Located in the heart of downtown Camden’s Pyne Point neighborhood, the Northgate One Apartments represent a major milestone in the revitalization of affordable housing in Camden, thanks in part to pivotal financing provided by BlueHub Loan Fund.
Hudson Valley Property Group (HVPG) purchased the aging apartment complex and plans to update the 321-unit, 21-story family affordable housing building. The property, previously known as Northgate Apartments and originally built in 1963, is undergoing a full-scale renovation to enhance living conditions and ensure long-term affordability for residents. The project is a testament to the collaborative effort to preserve and improve accessible housing options for New Jersey residents.
This endeavor, supported by innovative New Jersey Economic Development Authority (NJEDA) tax credits, is poised to transform Northgate One Apartments into a modern, sustainable and inclusive community hub, marking a significant leap forward in urban redevelopment and affordable living solutions in New Jersey.
Access to affordable places to live is paramount for Camden residents, the majority of whom have very low incomes.
The property will also be subject to Low-Income Housing Tax Credits (LIHTC) income and rent restrictions through a 30-year compliance period, overseen by the New Jersey Housing and Mortgage Finance Agency (NJHMFA), which serves as the Section 8 Performance Based Contract Administrator (PBCA) for New Jersey and provides the LIHTC. Tenants must qualify at 60% of Area Median Income (AMI) to reside at the property, ensuring compliance with NJHMFA's oversight and adherence to federal and state regulations to maintain affordable housing standards.
In addition, 96.5% of units are subject to a new 20-year project-based Section 8 Housing Assistance Payments (HAP) contract, which makes the property affordable to very low- and extremely low incomes, while ensuring residents covered by this subsidy pay no more than 30% of their household income towards rent. Northgate One will be affordable for decades to come, and no current tenants will be displaced as a result of the preservation and rehabilitation process.
Northgate One is one of the first affordable housing preservation projects to leverage the new Aspire Program administered by NJEDA. The Aspire Program, established under the Economic Recovery Act of 2020, plays a crucial role in incentivizing strategic real estate projects in New Jersey. This initiative provides tax credits to fill funding gaps and promote community revitalization, especially in economically distressed areas, offering up to 45% of project costs in tax credits, which can increase to 60% for projects utilizing LIHTC. BlueHub Loan Fund served as the Aspire Program tax credit bridge lender for this project.
The neighborhood of Pyne Point is a vibrant blend of diverse cultures. "HVPG remains committed to transforming communities like Northgate into safe, modern homes and supportive environments for families, and we look forward to showcasing the positive impact our investments and capable team can have on residents and the broader community,” said Jason Bordainick, co-founder and managing partner of Hudson Valley Property Group.
