Related Affordable and New Jersey Housing and Mortgage Finance Agency (NJHMFA) today announced the full rehabilitation of Holly House, a 3-story, 42-unit affordable apartment community for low-income families. The residential building consists of a mix of studio and one-bedroom units. When complete, Holly House will include new fixtures, appliances, flooring and lighting, as well as on-site laundry, on-site management, surface parking, solar panels and free WiFi.
Located at 100 Drury Lane, two blocks west of Main Street and adjacent to Asbury Park High School and the Culinary Education Center, Holly House was at risk of losing rental subsidy from U.S. Department of Housing and Urban Development (HUD), given the physical condition of the property and the pending expiration of the Section 8 contract. Related Affordable acquired the building, in partnership with LIHTC investor Hudson Housing Capital, and entered into a new 20-year Section 8 renewal contract with a plan to complete a comprehensive renovation.
“As one of the largest private developers of affordable housing in the United States, Related has been committed to providing and preserving quality housing for nearly five decades,” said David Pearson, senior vice president at Related Companies. “We are proud to partner with New Jersey Housing and Mortgage Finance Agency and look forward to the rehabilitation of Holly House for its residents.”
“In today’s challenging economy, it is important to provide access to safe and affordable housing for the people of New Jersey. These renovations will serve to significantly modernize these apartments, which will improve the quality of life for residents who live there and enhance the surrounding neighborhood,” said Charles A. Richman, NJHMFA executive director. “Equally important, this project preserves housing that is affordable to working families in the community.”
“New Jersey residents deserve to live in safe, quality homes, and I am pleased that the renovations at Holly House will allow 42 families to continue living in affordable apartments for years to come,” said Justin Scheid, HUD Newark field office director. “One of HUD’s top priorities is the preservation of affordable housing. HUD renewed the Section 8 contract for another 20 years, which allows low-income families to only pay a percentage of their income in rent. HUD will continue to ensure that these families live in decent, safe and sanitary housing.”
“Hudson Housing Capital is excited to partner with the Related Companies in the preservation and rehabilitation of this important community asset. Thanks to our LIHTC investor, Santander Bank, N.A., we were able to provide equity financing for Holly House during these challenging times,” said Sam Ganeshan, Hudson Housing Capital managing director.
The building and site will be upgraded with new windows, façade repairs, accessibility modifications and a reconfigured entrance into a new on-site management office. The property will remain livable throughout construction and Related Affordable plans to cover costs for residents to temporarily stay at a nearby hotel while renovations are happening in each apartment. All units will have set aside income limits of at or below 60% area median income (AMI).
Construction work includes payment of NJ state prevailing wage in alignment with New Jersey Housing and Mortgage Finance Agency requirements. Related Management Company, L.P. will provide management services and work with the new owner to build local partnerships to bring new programming and services to the property for residents.
About Related Companies:
Related Companies is a global real estate and lifestyle company defined by innovation and the most prominent privately-owned real estate firm in the United States with over $60 billion in assets owned or under development including the 28-acre Hudson Yards neighborhood on Manhattan’s West Side, The Grand and Related Santa Clara in California and The 78 in Chicago. Formed over 45 years ago, Related is one of the largest private owner of affordable housing and a fully-integrated, highly diversified industry leader with experience in virtually every aspect of design, development, acquisitions, management, finance, hospitality, sustainability, and sales. Related’s mixed-use, residential and commercial office properties have been consistently heralded for their placemaking vision – bringing together iconic design, arts and culture, dynamic programming, and innovative wellness programs. Headquartered in New York City, Related has offices and major developments in Boston, Chicago, Los Angeles, San Francisco, South Florida, Washington, D.C., Abu Dhabi and London, and boasts a team of approximately 4,000 professionals. Related was recently named to Fast Company Magazine’s list of the 50 Most Innovative Companies in the World. For more information about Related, please visit www.related.com.
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