Project Will Provide 64 Affordable Units for Low-to-Moderate Income Families
Asbury Park, NJ – New Jersey Housing and Mortgage Finance Agency (NJHMFA) Executive Director Anthony L. Marchetta today joined local officials, as well as representatives of the Michaels Development Company to celebrate the groundbreaking of The Renaissance, a 64-unit affordable rental community for families financed in part with Superstorm Sandy recovery funds.
The $20.2 million project involves the construction of a 32-unit, four-story building and four townhouse buildings, each containing eight rental units. Five units would be set aside for homeless individuals and families, with a preference for homeless veterans. The project is being built on three vacant adjacent parcels on Springwood Avenue and is part of the corridor’s ongoing redevelopment.
NJHMFA is providing significant funding for the project: $10.5 million in construction and permanent loan financing, as well as $8.87 million in federal Community Development Block Grant Disaster Recovery assistance through the Fund for Restoration of Multifamily Housing (FRM). The FRM program was created following Superstorm Sandy to provide for-profit and nonprofit 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.
“The Renaissance will provide much-needed affordable housing for families and add to the ongoing redevelopment of the city,” said New Jersey Department of Community Affairs (DCA) Commissioner Charles A. Richman, whose department administers many of New Jersey’s Sandy recovery initiatives and who also serves as chairman of the NJHMFA board. “The Renaissance is a substantial investment in Asbury Park and continues to help meet a demand for affordable housing that was exacerbated by Superstorm Sandy.”
In four rounds of FRM funding, NJHMFA has awarded over $650 million to 76 projects, representing over 6,000 rental units, and resulting in nearly $1.6 billion in total investment. To date, 45 projects, representing nearly 3,100 units, have been completed.
The Renaissance project also received federal 4 percent Low Income Housing Tax Credits, which are expected to generate $7.8 million in private equity. The development is targeted to households earning less than 60 percent of the Area Median Income (AMI). Rents on the one- and two-bedroom units will range from $250 to $1,400, depending on income.
“Working families of limited financial means will be able to stay and grow in the community because of this project,” said NJHMFA Executive Director Marchetta. “This development will also help some of the state’s most vulnerable residents – the homeless – find safe, stable housing to enable them to get back on their feet.”
During the first 90 days of lease up, priority for residency will be given to individuals who were displaced by or experienced major or severe storm damage from Superstorm Sandy. Storm-impacted 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 you to a website listing flyers on available housing by county.
Sandy-impacted residents who wish to apply for housing at The Renaissance should contact Interstate Realty Management, which will be managing the property. Michaels Development Company and Interstate Realty Management are both independent operating companies of The Michaels Organization and can be reached at info@TMO.com.
The development, which is expected to be complete in January 2019, is close to the Asbury Park Transportation Center, a transportation hub for both buses and rail. The Renaissance is also within a mile of Asbury Park’s beach front, and retail shopping and restaurants.
Interstate Realty Management’s partner for supportive services, Better Tomorrows, will provide support services for special needs residents. Better Tomorrows is a New Jersey non-profit corporation, which provides social services to low-income individuals throughout the United States.
NJHMFA estimates that the project will generate approximately $32 million in one-time economic output, which is defined as the total value of industry production, such as sales and business revenues. During construction, the project is expected to support approximately 192 direct and indirect/induced full-time equivalent jobs, and generate over $1.1 million in state and local taxes. Once complete, the project is expected to continue to add value to the community by providing nearly $3.6 million in ongoing economic output, about 20 direct and indirect/induced full-time equivalent jobs, and approximately $202,000 in state and local taxes annually.
Michaels Development Company, based in Marlton, has more than 40 years of experience in producing quality affordable housing.
For more information on FRM Program and other HMFA programs, please visit www.njhousing.gov.