Oct-5-06 Commissioner Levin Announces Funding For Affordable Housing
The funding will support the creation of 404 affordable rental housing units in seven communities throughout New Jersey, and the preservation of 53 units in three municipalities by extending affordability controls for an additional 45 years. These awards represent 9 percent federal tax credit allocations from the final cycle of 2006 and will serve to attract $74.5 million in investment capital.
“These investments represent housing opportunities that will make a difference in the lives of thousands of people, and in the future vitality of New Jersey,” Commissioner Levin said. “We are committed to providing quality, affordable housing for families and seniors as the foundation to improve our communities.”
The combined funding will be used to construct or preserve housing developments in Bloomfield, Bridgeton, Camden, Jersey City, Lawrence, Mantua, Morristown, Newark, Orange and West Orange.
“Both nonprofit and for-profit developers throughout the state were chosen for the Balanced Housing/Home Express and Tax Credit awards, in an effort to provide quality affordable housing opportunities for all of our hardworking families,” Executive Director Della Vecchia said.
The joint cooperation of DCA’s and HMFA’s financing programs represents an improved efficiency in providing funding to meet New Jersey’s affordable housing needs.
States are allocated low-income housing tax credits by the federal government on an annual per-capita basis. As the designated housing finance agency for the state of New Jersey, HMFA is responsible for the allocation of tax credits to qualified applicants and the monitoring of those projects for compliance with the Internal Revenue Code.
Federal Low Income Housing Tax Credits are awarded to developers planning to build new rental apartments or rehabilitate existing units for low-income households. Recipients become eligible to write off a percentage of their personal or corporate income on federal tax returns for a period of 10 years. The rental apartments must be reserved for low-income households for a period of 30 to 45 years. Construction completion for the developments is expected within 12 to 24 months.
DCA’s Neighborhood Preservation Balanced Housing Program is funded through a portion of the New Jersey Realty Transfer Tax receipts. The Home Express Program, created jointly between DCA and HMFA, allows HMFA to administer Balanced Housing funds on behalf of DCA for rental projects that are eligible for low-income housing tax credits pursuant to the federal low-income housing tax credit program.
No direct funding comes from the State Treasury for these programs. Please see attached Project Descriptions for more information.
CAMDEN COUNTYCamden: Carl Miller Homes is a HOPE VI project that is part of the Centreville Redevelopment Plan. It is a family development that will house a total of 88 tax credit units, including two non-income units for a live-in superintendent, management/maintenance and the provision of social services. The development will contain 20 one-bedroom units, 38 two-bedroom units, 26 three-bedroom units, and 2 four-bedroom units, within two- and three-story townhouse and side-by-side buildings. Developer: Michaels Development. This project will be awarded $1,748,249 through the LIHTC Program.
CUMBERLAND COUNTYBridgeton: Bridgeton Commons, the final phase of a large, HOPE VI development, is a family project that will consist of 23 low-income rental units. The project will house 8 two-bedroom units, 9 three-bedroom units, and 6 four-bedroom units. The development will provide a community building containing a leasing/management office, a maintenance shop and meeting room. Across the street form this facility will be a pocket park, which will contain a large tot-lot. Developer: Ingerman Affordable Housing, Inc. This project will be awarded $528,084 through the LIHTC program.
ESSEX COUNTYBloomfield, Orange, & West Orange: Essex Housing Preservation is a scattered-site preservation project that will consist of 53 low-income rental units, within 13 buildings, whose current deed restrictions have expired or will expire by the end of 2006. There will be 5 one-bedroom units, 19 two-bedroom units, 28 three-bedroom units, and 1 four-bedroom unit. Rehabilitation of these units will include the replacement of kitchens, baths, and heating systems. Social services for the project will include workshops on a variety of topics, based on the needs and interests of the residents. Developer: RPM Development. This project will be awarded $452, 447 through the LIHTC program.
Newark: Scudder Homes Family Rental is a HOPE VI, family development consisting of 58 tax credit rental units. This newly constructed project will house 26 two-bedroom units, 30 three-bedroom units, and 2 four-bedroom units, within 24 attached 2 and 3 story rowhouse and duplex buildings. Thirty-three of the units will be public housing units. The project is a component of an ongoing revitalization effort by the Housing Authority, and is located within the City’s designated redevelopment area. On-site parking will also be available to the residents of this development. Developer: Pennrose Properties. This project will be awarded $1,356,524 through the LIHTC program.
GLOUCESTER COUNTYMantua: Royal Oaks Apartments will contain 58 low-income rental units, within 5 buildings of townhouses over flats. There will be 14 one-bedroom units, 23 two-bedroom units, and 21 three-bedroom units. A freestanding, 2,000 square foot community center will be erected to house management offices along with multi-purpose facilities for resident activities. Within the community center, there will be a large room, which will be used by the residents for parties, events, lectures, health fairs, etc. There will also be a kitchen, bathrooms, a computer, an after-school playroom, along with areas for small groups and individual conferences. Developer: Community Investment Strategies. This project will be awarded $709,142 through the LIHTC program.
HUDSON COUNTYJersey City: A. Harry Moore Phase I, a.k.a Gloria Robinson Homes, is a HOPE VI project that involves the new construction of 2 three-story buildings containing 66 mixed-income rental units. The 66 units will consist of 6 one-bedroom units, 28 two-bedroom units, 26 three-bedroom units and 6 four-bedroom units. This is the first phase in the redevelopment of the obsolete A. Harry Moore apartment community. The townhouse-style construction will better reflect the surrounding neighborhood’s character of single-family homes. Developer: MBI Development Co. This project will be awarded $1,213,778 through the LIHTC Program.
Jersey City: Webb Apartments entails the new construction of a 5-story mixed-use building that will house 40 affordable rental units for families. Above the ground floor retail space, there will be four residential floors comprised of 16 one-bedroom units, 8 two-bedroom units, and 16 three-bedroom units. The project is located within the boundaries of the Martin Luther King Drive Redevelopment Plan. Developer: Genesis Jersey City Partners, LLC. This project will be awarded $812,112 through the LIHTC Program.