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Christie Administration Marks Groundbreaking for Rehabilitation of Affordable Rental Properties in Passaic
Home > Media Room > HMFA in the News > News 2016 > Christie Administration Marks Groundbreaking for Rehabilitation of Affordable Rental Properties in Passaic
For Immediate Release: Contact:
March 10, 2016 Tammori Petty
Emike Omogbai
609-292-6055
 

Christie Administration Marks Groundbreaking for Rehabilitation of Affordable Rental Properties in Passaic

The Housing Authority of the City of Passaic will rehabilitate 130 senior units located on three separate sites
 
PASSAIC, NJ – New Jersey Housing and Mortgage Finance Agency (HMFA) Executive Director Anthony L. Marchetta recently joined local and state officials, community leaders and representatives of the Housing Authority of Passaic, to celebrate the groundbreaking for the rehabilitation of three existing affordable senior apartment communities in Passaic including Harry K. Hecht Senior Site, 299 Gregory Ave; John J. Murphy Senior Site, 14-34 E Monroe Street; and Maurice Miller Senior Site, 61-63 Ascension Street.
 
Currently occupied, the Harry K. Hecht Apartments is a seven-story high-rise building consisting of 20 studios, 24 one-bedroom and six two-bedroom apartments. The second property, John J. Murphy Apartments, is a seven-story high-rise building with 20 studios, 24 one-bedroom and six two-bedroom apartments. Each of the buildings has one elevator.  Maurice J. Miller Apartments, a three story building, offers 27 one-bedroom and three two-bedroom apartments. The existing residents of these properties, through meetings with the Housing Authority, provided feedback on what the conversion meant to them, which resulted in a relocation Plan to ensure minimal disruption during construction. 
 
The project involves rehabilitation of the existing units including new kitchens, bathrooms, appliances, new cabinets, HVAC, new plumbing, elevator, and electric. Exterior rehabilitation includes new facades, doors, drywall, windows, roofs, exterior lighting, landscaping, intercom system, electric and building system upgrades, windows, exterior doors and walls, parking and driveways deck wood replacement, new siding and general landscaping improvements.
 
The HMFA, an affiliate of the New Jersey Department of Community Affairs, awarded the redevelopment project 4% federal Low Income Housing Tax Credits (LIHTC) that will generate approximately $6 million in private equity, and provided more than $9.1 million in construction loan and permanent Conduit Bond financing. Total development cost for the project is $17.2 million.
 
“We are very pleased to provide the financing that will revitalize three apartment complexes that are important to Passaic seniors,” said HMFA Director Marchetta. “By ensuring that New Jersey’s seniors are able to live comfortably in affordably-priced, decent rental apartments, we at HMFA continue to fulfill our mission to building strong, quality homes within healthy, safe and vibrant communities.”
 
One-hundred percent of the residential units will be restricted and occupied by households with income limits lower than 60% of the area median income. The net rents for the studio units are $645, one-bedroom units are $706 and two-bedroom units are $806.  The average square footage for the studio unit is approximately 290 square feet, the one-bedroom unit is approximately 750 square feet and two-bedroom unit is approximately 900 square feet.
 
HMFA estimates that the project will generate approximately $27.2 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 163 direct and indirect/induced full-time equivalent jobs, and generate nearly $979,000 in state and local taxes. Once complete, Hecht, Murphy and Miller Apartments will continue to add value to the community by providing approximately $3 million in ongoing economic output, 17 direct and indirect/induced full-time equivalent jobs, and approximately $172,000 in state and local taxes annually.

Economic Impact Analysis figures were estimated using multipliers derived from a 2013 study entitled “Economic and Fiscal Impacts of the New Jersey Housing and Mortgage Finance Agency’s Investment in Affordable Housing,” conducted by HR&A Advisors, Inc., a real estate and economic development consulting firm.

For more information on HMFA programs, please call 1-800-NJHOUSE or (609) 278-7400, or visit www.njhousing.gov