Westchester Firm to Purchase Affordable Housing Complexes in Hudson, NY
A Westchester-based firm that specializes in renovating apartments is reportedly in final talks to purchase two major affordable housing complexes in Hudson, New York. K & R Preservations plans to acquire the 100-unit Providence Hall and the 50-unit Schuyler Court, both of which predominantly rent to tenants using Section 8 housing vouchers, the federal program that assists low-income families in the private housing market.
In Hudson, where housing prices have skyrocketed, new landlords have tended to demand that tenants be cleared out prior to a sale so units can be renovated and rented at much higher prices. However, K & R Preservations has promised not to displace tenants during the renovations, and K & R spokesman Richard Edmonds confirmed that the firm’s usual construction is “more in the way of upgrades than renovations” and that “these apartments will be much nicer” after the renovation.
The planned renovations will include all-new interiors, windows, and kitchen appliances, and Schuyler Court will also get new siding on its exterior. According to Edmonds, renovations will occur during the day, during which time tenants would have to clear out of their apartments, but they could still access other parts of the building. Tenants would be back in their apartments every evening.
Schuyler Court and Providence Hall to Undergo Upgrades and Maintain Affordable Housing Section 8 Protections
While it is too early to say if rents would change, Edmonds confirmed that tenants would continue to receive the protections of the Section 8 program and that the units would be protected from conversion to the market rate. In the federal program, voucher holders must pay 30 percent of their income towards rent, but the rest is covered as long as the unit is within the fair market rate for the community. All landlords must accept Section 8 vouchers, though Section 8 tenants can rarely afford units above the area’s fair market value. Landlords can raise rents on units held by Section 8 tenants, but the increases must first be approved by the local housing authority, which manages the vouchers and public housing in a city.
K & R, which is owned and operated by Francine Kellman and Brian Raddock, has acquired and renovated more than 4,000 units in the tri-state area. Its projects in New York are generally downstate but include the acquisition of two senior housing complexes in Kingston: the Alexander Yosman Apartments and the Governor Clinton Apartments in Kingston, according to the company’s portfolio. The firm requested and received tax breaks for its renovations to the Kingston buildings, but it is unclear if the company will be seeking local tax breaks for the Hudson project.