ATLANTIC CITY, N.J. – New Jersey Housing and Mortgage Finance Agency (HMFA) Executive Director Anthony L. Marchetta today joined state and local officials and representatives of Homes Now Inc. and RPM Development Group to celebrate the groundbreaking of Beachview Residence, a project that will involve the redevelopment of a vacant and dilapidated beachfront structure into a 58-unit affordable apartment community in Atlantic City, 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). The project for seniors and individuals with special needs has been awarded federal Sandy Recovery funds.
The HMFA, an affiliate of the New Jersey Department of Community Affairs (DCA), awarded the project approximately $5.6 million in federal Community Development Block Grant (CDBG) Disaster Recovery monies through the Fund for Restoration of Multifamily Housing (FRM) program. 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. The HMFA also provided the project approximately $594,000 through the Sandy Special Needs Housing Fund, which provides similar financial assistance to developers who are constructing permanent supportive rental housing units for people with special needs.
In addition to Sandy recovery funds, the project was able to leverage the extremely competitive 9% federal Low Income Housing Tax Credits, an existing affordable housing program that the HMFA administers for the State of New Jersey. These tax credits are anticipated to generate approximately $11.5 million in private equity for the project.
"Beachview Residence will transform a vacant building in a neighborhood hit hard by Sandy into a vibrant housing development for seniors on fixed incomes and individuals with special needs, including those who were displaced by the superstorm in Atlantic County,” said DCA Commissioner Richard E. Constable, III, who also serves as Chairman of the HMFA. “Sandy recovery programs are helping to address the unmet housing needs of special needs populations who are oftentimes more vulnerable to natural disasters due to damaged or displaced support networks, accessibility issues or increased cost of living.”
During the first three months of lease-up of Beachview Residence, 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.
Aside from providing 58 affordable apartments, the project will also include a large reception area, a community room for resident activities, laundry facilities, two elevators, 73 parking spaces, and a rooftop terrace overlooking the Atlantic City beachfront. Beachview Residence will be designed to achieve LEED certification and incorporate various green design features including ENERGY STAR appliances, individual high-efficiency heating and cooling units, low VOC paints and finishes, low flow plumbing fixtures, and high efficiency lighting fixtures.
The project is located within a ready to grow neighborhood, near the beach, boardwalk, public transportation, local stores, restaurants, and the tourism district. All residents will have access to a range of services and activities targeted to the unique interests and needs of the senior and special needs tenants, including personal financial management, and health and wellness activities. The 15 special needs households will have full access to an on-site Resident Services Coordinator who will provide case management services and encourage independent living and self-sufficiency.
“This development will not only allow special needs individuals and families to secure high quality affordable housing, but it will also promote integration and an active lifestyle with greater access to public transit and retail services around the city,” said HMFA Executive Director Marchetta. “We are thrilled to provide the capital financing that will enable the development of Beachview Residence, which will contribute a great deal to the local and state economy.”
HMFA estimates that the project, which will cost approximately $19.2 million to rehabilitate, will generate approximately $30.5 million in one-time economic output and approximately 183 full-time jobs during construction. Upon completion, the project will continue to add value to the community by providing approximately $3.4 million in ongoing economic output and 19 full-time jobs annually.
The project will be developed by Homes Now Inc. and RPM Development Group. Homes Now Inc. is a non-profit corporation that provides affordable housing and services to municipalities throughout New Jersey. RPM Development Group is one of the leading developers of affordable housing in New Jersey with a history of adaptive reuse of historic structures, and 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.