- Environmental: New water-saving plumbing system, weather stripping of doors and windows, new
capitalized through the RAD (Rental Assistance FINANCING AND SUBSIDY: LED lighting, upgraded heating system and split air conditioning, programmable thermostats, high-
Demonstration) program prior to the RAP Total development costs for this preservation efficiency boilers, low-flow faucets, and new energy-star appliances and exhaust fans
contract expiration. Bethel Corp did not have endeavor were $18.5M. The project secured $6.2M in Safety: New and repaired accessible ramps, ADA compliant bathrooms and improved ADA
experience with Low Income Housing Tax FHA insured debt and Maryland CDA provided compliance on site, additional site lighting and upgraded security system throughout the property
Credits, and wanted to work with an experienced additional support through its Rental Housing Works
developer team that had the financial expertise Program. The development team also decoupled the Building exterior and grounds: Brick repair and
to ensure that the RAD conversion was properly Section 236 interest reduction payment to procure replacement, drainage improvements, repaired
executed. Bethel Corp expressed interest in additional funding for the project. Residents at unit terraces and railings, repaired pedestrian
partnering with Hudson Valley Property Group to Bethel Gardens now receive rental subsidy through a walkways throughout the site
complete the re-capitalization and renovation of new 20-year, Section 8 Project-Based Rental Building interior: Redesigned lobby at community
the property while retaining long-term Assistance (PBRA) contract. center and management office, renovated
involvement and management. restrooms in community center, staircase repairs
throughout the buildings
Resident units: New kitchen cabinets, sinks and
counter tops, new bathroom vanity cabinets, sinks
and counter tops, new flooring, interior doors and
painting
PRESS
EAST HARLEM TENANTS WIN $60M AFFORDABILITY DEAL
February 13, 2018 – New York, NY– A $60 million funding package will “When Robert Anazagasti of NERVE contacted NCV and
expressed his desire to exercise NERVE’s Right of First Refusal
allow developers to preserve the affordable Los Tres Unidos apartments to purchase Los Tres Unidos, I thought it would be very
in East Harlem. challenging to raise the necessary capital given the 30-day
time frame as permitted under the agreement. However, by
A partnership between Nuevo El barrio para la Rehabilitacion de la tapping into NCV’s network of investors we were able to find
the perfect partners in Hudson Valley Property Group and
Vivienda y la Economia, (NERVE), NCV Capital Partners (NCV), Hudson Belveron to pull this off. The real winners are the tenants of
Valley Property Group (HVPG) and Belveron Partners (Belveron) Los Tres Unidos who will continue to live in high quality
announced plan for the 135-unit multifamily development on 112th Street. affordable housing in the emerging neighborhood of El Barrio
Equity investments were provided by Belveron and HVPG along with a (East Harlem) as the project will remain affordable for the
foreseeable future,” stated Keith Gordon, Managing Partner
Fannie Mae mortgage through Prudential.
of NCV Capital Partners.

The property remains subject to its U.S. Department of Housing and Urban
Development (HUD) Housing Assistance Payment contract, which allows
tenants to pay only 30 percent of their monthly income towards rent. The
new owner, a NERVE-NCV-HVPG partnership, plans to keep the property
affordable for the long-term.

The NERVE organization was formed in 1975 and was one of the original
developers of Los Tres Unidos. In 2017, NERVE exercised its right-of-first-
refusal (ROFR) when its partner endeavored to sell. NERVE brought in new
partners, NCV, HVPG, and Belveron for immediate equity and acumen to
match the competing offer and secure the property for a January 2018
closing.
LINK TO FULL ARTICLE
 $8 MILLION PROJECT MAINTAINS AFFORDABLE HOUSING FOR SENIORS IN CAPE MAY
November 21, 2017 – Cape May, NJ – The Diocesan Housing Services Corporation of the Diocese of Camden, Inc.
(DHSC), MDG Design + Construction, LLC, and Hudson Valley Property Group (HVPG), announce the closing of
Victorian Towers, a refinancing and renovation project that will result in the investment of more than $8 million in
capital improvements to this 205-unit senior housing development located at 608 Washington Street in Cape May,
New Jersey. The refinancing will preserve the affordability of Victorian Towers for 20 additional years while
renovations will provide necessary upgrades to the units and property.

Originally constructed in 1973 to house low-income seniors, Victorian Towers is a six-story development containing
205 studio and one-bedroom apartments as well as 82 parking spaces located near shopping, medical, and public
transit services. Renovations will include improvements to the units; a redesigned lobby with a seating area; and a
complete overhaul of over 2,000 square feet of community facilities. Exterior work includes the installation of easily
opened and closed windows and a new Victorian-styled facade. Efficiency upgrades include new AC units and water
conservation measures such as the installation of low-flow toilets, shower heads, and faucet aerators. The scope of
work also involves the creation of 10 fully accessible units designed in accordance with the Americans with
Disabilities Act, including several units for the hearing and visually impaired.

DHSC has managed Victorian Towers for decades and will continue to remain involved with the property for the long
“We couldn’t be more pleased to be able to
term to continue serving its residents and the Cape May Community. As development partners, MDG and HVPG will
bring substantial financing and development resources to the project, and will continue to be a partner of DHSC make a significant investment in the
post-renovation. improvement of Victorian Towers,” said James
Reynolds, the Executive Director of DHSC.
“We are proud to be partnering with the Diocese to further its mission in providing its low- to moderate- income
“Our partners at MDG and HVPG are
earning Cape May residents with high-quality affordable housing. We are grateful to NJHMFA and the HUD RAD
program for providing the programs and support to make this project a success,” commented Jason Bordainick, consummate professionals and are helping us
Managing Partner and Co-Founder of Hudson Valley Property Group. to further the work of the Church in advancing
the interests of low- and moderate-income
Upon completing the refinance and rehabilitation of Victorian Towers, 194 units will remain affordable through a 20-
seniors and families in need throughout South
year Project-Based Rental Assistance (PBRA) agreement, while the balance of the units will remain affordable
through the HUD Section 236 program. The project utilizes the NJHMFA Conduit Bond Program, equity generated Jersey.”
from the sale of 4% Low Income Housing Tax Credits.
LINK TO FULL ARTICLE
HVPG, PARTNERS & NEW YORK CITY CELEBRATE COMPLETION OF 613-UNIT
MITCHELL LAMA HOUSING RENOVATION
May 12, 2017 – Hudson Valley Property Group (HVPG), Phoenix Realty Group (PRG), and Belveron Partners are
pleased to announce the completion of the $14 million renovation project for Keith Plaza and Kelly Towers,
located in the Bronx, New York. Councilman of the 15th District, Ritchie Torres, HDC Chief Operating Officer &
General Counsel, Richard Froehlich, Assistant Commissioner, Division of Housing Supervision, Julie Walpert, and
HUD Deputy Regional Administrator of New York and New Jersey, Mirza Orriols, joined the development team at
the ribbon cutting ceremony on Friday, May 12, 2017 at 11am.

“The extensive rehabilitation and preservation of more than 600 units of housing at Keith Plaza and Kelly Towers
demonstrates the successful public and private partnership needed to protect the affordability and quality of our
critical Mitchell-Lama housing stock,” said HDC President, Eric Enderlin. “I would like to acknowledge and thank
our many partners at HUD, HPD, Hudson Valley, Phoenix Realty Group, and Belveron Partners for all their hard
work to preserve this vital affordable housing for The Bronx and New York City.”

“Our preservation work is safeguarding the affordability of homes and neighborhoods, and ensuring the quality of our city’s critical infrastructure – housing – for
generations to come,” said HPD Commissioner Maria Torres-Springer. “Preserving the remaining stock of Mitchell-Lama housing is an important component of the
housing plan, and this investment is paying off at developments like Keith Plaza and Kelly Towers. HPD thanks HDC, Hudson Valley Property Group, and Phoenix Realty
Group for bringing much-needed improvements and the security of extended affordability to more than 600 families.”

The acquisition, preservation and renovation of Keith Plaza and Kelly Towers provided a unique and innovative financing solution to prevent the loss of 613 units of
workforce and affordable housing from New York City’s housing stock. Keith Plaza is one of the early preservation projects in the nation utilizing the Rental Assistance
Demonstration II (RAD II) program, which included the issuance of a new 20-year, Section 8 Project-Based Rental Assistance (PBRA) contract.

Both properties were built in 1975 under the Mitchell Lama Housing Program restricted to 125% AMI rents. Mitchell Lama workforce housing properties are some of
the most at-risk affordable housing properties in New York City. As mortgages mature on these properties, many owners elect to make them market rate or to sell to a
market rate developer. The preservation of Keith and Kelly ensures that these properties will remain quality, affordable housing in the Bronx community for decades to
come.

“These important preservation projects will ensure that working class families and retired seniors who reside here have a quality, affordable place to call home for years
to come. We plan to follow the City’s lead and continue to work to preserve affordable housing throughout the five boroughs.” Jason Bordainick, Managing Partner,
Hudson Valley Property Group.
Financing was provided by the City of New York, including the New York City Housing Development Corporation and the
New York City Department of Housing Preservation and Development, in addition to an equity investment provided by
Belveron Partners and the developers Hudson Valley Property Group and Phoenix Realty Group. More specifically, Keith
Plaza and Kelly Towers were financed by approximately $40 million in tax-exempt recycled bonds and an additional $7.7
million secured by 236 Mortgage Decoupling Interest Reduction Payments.

Keith Plaza, a 311-unit, 30 story building located at 2475 Southern Boulevard, and Kelly Towers, a 302-unit pair of 17-
story buildings located across the street at 2375 and 2405 Southern Boulevard, are 99% occupied and provide homes for
both low and moderate income working families and seniors. There is a lengthy waiting list to secure a unit at both of
these properties.

Both properties are centrally located in a rapidly redeveloping area of the Bronx, near Fordham University, St. Barnabas
Hospital, the Bronx Zoo and the New York Botanical Gardens. PRG and HVPG acquired the properties in December of
2015 with the intention of preserving them as affordable workforce housing for the long-term. The buildings were
renovated over the over the course of 2016 and 2017.

“Today Keith Plaza joins nearly 25,000 affordable units nationwide renovated through HUD’s Rental Assistance
Demonstration, with nearly 10,000 of those located in New York State,” said Mirza Orriols, HUD Deputy Regional
Administrator for New York and New Jersey. “RAD has served as a lifeline for multifamily properties in need of
refinance and repair, preserving long-term affordability and providing residents with the stable, quality housing we know
is a gateway to opportunity.”

The total development cost surpassed $88 million and the renovation cost exceeded $14 million. Key upgrades consisted
of common area and unit renovations to improve resident comfort and safety. The common area renovations included
extensive repairs to the parking garage, upgrades to the exterior landscaping and recreation areas, renovation of the
lobby and building entrances, new flooring and painting in all common areas, a new trash compactor and a new security
system. The unit renovations included new appliances, electrical fixtures, sinks, cabinets, and countertops in the
kitchens, as well as new vanities, lavatories and GFI outlets in the bathrooms. Each apartment also received new
electrical panels and new door hardware. Significant energy efficiency enhancements were also included in the project
scope such as improved heating systems and new lighting.

LINK TO FULL ARTICLE

 HUDSON VALLEY PROPERTY GROUP ACQUIRES 1,009-UNIT PORTFOLIO
Feb. 2016 – Hudson Valley Property Group (HVPG) has acquired 1,009 affordable housing units
throughout northern New Jersey. Located in the towns of East Orange, Hazlet, Metuchen, Old Bridge,
Orange, Paterson, and Windsor, the seven family and senior housing properties are subsidized
through project-based Sec. 8 contracts. It is estimated the developments house 2,500 residents.

The deal, which is valued at more than $180 million, is the latest transaction by HVPG, a New York
City–based affordable housing preservation firm. The company partnered on the deal with Red
Stone Cos. and Wheelock Street Capital. Red Stone was responsible for securing the debt financing
and worked closely with HVPG to assemble the capital stack for the transaction. Wheelock Street
Capital provided the majority of the equity capital. The debt was funded by utilizing a financing
facility structured by Walker & Dunlop and Fannie Mae. The portfolio was owned by Kline Enterprises
and formerly managed by First National Properties.

“The previous owners built an impressive organization and team providing much-needed affordable housing throughout New Jersey,” said Jason
Bordainick, Managing Partner of HVPG, in a statement. “We are excited to have the opportunity to carry on their legacy, and to preserve these properties
for decades to come.”

The joint venture plans to hold the properties long term and pursue renovations and sustainable upgrades on the properties.
“We are especially excited to have leveraged our relationship with Walker & Dunlop and Fannie Mae to structure and participate in a flexible and
multiple-party debt/equity capital stack to maximize the opportunity on this acquisition and preservation of over 1,000 affordable housing units,” said
Brian Renzi, managing director of Red Stone.

The New Jersey–based property management company, Community Realty Management, assumed operations while retaining a majority of the existing
management staff at each of the sites. The portfolio was listed and brokered by SVN AFFORDABLE | Levental Realty, and the transaction was led by
managing director Gene Levental and senior advisor Jamie Renzenbrink. The law firms of Nixon Peabody, Berman Indictor, and Goodwin Procter
represented the joint venture in the transaction. (Photo: Metuchen Senior Citizens, Metuchen NJ)
LINK TO FULL ARTICLE
MARIEN HEIM TOWER RIBBON CUTTING: HVPG CELEBRATES WITH BROOKLYN NOT-
FOR-PROFIT OWNER
October 6, 2016 - Brooklyn, NY – Today, the U.S. Department of Housing and Urban Development (HUD) and the New York State
Homes and Community Renewal (HCR) joined residents and development partners MDG Design + Construction (MDG), Hudson
Valley Property Group (HVPG), and Marien-Heim Tower Associates LP to celebrate the renovation of Marien-Heim Tower, a 181-
unit affordable development for low-income seniors aged 62 and older. Marien-Heim Tower, a Mitchell-Lama development in
the Midwood section of Brooklyn, recently completed a nearly $53 million state financed and federally assisted rehabilitation
project to preserve long-term affordability.

Marien-Heim Tower was built in 1975 using a HUD Section 236 loan guarantee, and contained a mix of 132 studios and 49 one-
bedroom apartments. Over 40 years later, the building was in need of capital maintenance and upgrades, and Marien-Heim
Tower Associates worked with MDG and HVPG to secure funding through HCR to finance the renovations while preserving its
affordability for low-income seniors. The development leveraged HUD’s Rental Assistance Demonstration (RAD), which
facilitated the $52.7 million acquisition and rehab project, and included $16 million in hard construction costs. The RAD program
restricts residents’ rent to no more than 30% of their income while providing financing for required renovations.

“Working hand-in-hand with not-for-profit owners on transformative projects that give residents a much nicer, more
comfortable place to call home is at the core of what we do. We are thankful for the good stewardship of the agencies—NYSHCR
and HUD—and the very dedicated Marien-Heim staff for making the project such a great success,” Jason Bordainick, Managing
Partner, Hudson Valley Property Group.

“The board and staff of Marien-Heim Tower are grateful for the partnership we have developed with Hudson Valley Property
Group and MDG Design + Construction,” said Robert J. Walsh, President and Chairman of the Board of Marien-Heim Tower. “It
was the answer to our years-long search to find a way to do much needed renovations of our property without abandoning our
century-long mission to provide safe, secure, and affordable housing for older adults in Brooklyn. Every prior proposal we
received would have involved our not-for-profit organization receiving a lot of money through the sale of the property and in
turn losing our mission and involvement in the ongoing life of the Marien-Heim Tower.”
LINK TO FULL ARTICLE
AHF RECOGNIZES INDUSTRY CATALYSTS
Oct. 2016 – Six individuals 40 and younger named AHF’s 2016 Young Leaders.

LINK TO FULL ARTICLE

RAD HELPS REPOSITION STRUGGLING PROPERTY
BEFORE: AFTER:
Colt Arms Apartments was heading in the wrong direction. “The property was spiraling down,” says Jason
Bordainick, co-founder and managing partner of HVPG. “If it ended up continuing in that direction, people would
have been displaced because of obsolescence of the property over time.”

The critical piece of preserving the property has been to help residents by “project-basing” the apartments
through the RAD conversion, says Bordainick. “The majority of residents were not subsidized,” he says. “As a
result of the RAD program, effectively all of the residents who are income-qualified received project-based
assistance, which lowered the amount of money that the tenants had to pay out of pocket.”

Most residents will now pay just 30% of their income toward rent. Under the RAD conversion, 154 units have
PBRA through the Department of Housing and Urban Development. The New Jersey Department of Community
Affairs provides Sec. 8 project-based vouchers for an additional 52 units. The mix allows HVPG to accommodate
different residents and not displace anyone who has been living at Colt Arms. PBRA contracts help owners like
HVPG to address deferred maintenance and long-term affordability of privately assisted housing stock. They offer
longer-term, 20-year contracts instead of the typical 15-year project-based vouchers, and they are made directly
with HUD rather than going through public housing authorities.

The Colt Arms deal required several sources of financing, including 4% low-income housing tax credits and tax-
exempt bonds from the New Jersey Housing and Mortgage Finance Agency. R4 Capital syndicated the credits to
raise approximately $10 million in equity, and Red Stone Tax Exempt Funding did a private placement to purchase
the bonds, providing approximately $20.5 million, including a $1.9 million interest reduction payment loan. The
development team also had to decouple the Sec. 236 interest reduction payment. There are two tranches of
debt—one against the mortgage on the property and another on the decoupled IRP stream, which had about
eight more years left, says Bordainick.

“We spent a lot of time and money in advance of closing to execute a variety of tests, third-party reports, and
meetings with tenants to ensure that we had the right budget and scope for the preservation work,” he says.

LINK TO FULL ARTICLE

Affordable Housing News, “Contributing to Housing Through Renovation”, Summer 2015.
THANK YOU C O N TA C T: A L E X C O L E M A N
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