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Refinancing Will Preserve Affordable Housing Complex in Cape May, NJ

"Cape May," pictured in September 2012, by Tori Behr. Used under Creative Commons 2.0 license via Flickr.com “Cape May,” pictured in September 2012, by Tori Behr. Used under Creative Commons 2.0 license via Flickr.com

CAPE MAY, NJ—The Catholic Diocese of Camden is partnering with MDG Design + Construction and Hudson Valley Property Group  to refinance Victorian Towers, a transaction that will include more than $8 million in capital improvements to the 205-unit senior housing development at 608 Washington Street in Cape May, NJ.

The refinancing will preserve the affordability of Victorian Towers for 20 more years, while renovations will provide necessary upgrades to the units and property.

“We couldn’t be more pleased to be able to make a significant investment in the improvement of Victorian Towers,” says James Reynolds, the executive director of Diocesan Housing Services Corporate of Camden, the Diocese’s housing agency. “Our partners at MDG and HVPG are consummate professionals and are helping us to further the work of the Church in advancing the interests of low- and moderate-income seniors and families in need throughout South Jersey.”

Originally constructed in 1973 to house low-income seniors, Victorian Towers is a six-story development containing 205 studio and one-bedroom apartments, with 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 new windows and a new Victorian-styled facade. Efficiency upgrades include new air conditioning units and water conservation measures like 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.

“We are excited to provide significant renovations that will improve the homes and lives of residents – and maintaining long-term affordability is a highlight of this project,” says Michael T. Rooney Sr., principal of MDG Design + Construction. “As MDG crosses the bridge into New Jersey for the first time, we are thrilled to partner with DHSC and HVPG to work to preserve high-quality, affordable housing for seniors.”

DHSC has managed Victorian Towers for decades and will continue to remain involved with the property for the long 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 post-renovation.

“We are proud to be partnering with the Diocese to further its mission in providing its low- to moderate- income 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,” says Jason Bordainick, managing partner and co-founder of Hudson Valley Property Group.

Upon completing the refinance and rehabilitation of Victorian Towers, 194 units will remain affordable through a 20-year Project-Based Rental Assistance 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 from the sale of four percent Low Income Housing Tax Credits.

DHSC and MDG/HVPG will serve as co-general partners on the project. This is the third joint venture between MDG and HVPG and their first in partnership with DHSC. MDG and HVPG previously completed the preservation and rehabilitation of two low-income HUD housing developments in Brooklyn and North Amityville, NY.

 

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