FOR IMMEDIATE RELEASE: Thursday, September 07, 2017

 

Award Is Largest Single Allotment of Low Income Housing Tax Credits since Program Began in New Jersey in 1986

Trenton, NJ – The New Jersey Housing and Mortgage Finance Agency (HMFA) awarded Low Income Housing Tax Credits (LIHTC) to 29 projects across the state to fund affordable housing for working families, senior citizens, and residents with special needs. 

The projects, which span 14 counties and provide for 2,178 housing units, were awarded $39.8 million in competitive 9% LIHTC awards in the largest single announcement of tax credits since the program began in the state in 1986. 

The tax credits, which were announced by Governor Christie on August 25 during a public event in Woodbridge, Middlesex County, will generate approximately $378 million in private equity to build the housing units, which have a total development cost of nearly $549 million. 

Of the total planned units, 1,245 of them will be affordable for families earning below 60 percent of the Area Median Income (including 88 units set aside for the homeless), 423 of the units will be affordable for seniors at least 55 years old (including 30 units set aside for the homeless), and another 314 will be affordable for individuals and families with special needs. The affordable units must be reserved for low-income households for a period of 30 to 45 years. The remaining 196 housing units will be market rate.  

“This most recent round of tax credit awards demonstrates that New Jersey is taking full advantage of the Low Income Housing Tax Credits program, which has been a successful tool in the state for creating affordable housing,” said New Jersey Department of Community Affairs Commissioner Charles A. Richman, who also serves as Chairman of the HMFA. "Through these credits, the State is able to leverage funding and expand housing opportunities that will positively impact the lives of working families, seniors and special needs residents, all of whom are of limited financial means.” 

The HMFA estimates that these tax credit awards will result in more than $870 million in one-time economic output, defined as the total value of industry production, such as sales and business revenues. During construction, the projects will produce more than 5,200 full-time jobs and approximately $31.8 million in state and local taxes. Once completed, the projects will support approximately $97 million in economic output, 549 full-time jobs, and approximately $5.5 million in state and local taxes annually. 

“We are proud of our efforts through the Low Income Housing Tax Credits program to create affordable housing in areas that offer higher opportunities for our residents," said HMFA Executive Director Anthony L. Marchetta. “HMFA’s work to broaden the impact of these affordable housing tax credits across the state has opened doors to thousands of residents, not only improving their lives, but the greater community as well.” 

Federal LIHTCs are awarded to developers to build new rental apartments or rehabilitate existing rental units for low-income households. Typically, the tax credits are sold to investors, who then provide private equity to fund construction. In return, the investors receive a dollar for dollar reduction on their federal tax returns for a period of ten years. 

One of the most effective features of the LIHTC program is each state’s ability to craft its own allocation plan and define the criteria for awarding tax credits. New Jersey has one of the country’s most innovative LIHTC programs. Since 2013, HMFA has incentivized construction of low- and moderate-income housing in areas of low poverty and with proximity to job centers, public mass transit and high performing school districts. 

Reports by the U.S. Department of Housing and Urban Development and the Joint Center for Housing Studies at Harvard University have recognized New Jersey’s efforts to utilize its LIHTC allocation plan as a tool to decrease economic segregation through housing location. Also, HMFA’s program was hailed in a 2017 report by NJ Future, which said the changes could “serve as a model for other states interested in similarly directing their allocation of affordable-housing tax credits.” 

Please see the following charts for additional information on the projects awarded tax credits in the latest round. 

For more information on HMFA programs, visit www.njhousing.gov. 

 

 

LIHTC AWARD TOTALS

(FAMILY, SENIOR, SUPPORTIVE HOUSING AND MIXED-INCOME)

 

CYCLE

# OF PROJECTS

UNITS

TAX CREDIT AWARDS

TAX CREDIT EQUITY

TOTAL DEVELOPMENT COSTS

FAMILY

14

1,007

$19,837,444

$188,468,865

$255,072,339

SENIOR

6

423

$7,594,364

$72,139,243

$89,098,368

SUPPORTIVE HOUSING

5

314

$6,382,466

$60,629,282

$84,616,536

MIXED INCOME

4

434

$5,991,310

$56,911,753

$120,434,052

TOTALS

29

2,178

$39,805,584

$378,149,143

$549,211,295

 

FAMILY CYCLE AWARDS:

 

PROJECT NAME

SPONSOR

COUNTY

MUNICIPALITY

UNITS

Branch Village Townhomes - CNI Phase I

Michaels Development

Camden

Camden

72　　

Bridgeton Villas Phase II

Winn Companies

Cumberland

Bridgeton

56

Camp Kilmer Phase A

Pennrose Properties

Middlesex

Edison

86

Centerton Road Family Housing

Volunteers of America DV

Burlington

Mount Laurel

103

The Place at Plainsboro

Community Investment Strategies

Middlesex

Plainsboro

71

Willows at Whitehouse Station

Ingerman

Hunterdon

Readington Twp.

72

Dover Veterans

Pennrose Properties

Morris

Dover

68

Hilltop Residences (White Rock)

RPM Development

Essex

North Caldwell

50

Willows at Annandale Village

Ingerman

Hunterdon

Clinton Twp.

66

Jacob’s Landing Phase II

TRF Development/ BCM Affordable Housing

Middlesex

Woodbridge

60

Clifton Main Mews II

Regan Development

Passaic

Clifton

92

Brittin Village

Volunteers of America DV

Camden

Pennsauken

66

Rivergrove Apartments

Eastern Pacific & Gateway Action Partnership

Cumberland

Bridgeton

68

Page Homes

Conifer Realty, LLC

Mercer

Trenton

77

 

MIXED-INCOME CYCLE AWARDS:

 

PROJECT NAME

SPONSOR

COUNTY

MUNICIPALITY

UNITS

Somerset Square

RPM Development

Somerset

Franklin

151

Valley Road

Alpert Group

Essex

West Orange

100

Jackson Green

RPM Development

Hudson

Jersey City

99

City Hall Apartments

Urban Builders/Lettire/ Adenah Bayoh

Essex

Newark

84

 

SENIOR CYCLE AWARDS:

 

PROJECT NAME

SPONSOR

COUNTY

MUNICIPALITY

UNITS

Birchwood at Cranbury

Ingerman Development

Middlesex

Cranbury

66

1721 Springdale Road

Pennrose Properties, LLC

Camden

Cherry Hill

80

Fair Lawn Senior Housing

Penwal/Madeline/ Bergen County United Way

Bergen

Fair Lawn

85

Cinnaminson Senior Housing

MEND/ Conifer Realty

Burlington

Cinnaminson

54

Stonegate at St. Stephens Phase II

Diocesan Housing Services Corporation of the Diocese of Camden

Camden

Pennsauken

68

Winslow Cross Creek Phase IV

Eastern Pacific Development

Camden

Winslow Twp.

70

 

SUPPORTIVE HOUSING CYCLE AWARDS:

 

PROJECT NAME

SPONSOR

COUNTY

MUNICIPALITY

UNITS

Freedom Village at West Windsor

Project Freedom Inc.

Mercer

West Windsor

72

Freedom Village by the Lake at Gibbsboro

Project Freedom Inc.

Camden

Gibbsboro

72

Valley Brook Village Phase II

Affordable Housing and Services Collaborative, Peabody Properties and Windover Veterans

Somerset

Basking Ridge

50

E-Port Family Homes

E-Town Housing & Community Development Corp. and Genesis Companies

Union

Elizabeth

60

Somerset Brownstones

Better Tomorrows/ Michaels Development

Essex

Newark

60

 

CONTACT:

Tammori Petty
Emike Omogbai
(609) 292-6055