Tredway, an affordable and mixed-income real estate developer that builds and preserves high-quality, high-opportunity housing, and LIHC Investment Group, one of the nation’s largest owners of affordable housing, recently announced the acquisition of Forest Hill House, a 100-unit senior-occupied apartment complex in Newark.
The joint venture will immediately begin redeveloping the property to encourage aging in place and enhance energy efficiency by investing upward of $20 million in improvements and upgrades.
As a result of the acquisition, the affordability agreement governing the property will be extended for another 30 years, at an income limit of 60% of area median income.
“We are excited to embark on this ambitious redevelopment, which will protect and improve homes at Forest Hill House for lower-income seniors, while keeping affordability intact,” Will Blodgett, founder and CEO of Tredway, said. “Not only does this project allow for the preservation of an important source of affordable housing for the city of Newark, it also provides an opportunity for seniors to live their lives and age independently in a home they can be proud of.
“A project of this magnitude requires public-private collaboration, and we are grateful for the support of HUD, NJHMFA, NJEDA, the city of Newark, Mayor Ras Baraka and Council Member Anibal Ramos Jr., and commend their commitment to uplifting longtime, elderly residents of Newark.”
“There is a vital need for affordable, high-quality homes for seniors across New Jersey, and we are proud to provide state-of-the art housing solutions that take into account the specific needs of older adults,” Andrew Gendron, principal, LIHC Investment Group, said. “The rehabilitation of the property, along with new amenities and comprehensive services for residents, underscores our commitment to helping vulnerable seniors access the types of homes and support they need to live comfortably and with dignity.”
The rehabilitation of the property includes new windows, air conditioning units and Energy Star appliances for all apartments. Kitchens and bathrooms will be fully renovated and upgraded for ADA accessibility. To maximize energy efficiency, the building’s roof and boilers will be replaced, an emergency generator installed and lighting will be converted to LED.
Residents will benefit from new amenities, including an on-site doctor’s office, a beauty salon and barbershop, an age-appropriate fitness and mobility room, free Wi-Fi and an upgraded security system. Additional services will be implemented based on resident feedback in cooperation with Rainbow Housing Assistance Corp.
The project is being financed with an FHA-insured Section 221d (4) permanent loan from Rockport Mortgage Corp. through New Jersey Housing & Mortgage Finance Agency conduit bond issuance, 4% Low-Income Housing Tax Credit equity provided by Regions Affordable Housing and Bank of New York Mellon, Aspire tax credits and owner equity. Affordable Housing Institute Inc. is the not-for-profit partner.
