October 31, 2018 - Federal Funds Awarded to Five New Jersey Projects Dedicated to Affordable Housing in New Jersey

 FOR IMMEDIATE RELEASE: Wednesday, October 31, 2018

Organizations Will Receive Funding to Develop Rental Units for Persons with Special Needs

TRENTON, NJ – The New Jersey Department of Community Affairs (DCA) today announced the recipients of the 2018 national Housing Trust Fund (HTF) grants. Five New Jersey organizations were awarded $3.1 million in total to create rental housing for extremely low-income individuals and families with special needs. Funding for the housing units comes from Housing Trust Fund (HTF) dollars the State receives from the U.S. Department of Housing and Urban Development (HUD).

“The projects that were selected and awarded funds by DCA will help some of our most vulnerable citizens find high quality, safe housing,” said Lt. Governor Sheila Y. Oliver, Commissioner of DCA. “Providing affordable housing to low-income persons with special needs is a critical part of the equation for reducing the number of people experiencing homelessness in New Jersey. These awarded projects will have a positive effect on the quality of life of disadvantaged people in our state.”

The five grantees in three different counties will be renovating and constructing a total of 16 rental units for individuals with extremely low-income levels and special needs.  Among the recipients of the grants are The Sierra House and LUA Homes in Essex County, Reformed Church of Highland Park and Coming Home of Middlesex County in Middlesex County, and Ocean Community Economic Action Now in Ocean County.

The HTF program provides up to $400,000 in subsidy per unit (based on need and bedroom size). The maximum per project award is $700,000. The funds will be used by grantees for acquisition, construction, renovation, reconstruction and demolition for their new construction or reconstruction projects.

DCA’s Division of Housing and Community Resources has committed some of its own funding for this initiative by contributing project-based rental assistance vouchers to the selected projects when they are complete.

The Housing Trust Fund was established in 2008 after Congress passed the Housing and Economic Recovery Act.  This is the second time DCA has received HTF dollars for affordable housing production. In 2017, DCA awarded HTF funds to six developers for projects that are currently underway which will benefit approximately 25 households that include individuals with special needs.

The 2018 funding recipients and projects are listed below:

DCA receives, distributes, and administers the Housing Trust Fund dollars for the State. The program, which is funded by the U.S. Department of Housing and Urban Development (HUD), provides zero-percent loans to eligible housing developers to create affordable rental units through either rehabilitation or redevelopment. Occupancy of the units developed under this program is restricted to households at or below 30 percent of Area Median Income as defined by HUD for a period of at least 30 years.

Established in 1967, DCA offers a wide range of programs and services that respond to issues of public concern including affordable housing production, fire safety and building safety, community planning and development, local government management and finance, and disaster recovery.

For more information about DCA, visit: www.nj.gov/dca/