Project in Manchester Township Will Provide 76 Affordable Units for Seniors, Including Individuals with Special Needs
Manchester Township, NJ – New Jersey Housing and Mortgage Finance Agency (HMFA) executive staff today joined local officials and representatives of Ingerman Development to mark the groundbreaking of Birchwood at Whiting, a senior housing project financed with the help of Superstorm Sandy recovery funds.
The $19.3 million project will provide 76 affordable units for seniors, including five units set aside for special needs residents with developmental disabilities.
HMFA is providing significant funding for the project including $10 million in construction and permanent financing from the agency’s Multifamily Conduit Bond program, which enables the developer to issue bonds through HMFA on a pass-through basis. The project also received $9.1 million in Community Development Block Grant (CDBG) Disaster Recovery funds through the HMFA’s Fund for Restoration of Multifamily Housing (FRM) program, which was created in the aftermath of Superstorm Sandy to provide for-profit and non-profit housing developers an opportunity to secure zero-interest and low-interest loans to finance the development of affordable housing in the nine counties most impacted by the storm, as determined by the Department of Housing and Urban Development.
The developer has also applied for federal 4% Low Interest Housing Tax Credits, which are expected to generate $7.3 million in private equity for the project.
To date, HMFA has funded approximately 5,150 housing units for households of low-to-moderate-income through the FRM program. HMFA received federal approval in June 2017 to provide a fourth round of FRM funding, which is anticipated to create an additional 255 to 350 affordable housing units in counties hit hard by Sandy.
“Sandy significantly reduced the supply of rental housing stock in New Jersey, especially in places like Ocean County that were most affected by the storm. This loss of rental units – coupled with low vacancy rates and increased costs – created tremendous hardships for families of limited financial means who were looking for affordable housing,” said New Jersey Department of Community Affairs (DCA) Commissioner Charles A. Richman, whose department administers most of New Jersey’s Sandy recovery initiatives and who also serves as chairman of the HMFA board. “The FRM Program is addressing this critical need by creating good quality affordable housing like the kind that will be available at Birchwood at Whiting when it opens next year. We look forward to financing more worthwhile projects in Sandy-impacted communities.”
As with any FRM-funded development, priority for residency during the first 90 days of leasing at Birchwood at Whiting will be given to individuals who were displaced by or experienced major or severe storm damage from Superstorm Sandy. Sandy-affected residents can learn more about affordable housing projects funded with Sandy recovery dollars by visiting the New Jersey Housing Resource Center at www.njhrc.gov and clicking on “Priority Housing for Sandy-Impacted Residents,” which will take visitors to a site listing flyers on available housing by county.
Birchwood at Whiting, located along Route 70, will feature a three-story, elevator-serviced building that will include one- and two-bedroom apartments, along with common space and a garden area. All homes will be affordable to residents at or below 60% of Area Median Income (AMI), with rents ranging from $220 to $858 for one-bedroom units and from $453 to $1,004 for two-bedroom units. The development is close to recreation, shopping, entertainment and health care facilities.
“HMFA provided the capital financing required to make Birchwood at Whiting possible by leveraging Sandy recovery dollars with our existing programs and financing,” said HMFA Executive Director Anthony L. Marchetta. “The result is a project that helps meet the challenge of affordable housing for seniors, as well as special needs residents.”
Ingerman Development is a leading developer, builder and manager of multi-family communities throughout the Mid-Atlantic region.
Ingerman’s Department of Community and Supportive Services (CSS) will provide services to all future residents of Birchwood at Whiting. For special needs residents, CSS will work closely with the state Division of Developmental Disabilities to facilitate links to residential, medical, vocational, and recreational supports and opportunities either in-house or working with other providers. For the remaining residents, Ingerman will participate in the HMFA’s Services for Independent Living (SIL) program, which is geared toward helping seniors age in place in an independent living environment.
HMFA estimates that the Birchwood at Whiting project will generate approximately $30.1 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 184 direct and indirect/induced full-time equivalent jobs, and generate over $1.1 million in state and local taxes. When completed, Birchwood at Whiting is expected to continue to add value to the community by providing approximately $3.4 million in ongoing economic output, 19 direct and indirect/induced full-time equivalent jobs, and approximately $193,000 in state and local taxes annually.
For more information on the Fund for Restoration of Multifamily Housing and other HMFA programs, please visit www.njhousing.gov.