Newton Town Centre Senior Residences Will Provide 65 Affordable Rentals for Seniors and a Mixed-Use Gateway to Historic Downtown District
NEWTON, NJ – New Jersey Housing and Mortgage Finance Agency (HMFA) Executive Director Anthony L. Marchetta today joined local officials and community leaders to celebrate the groundbreaking for Newton Town Centre Senior Residences, which will provide 65 affordable rental housing units for seniors in downtown Newton, Sussex County. Five units will be set aside for seniors with special needs. The community will transform the parking lot at the corner of Spring Street and Union Place into a mixed-use gateway to the town. RPM Development Group is the developer.
Fronting Spring Street, Newton Towne Centre Senior Residences will be housed in a brand new, state-of-the-art, four-story building designed to include approximately 1,400 square feet of commercial space at the corner of Spring Street and Union Place. The project will complement existing retail options while contributing to the area’s revitalization.
“The HMFA is happy to provide the capital financing for the construction of this mixed-use community which will provide quality affordable housing opportunities for Sussex County seniors who enjoy and appreciate Newton’s quaint, historic setting,” said HMFA Executive Director Anthony L. Marchetta. “Newton Town Centre Senior Residences is one more prime example of HMFA’s continued mission to provide safe, permanent, affordable housing in New Jersey, while, at the same time contributing in a positive way to downtown revitalization.”
Designed to reflect the historic character of downtown Newton, Newton Town Centre Senior Residences will comprise 62 one-bedroom and three two-bedroom apartments that will be affordable to seniors at up to 60% of area median income. Each apartment will be equipped with stainless steel Energy STAR appliances, high-efficiency heating and cooling systems and sustainable building material. The building is designed to achieve the highest LEED standards. On-site parking spaces will be provided.
Amenities include a rooftop terrace in the rear of the building and a beautiful senior center spanning more than 2,200 square feet, accessible to all Newton senior groups. The terrace is open to residents of Newton Town Centre. The community room will serve both the residents and the greater Newton senior community via a partnership between RPM Management and the Town Manager’s office. The center’s community room, with public restrooms and a kitchenette, is designed to accommodate large groups and a wide range of events. Senior groups are invited to schedule meetings and book the space through the Newtown Business Administrator's office in conjunction with RPM's property management staff. Residents enjoy close proximity to neighborhood services, restaurants, employment, public transportation, entertainment, medical facilities, and outdoor public spaces.
“Affordable housing is a critical element for the success in our rural communities,” said USDA Rural Development New Jersey State Director Howard Henderson. “This project is the first 538 Guaranteed Multi-Family Housing ‘new construction’ for New Jersey USDA Rural Development. When completed, this complex will consist of 65 senior apartment units in Sussex County. These blended partnerships help make projects like this possible for rural communities throughout the Garden State,” said Henderson.
The USDA538 program has never been used to finance a new construction project in the State of New Jersey. This is the first ground-up construction project that will use this program’s financing.
The Town of Newton was established in 1751 and has served as the county seat since 1761. Spanning just 3.1 square miles, Newton boasts a population of nearly 8,000. Route 206 and Route 94 are the two major highways that intersect at the town’s center. A variety of sports and outdoor activities as well as music, art, and cultural opportunities abound. The town is the home of the Sussex County Arts & Heritage Council, the official arts and heritage organization in the county, as well as a variety of art galleries. The newly reopened Newton Theatre on Spring Street and the Sussex County Community College Performing Arts Center both offer seasonal performances of music, dance, and comedy from national and international artists and students.
The HMFA, an affiliate of the New Jersey Department of Community Affairs (DCA), awarded RPM the extremely competitive 9% federal Low Income Housing Tax Credits which will generate more than $12.9 million in private equity. Total development cost for the project is $15.6 million. Additional external financing included a permanent loan from the United States Department of Agriculture (USDA) for $2.1 million; $45,000 in Municipal Funds; and $50,000 in Affordable Housing Trust Funds.
The approximately $15.6 million development cost of this community provides affordable housing opportunities for New Jersey seniors and special needs residents, but will continue to have a positive economic impact on the Sussex County locale. HMFA estimates that Newton Town Centre Senior Residences will generate approximately $23 million in one-time economic output, defined as the total value of industry production, such as sales and business revenues. During construction, the project will support approximately 138 direct and indirect/induced full-time equivalent jobs, and generate approximately $843,000 in state and local taxes. When completed, the project will continue to add value to the community by providing more than $2.5 million in ongoing economic output, 15 direct and indirect/induced full-time equivalent jobs, and more than $145,000 in state and local taxes annually.
Economic Impact Analysis figures were estimated using multipliers derived from a 2013 study entitled “Economic and Fiscal Impacts of the New Jersey Housing and Mortgage Finance Agency’s Investment in Affordable Housing,” conducted by HR&A Advisors, Inc., a real estate and economic development consulting firm.
Founded in 1986, RPM Development Group is one of the leading developers of affordable housing in New Jersey with a goal to provide quality housing while aiming to improve neighborhoods.
For more information on HMFA programs, please call 1-800-NJHOUSE or (609) 278-7400, or visit www.njhousing.gov.