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Pennrose and the Housing Authority of the City of Paterson Break Ground on a New Affordable Family Housing Complex
July 2, 2013
Paterson, NJ. – July 2, 2013 – Pennrose and the Housing Authority of the City of Paterson (HACP) broke ground on the third phase of The Heritage at Alexander Hamilton, an affordable family housing community, on Wednesday, June 26th. Phase III includes the development of an additional 50 mixed-finance, tax credit rental units. After Phase III is finished in February 2014, the property will undergo one final stage of development and upon completion have a total of 205 units. Leasing for Phase III is scheduled to begin in November.
In addition to the residential development, Pennrose and the HACP will demolish the existing community center to make room for a new community center and infrastructure of streets, sewers, utilities, parking, sidewalks and storm water management and detention systems. The community center will consist of a 16,000 sq. ft. building for management and social services offices, a maintenance facility, community room with kitchen, computer room, fitness center and more.
The development is not only important to the local neighborhood, but also has a profound effect on the city of Paterson as a whole. The property will replace a crime and drug ridden housing project that was dangerous and unhealthy for its previous residents as well as residents in the surrounding communities.
“Pennrose is privileged to partner with the HACP on this important next step in the revitalization of The Heritage at Alexander Hamilton, and we’re excited about the positive impact this property will have in Paterson,” said Tim Henkel, Senior Vice President of Pennrose.
The property will include six one-bedroom, 31 two-bedroom, 11 three-bedroom and two four-bedroom units available for families below 60% of the Area Median Income. Each unit will be well appointed with a host of amenities including a washer and dryer, ceramic tiled bathrooms, plush wall-to-wall carpeting, and more. At least 5% of units will also be wheelchair accessible and equipped to accommodate hearing and vision-impaired residents.
The $22 million development is being financed with $11.7 million in 4% tax exempt bonds from Capital One, $10.6 million in Hope VI funds, $1.5 million in Replacement Housing Factor funds from the HACP, $8.1 million in LIHTC equity syndicated by Hudson Housing Capital, $1.3 million from pledged developer fees, $550,000 from private permanent financing from Capital One and $238,738 in HOME funds from the City of Paterson.
“As a local bank, Capital One recognizes the need for quality, affordable housing and the role that housing will play in revitalizing this community,” said Desiree Francis, senior vice president, Community Development Finance for Capital One Bank. “That is why we are proud to serve as the lead bank in the redevelopment of The Heritage at Alexander Hamilton Phase III and to support Pennrose and HACP with more than $12 million in financing.”