09/07/2017 | Press release | Distributed by Public on 09/11/2017 15:01
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
NUMBER OF PROJECTS
|UNITS||TAX CREDIT AWARDS||TAX CREDIT EQUITY||TOTAL DEVELOPMENT COSTS|
FAMILY CYCLE AWARDS:
|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||66|
|Jacob's Landing Phase||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:
|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:
|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:
|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|