Trenton, NJ – In effort to help increase the number of supportive housing opportunities in the state, the New Jersey Housing and Mortgage Finance Agency’s (NJHMFA) Board of Directors approved several financing commitments for new projects at its September 28 meeting, including two that will be financed in part by Superstorm Sandy recovery funds.
“Because of Sandy’s impact on housing that accommodates special needs populations, the Christie Administration has dedicated disaster recovery funds to the construction of quality, permanent supportive housing throughout the state to expand housing options for these groups,” said New Jersey Department of Community Affairs (DCA) Commissioner Charles A. Richman, who also serves as chairman of the NJHMFA board. “Projects funded by the Sandy Special Needs Housing Fund not only provide affordable housing opportunities, but also benefit the community by creating jobs, generating local and state taxes, and spurring local economic growth.”
The supportive housing projects include:
- Cedar Meadows Apartments, Woodbridge, Middlesex County, which received $15.6 million in construction and permanent financing from NJHMFA’s Conduit Bond Program and $4.2 million from the Sandy Special Needs Housing Fund (SSNHF) to build a four-story building with 100 rental units for families, including 25 units set aside for special needs residents. The Conduit Bond Program enables the developer to issue bonds through the NJHMFA on a pass-through basis. SSNHF was created in the aftermath of Superstorm Sandy to provide subsidies in the form of zero- and low-interest loans to developers of affordable supportive housing in the nine counties the federal government designated as the most impacted by the storm. The developer, Pennrose Properties, has also applied for federal 4 percent Low Income Housing Tax Credits (LIHTC).
- Garfield Supportive Housing, Toms River, Ocean County, which received $440,200 from the Sandy Special Needs Housing Fund for the construction of an 1,800-square-foot modular ranch-style home, which will have four bedrooms, two and 1/2 bathrooms, kitchen, living room, family room, dining room, office and laundry. The project, developed by Regan Development LLC, will provide permanent supportive housing for four individuals with disabilities.
- East Grand Supportive Housing, Montvale, Bergen County, which received approval of a mortgage commitment of $147,300 in permanent financing from the Developmental Disabilities Component of the New Jersey Community Housing Partnership Program Fund. The developer, Bergen County’s United Way/Madeline Housing Partners, plans to build a one-story, four-bedroom home to serve residents with developmental disabilities.
In addition, Whitlock Mills, a project to rehabilitate 330 apartments for families in Jersey City, received approval for $26.3 million under NJHMFA’s Conduit Bond program. The project also was awarded federal four percent LIHTC. The LIHTC incentive uses private equity to develop affordable rental housing. Developers sell these tax credits to investors to raise capital or equity for their projects, which reduces the debt that the developer would otherwise have to borrow. Because the debt is lower, a tax credit property can offer lower, more affordable rents. Construction is expected to start in November and be complete in February 2019.
“Low Income Housing Tax Credits have been an invaluable tool in providing affordable housing throughout New Jersey,” said NJHMFA Executive Director Anthony L. Marchetta. “Combined with NJHMFA’s Conduit Bond program, this project combines innovative financing to rehabilitate homes for hardworking New Jersey families.”
For more information on the Sandy Special Needs Housing Fund, Conduit Bond Program, and other NJHMFA programs, visit www.njhousing.gov.