When its Department of Housing and Urban Development (HUD) Section 202 regulatory agreement expired in 2017, Grandview Terrace Apartments in Jersey City, New Jersey, was at risk of being converted to market-rate housing.
Hudson Valley Property Group (HVPG) stepped in to acquire the 283-unit, 16-story tower that serves seniors 62 and older in 2022.
HVPG worked with HUD and the Jersey City Housing Authority to structure a two-part financing plan and preservation strategy to renovate the building, secure new Section 8 subsidies for all units so residents pay no more than 30% for rent, avoid resident displacement, and secure the long-term affordability for the community.
“Our focus was really on preserving the affordable housing. We wanted to come up with a way to keep the residents in place—not just for the short term, but for the long term,” says Sheffin Joseph, associate director of acquisitions at HVPG. “We had to give them a safety net so they didn’t have to worry about displacement.”
Built in 1968, the property underwent significant renovations, including kitchen upgrades with new cabinetry, countertops, and stainless steel appliances; new flooring; and water-conserving fixtures.
A highlight for residents is a new sky lounge with a stretching room, a community room, a library, and a computer center with views of New York City.
The space is regularly used for resident events as well as health and wellness programs. The property hosts weekly mediation and exercise classes as well as free monthly medical screenings in partnership with Jersey City Medical Center. In addition, a comprehensive security and camera system was installed as well as free Wi-Fi in the common space.The $72.9 million acquisition and substantial rehab was financed with equity from HVPG’s second affordable housing fund and a construction loan that was then refinanced under the HUD Section 223(f) program.
