RIVER VALE, N.J. – New Jersey Housing and Mortgage Finance Agency today announced the groundbreaking for River Vale Senior Residence, a 50-unit rental community for low-income senior citizens ages 62 and up in River Vale, Bergen County. The HMFA, an affiliate of the New Jersey Department of Community Affairs (DCA), provided the project $6.3 million in construction financing and awarded the project 4% federal Low Income Housing Tax Credits (LIHTC) that generated approximately $3.5 million in private equity.
"River Vale Senior Residence is truly a collaboration and partnership among federal, state, county, and local government entities, especially the Township of River Vale that donated the land for the project," said DCA Commissioner Richard E. Constable, III, who also serves as Chairman of the HMFA. "This affordable senior housing project will help Bergen County’s older adults to age comfortably in place with autonomy and dignity."
One hundred percent of the project units will be affordable, with 49 apartment units available to households with incomes at or below 50% of the Area Median Income (AMI). In addition to the affordability of the units, River Vale Senior Residence will have a positive economic impact on the Bergen County community. HMFA estimates that the project, which will cost approximately $12.4 million to construct, will generate approximately $19.6 million in one-time economic output, 118 direct and indirect/induced full-time jobs, and $718,500 in state and local taxes during construction. Upon completion, the project will continue to add value to the surrounding area by providing approximately $2.2 million in ongoing economic output, 12 direct and indirect/induced full time jobs, and $124,000 in state and local taxes annually.
Other funding sources for the development of River Vale Senior Residence include a Capital Grant from the U.S. Department of Housing and Urban Development (HUD) in the amount of $8.1 million, a predevelopment grant from HUD of $400,000, and CDBG funds from Bergen County in the amount of $253,000. HUD will also provide an operating subsidy.
"HMFA is so pleased to contribute to the financing of River Vale Senior Residence through the federal Low Income Housing Tax Credit program, which we administer for the State of New Jersey," said HMFA Executive Director Marchetta. "This program has helped produce more than 40,000 housing opportunities for New Jersey’s working class since its inception in 1986, and is one of the most successful and efficient federal housing programs ever created to incentivize the private market to invest in the creation or rehabilitation of quality affordable rental housing that enhances our neighborhoods."
The development will consist of a newly constructed three-story building with 49 one-bedroom apartment units and one two-bedroom unit for a resident manager. Project amenities will include a laundry room, community room, warming kitchen, administrative offices, and on-site parking. The site is in close proximity to public transportation, shopping, grocery stores, medical facilities, and other services. Additionally, River Vale Senior Residence is located in a "Ready to Grow" area, one of the specified selection criteria for the federal Low Income Housing Tax Credits application.
The Domus Corporation is the housing development arm of the Diocese of Newark and oversees the operations of five affordable senior projects (282 units) in New Jersey as well as over 1,300 units of special needs and transitional housing. Catholic Charities is one of the largest social service providers in New Jersey and advocates for and empowers the poor, oppressed or vulnerable who reside in the Diocese of Newark.
For more information on HMFA programs, please visit www.njhousing.gov.