PLEASANTVILLE, N.J. – The New Jersey Department of Community Affairs (DCA) and New Jersey Housing and Mortgage Finance Agency (HMFA) today joined Pleasantville officials and representatives of RPM Development Group to celebrate the groundbreaking of the first two phases of Pleasantville City Center, a multi-phase, mixed-use, mixed-income redevelopment project in Atlantic County, one of the nine counties most impacted by Superstorm Sandy as determined by the U.S. Department of Housing and Urban Development (HUD). Phases I and II of the project, which will provide a total of 135 residential apartments, 10 of which will be set aside for individuals with special needs, have been awarded federal Sandy Recovery funds.
The HMFA, an affiliate of the DCA, awarded the two phases a total of approximately $7.3 million in Community Development Block Grant (CDBG) Disaster Recovery monies through the Fund for Restoration of Multifamily Housing (FRM). The FRM program provides for-profit and non-profit housing developers an opportunity to secure zero-interest and low-interest loans to finance the development of affordable housing in the nine most impacted counties. Additionally, HMFA provided a total of approximately $3.75 million in permanent financing for Phase I and II, and awarded the project the extremely competitive 9% federal Low Income Housing Tax Credits (LIHTC), which will generate a total of approximately $25.15 million in private equity.
“This project is illustrative of collective efforts to bring back to the Pleasantville community, Atlantic County, and our state what was lost during the worst natural disaster in New Jersey’s history. New Jersey’s rental housing stock took a serious body blow from Sandy with more than 15,600 rental units having sustained severe or major damage,” said DCA Deputy Commissioner Melissa Orsen. “As such, DCA is pleased to be able to use Sandy recovery funds to support worthwhile housing projects statewide such as Pleasantville City Center that help replenish the supply of affordable housing units that were destroyed or damaged by the storm.”
During the first three months of lease-up of the first two phases of Pleasantville City Center, 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.
Phases I and II of the development, which will cost a total of approximately $38.6 million to construct, will have a positive economic impact on the greater Atlantic County community. HMFA estimates that construction of the two phases will generate approximately $61.2 million in one-time economic output, approximately 367 full-time jobs, and $2.2 million in state and local taxes. Once completed, the entire project will continue to add value to the community by providing over $6.8 million in ongoing economic output, 39 full-time jobs annually, and approximately $386,000 in state and local taxes. Other funding sources for the development of Pleasantville City Center include deferred developer fees.
“The HMFA is thrilled to provide the capital financing in the development of this sustainable housing development that will provide high-quality affordable and market rate housing opportunities for hardworking New Jersey families,” said HMFA Executive Director Anthony L. Marchetta. “Pleasantville City Center, which epitomizes our mission of increasing the availability of safe, permanent, affordable housing in New Jersey, will help bring economic diversity and stability to the City of Pleasantville and its surrounding areas.”
Fronting Milan Avenue and Main Street, in the heart of Pleasantville’s downtown, Pleasantville City Center will transform an overgrown, underutilized lot on one of Pleasantville’s primary mixed-use corridors with a LEED-certified, modern building. Neighborhood services and shopping, employment opportunities, public transportation, medical facilities, public schools, and recreational facilities are all located within one half mile of the project. Among the 135 residential units in development, the majority will be affordable to households whose incomes are 60 percent or less than the area median income.
Founded in 1986, RPM Development Group is one of the leading developers of affordable housing in New Jersey with a goal to provide quality housing while aiming to improve neighborhoods.
For more information on HMFA programs, including the Fund for Restoration of Multifamily Housing, visit www.njhousing.gov.