NEWPORT NEWS, Va., March 29, 2023 (GLOBE NEWSWIRE) -- CPP (Community Preservation Partners), a mission-driven affordable housing preservation developer, today announced that it has closed on City Line Apartments. This marks CPP’s third of similar building renovations in the state of Virginia.
Built in 1979, with its last renovation almost 20 years ago, the property will receive improvements in all 200 units, including new kitchen and bathroom appliances, new luxury vinyl plank (LVP) flooring and new HVAC units. The building will also undergo a complete roof replacement. Shared spaces will be renovated with a new computer room and community library. Expansive exterior renovations are planned, including the addition of a new playground, an outdoor fitness center, basketball court, BBQ area and community garden.
“This development is vital to the Newport News area, which is lacking in affordable options for working class and Section 8 housing residents,” said Anand Kannan, President at CPP. “This purchase and renovation will extend the affordability of the property’s 200 units for years to come.”
With sustainability top of mind, the project will meet a Home Energy Rating System of 80 (HERS80 rating) after the renovation.
“We believe that improving housing is the first step in transforming the lives of community members,” said Seth Gellis, Senior Vice President at CPP. “This is an existing tax credit community that will have a fresh 30-year affordability agreement on it due to this renovation. We are excited that City Line Apartments will continue to be rented to tenants who are at, or under, 50% of the area’s median income.”
The project’s Land Use Restrictive Agreement (LURA) will be in place for 30 years. The Housing Assistance Payments (HAP) contract was set to expire in 2025, but with the renovation the project will earn a new 20-year HAP contract. The project is part of the Low-Income Housing Tax Credit (LIHTC) program. Permanent financing will be provided by Redstone and the equity investor is PNC Bank.
CPP’s total development investment is expected to be approximately $57 million, with a purchase price of $30.1 million. Renovation costs are estimated at $55,000 per unit.
Construction is expected to last for 12 months and be completed in December 2023. CPP is working to ensure that impact on residents will be as minimal as possible. Paragon Construction is the General Contractor, with Ebersoldt + Associates serving as the architect.
About Community Preservation Partners
In 2004, Community Preservation Partners was established by our parent company, WNC & Associates, a national investor in affordable housing and community renewal initiatives. Since then, CPP has successfully acquired, developed, and rehabilitated more than 11,000 affordable multifamily and senior housing units nationwide. From the very beginning, they’ve done things differently. As more than a consultant or an investor, CPP is a true partner in every sense. By joining leading nonprofits and strategic partners, they can provide essential social services to residents, support neighborhood initiatives and transform multifamily affordable housing communities. Creativity, Performance, and Purpose are their core values and embody everything they do. Together they define A Different Way to Home for their excellent employees, partners, and communities. Visit https://www.cpp-housing.com/.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/d85041f6-c347-473e-96fa-32e1864076c5
