HOUSTON – (Realty News Report) — New Hope Housing is developing two affordable housing communities in Houston, which will add 315 apartment units of shelter that will be more attainable for strained household budgets as housing costs rise.
Amegy Bank is suppling $50 million in financing for the construction effort by the non-profit organization.
Located in Houston’s Third Ward and Northline neighborhoods, the 180-unit NHH Gray and the 135-unit NHH Berry are both targeted to low- and moderate-income residents.
“Sixty percent of Houstonians are renters and more than half are cost-burdened, spending more than 30 percent of their income on housing. As rent prices have soared post pandemic, closing the affordability gap for low- and moderate-income Houstonians has never been more important,” said Joy Horak-Brown, New Hope Housing’s President and CEO. “New Hope Housing Gray and Berry will provide the foundation that families, individuals and seniors need to thrive.”
Demand for rental housing has been high in Houston and across the nation as home prices have escalated in recent years. Mortgage rates have rising sharply, now more than 7 percent – the highest mortgage rates in over 20 years.
With the housing affordability crisis, thousands of families have abandoned hopes of buying a house -marketed as “The American Dream” for years — and seek shelter in rental housing.
Rental rates increase as demand for apartments rises. In Houston, the average apartment rents for $1,280 a month, up 2.2 percent from $1,252 a year ago, according to a second quarter report from Colliers.
Amegy Bank’s specialized bankers, from the commercial real estate to nonprofit banking teams, collaborated across business lines to develop unique community development financing solutions to meet the specific needs of NHH for these two construction projects.
“The development of the New Hope Housing Gray and Berry affordable housing initiatives are key investments in the wellbeing of Houston’s community and economy,” said Ray Miller, Amegy Bank’s Real Estate Lending Team Lead. “We are honored to play a role in such significant projects that will create affordable and stable housing for Houstonians, thanks to the inspiring vision of New Hope Housing and our collaborative financing model.”
NHH Gray, 2604 Gray St., and NHH Berry, 706 Berry St., are scheduled to be completed in July 2025.
Breaking ground in October 2023, NHH Berry will feature 180 one-, two- and three-bedroom apartment homes while NHH Gray will feature 135 one-bedroom and two-bedroom apartment homes. Both complexes will host on-site Bezos Academy locations, providing free of charge Montessori-inspired preschool to residents’ children. Each unit will include amenities such as central air conditioning, a washer and dryer, modern kitchen appliances, energy star rated lighting and windows, and gathering spaces such as a community kitchen, fully furnished lounge, library, meeting and social service offices and more.
Since its inception in 1993, New Hope has provided affordable, permanent housing and essential support services for more than 13,000 people. The organization’s historic mission of offering single room occupancy (SRO) studio efficiency housing for the formerly homeless broadened in 2013 to include supportive housing for vulnerable families at NHH Reed. With the addition of two new communities serving working families and individuals — NHH Avenue J and NHH Savoy, New Hope has a portfolio of 11 properties in operation across Houston, with more in the pipeline.
Sept. 4, 2023 Realty News Report Copyright 2023
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Rendering courtesy of New Hope Housing.