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Christie Administration Marks Groundbreaking of Affordable Housing Project Assisted with Federal Sandy Recovery Funds
Home > Media Room > HMFA in the News > News 2014 > Christie Administration Marks Groundbreaking of Affordable Housing Project Assisted with Federal Sandy Recovery Funds
For Immediate Release: Contact:
August 5, 2014 Lisa Ryan

609-292-6055
 

Christie Administration Marks Groundbreaking of Affordable Housing Project Assisted with Federal Sandy Recovery Funds


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From L-R: Terry Reed, VP of CIS; Anthony J. Nestro, Director of Public Works; Councilman Elias N. Chalet; Councilman Carlos Pomares; Councilman Nicholas Joanow; Glenn Domenick, Director of Community Development; Assemblyman Ralph Cuputo; Mayor Michael Venezia; Christiana Foglio, CEO of CIS; Parking Authority Commissioner Lemon Mackenzie; Parking Authority Commissioner Cheryl McCants; Parking Authority Chairman Robert DeMarino; Deb Urban, Director of Tax Credit Services, NJHMFA; Barbara Schoor, VP of CIS

Heritage Village at Bloomfield Provides 82 Affordable Rental Opportunities for Senior Citizens, Five Housing Units Set Aside for Individuals with Special Needs

BLOOMFIELD TOWNSHIP, N.J. – New Jersey Housing and Mortgage Finance Agency (HMFA) Executive Director Anthony L. Marchetta today joined state and local officials, and representatives of Community Investment Strategies (CIS) to celebrate the groundbreaking of Heritage Village at Bloomfield, an 82-unit affordable rental community for seniors in Bloomfield, Essex County, one of the nine counties most impacted by Superstorm Sandy as determined by the U.S. Department of Housing and Urban Development (HUD). The project has been awarded federal Sandy Recovery funds.

The HMFA, an affiliated agency of the New Jersey Department of Community Affairs, awarded the project approximately $5.3 million in federal Community Development Block Grant (CDBG) Disaster Recovery monies through the Fund for Restoration of Multifamily Housing (FRM). In the aftermath of Superstorm Sandy, the FRM program was created to provide for-profit and non-profit housing developers an opportunity to secure zero- and low-interest loans to finance the development of affordable housing in the nine counties that HUD designated as the most impacted by the storm. In addition, the project was able to leverage the extremely competitive 9% federal Low Income Housing Tax Credits (LIHTC), an existing affordable housing program that the HMFA administers for the state. These tax credits are anticipated to generate approximately $12.9 million in private equity. The HMFA also provided the project approximately $9 million in construction and permanent financing.

“Today’s groundbreaking demonstrates the Christie Administration’s commitment to quickly rebuild all types of housing lost to Sandy so that all New Jersey residents can find affordable homes that meet their needs,” said New Jersey Department of Community Affairs Commissioner Richard E. Constable, III, who also serves as Chairman of the HMFA. “Heritage Village at Bloomfield will provide quality affordable housing opportunities for low- to moderate-income senior citizens, as well as seniors in storm-impacted counties who were directly affected by Sandy.”

During the first three months of lease-up of Heritage Village at Bloomfield, priority will be given to Sandy-impacted individuals who registered for Federal Emergency Management Agency (FEMA) assistance or who rented an apartment or owned a primary residence that was no longer habitable because of Sandy damage.

To date, the HMFA has closed on approximately $63 million in financing through the FRM program and approximately $117 million in construction and permanent financing for 14 affordable housing projects in the nine counties most impacted by Sandy. It is anticipated that the Low Income Housing Tax Credits awarded to these projects will generate approximately $135 million in private equity for the projects. Once completed, these 14 projects will provide 922 units of affordable housing.

Heritage Village at Bloomfield consists of the new construction of a five-story apartment complex with a total of 82 units for seniors 55 and older, including five units set aside for homeless individuals.

The project site is centrally located in downtown Bloomfield, which is well supported by essential services, numerous houses of worship, and schools. The Bloomfield Avenue train station, which provides easy access to New York City’s Penn Station, is located approximately two blocks from Heritage Village at Bloomfield.

“This senior housing project will not only give local senior citizens and Sandy-impacted seniors high quality affordable housing, but also the opportunity to age comfortably in place with great access to public transit and retail services in Bloomfield’s downtown,” said HMFA Executive Director Marchetta. “We are thrilled to provide the CDBG Disaster Recovery funds and capital financing that will enable the development of Heritage Village at Bloomfield, which will contribute a great deal to the local and state economy.”

The HMFA estimates that the project, which will cost approximately $20.3 million to develop, will generate an estimated $32 million in one-time economic output and approximately 192 full-time jobs during construction. Upon completion, the project will continue to add value to the community by providing approximately $3.6 million in ongoing economic output and 20 full-time jobs annually.

For more information on HMFA programs, including the Fund for Restoration of Multifamily Housing, visit www.njhousing.gov.