JERSEY CITY, N.J. – New Jersey Housing and Mortgage Finance Agency (HMFA) Executive Director Anthony L. Marchetta today joined federal, county, and local officials, community leaders, and representatives of the Michaels Development Company and Jersey City Housing Authority (JCHA) to mark the groundbreaking of Glennview Townhouses II in Jersey City, Hudson County. Once construction is completed, the housing community will include 64 one- to four-bedroom units for working families and individuals with special needs. The project has been awarded federal Sandy Recovery funds.
The HMFA, an affiliate of the New Jersey Department of Community Affairs (DCA), awarded the project approximately $4.8 million in federal Community Development Block Grant (CDBG) Disaster Recovery funds 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 the federal government designated as the most impacted by the storm.
The HMFA also provided the project approximately $6.2 million in funding through its Multifamily Conduit Bond Program, with CitiBank as the Conduit lender of the HMFA bonds. Additionally, the agency awarded the project the competitive 9% federal Low Income Housing Tax Credits (LIHTC) that will generate approximately $9.5 million in private equity. Other funding sources included a bridge loan from the Bank of America, a deferred developer fee, and the JCHA.
"DCA is pleased to allocate Sandy recovery funds to affordable housing projects that are located in storm-impacted counties in the state. Glennview Townhouses II will help revitalize a former public housing site into a thriving residential community,” said DCA Commissioner Richard E. Constable, III, who also serves as Chairman of the HMFA. “Sandy Recovery initiatives like the FRM program help meet the housing needs of people with special needs who are often times 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 Glennview Townhouses II, priority for residency will be provided 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. Interstate Realty Management (IRM) Company, an affiliate of The Michaels Development Company, began accepting apartment applications for available units starting in January 2015. Interested residents may learn more about how to apply at www.themichalesorg.com/communities. Completion is anticipated in June 2016.
Glennview Townhouses II, which is the seventh and final phase of the redevelopment of the Lafayette Gardens HOPE VI affordable housing community, will be mixed-income. Among the 64 total housing units, 56 will be affordable at or below 60 percent of the Area Median Income, and eight will be market rate. Of the 56 affordable units, 38 will be public housing and 16 will be set aside for individuals with special needs. Located near downtown Jersey City, the site is within walking distance to two public parks, several elementary and preschools, and a shopping center with a supermarket, bank, restaurant, and other stores. Better Tomorrows, the social services arm of the Michaels Development Company, will provide direct case management services and connect local social service organizations to residents.
“This development will not only enable working families and individuals with special needs to secure high quality affordable housing, but will also promote community 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 Glennview Townhouses II, which will contribute a great deal to the local and state economy.”
HMFA estimates that the project, which will cost approximately $19.5 million to develop, will generate approximately $30.1 million in one-time economic output, 185 direct, indirect, and induced full-time jobs, and $1.1 million in state and local taxes during construction. Upon completion, the project will continue to add value to the community by providing approximately $3.8 million in ongoing economic output, 20 direct, indirect, and induced full-time jobs, and $195,000 in state and local taxes annually.
The project is being developed in partnership with the Jersey City Housing Authority by the Michaels Development Company, which has over 30 years of experience in producing quality affordable housing, and has successfully developed over 25,000 housing units in 18 states and the U.S. Virgin Islands.
For more information on HMFA programs, including the Fund for Restoration of Multifamily Housing, visit www.njhousing.gov.