Gilman Housing Trust dba RuralEdge
Project: Parkview Apartments
RuralEdge found that some much needed affordable housing in Newport, Vermont, was at risk of losing its affordability. The Parkview Apartments, a 12-unit multifamily building, was facing the expiration of its existing HUD Housing Assistance Program (HAP) contract. The building had 10 units reserved for residents with incomes at or below 30% of area median income (AMI) ($13,500 for one person) and two units serving residents at or below 50% of AMI ($22,250 for one person). RuralEdge partnered with CHC to structure financing to purchase the building from local owners who were getting ready to retire.
The Newport, Vermont, area is part of the State of Vermont’s EB-5 investment activity area that allows an entry point for foreign national investors and their families to move to the US, thus driving up local speculation and housing costs. Newport has seen several condo conversions in the area over the past several years. Given the condition of the Parkview Apartments, they could easily be converted into condos with minimal investment. CHC’s $726,750 acquisition loan will allow RuralEdge to preserve affordability for the long-term in this high-cost area.
RuralEdge provides property management, homeownership, and real estate development services across the three counties that make up the Northeast Kingdom of Vermont: Caledonia, Essex, and Orleans. With a focus on sustainability and environmental impact, many RuralEdge properties are energy efficient, and residents are encouraged to become involved, with community gardens and composting at some units.