Development News for Newburgh, New York

Penrose Housing Partners Outlines Major Renovation and Affordability Plan for Kenney Apartments

Penrose Housing Partners, a subsidiary of Contour Housing Partners, presented plans for the acquisition and renovation of the Kenney apartments. The project involves an investment of approximately $90 million for both the Bourne and Kenney properties, with an estimated $250,000 per unit for renovations. The acquisition is expected to close in September, followed by an 18-month renovation period. Key aspects include substantial unit and common area improvements, preservation of long-term affordability through Low-Income Housing Tax Credits (LIHTC), which will extend affordability for 40 years, and new rent-regulated leases. Penrose will replace current management in late August or early September and will establish an on-site management presence. The renovations will include replacing boilers and HVAC systems with individual electric heating/cooling/hot water, updating kitchens and bathrooms, improving common areas like the management office into a community room, adding a playground, and enhancing security with cameras and lighting. Relocation for residents during renovations will be managed through hospitality suites, with all costs covered by the project. Penrose also plans to partner with the Newburgh Housing Authority for project-based vouchers to assist residents with rental assistance, although the total number of vouchers is limited. Protections for existing residents include the Uniform Relocation Act, ensuring no displacement for those below 60% AMI, and an income averaging election to allow higher-income residents to stay. Future meetings will discuss design, finishes, and logistics, including individual meetings for income recertification and lease signing.