The HMFA, an affiliate of the DCA, awarded the project approximately $5.8 million in federal Community Development Block Grant (CDBG) Disaster Recovery monies 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 approximately $14.6 million in agency financing, and awarded the project 4% federal Low Income Housing Tax Credits (LIHTC) that will generate more than $9.9 million in private equity. Other funding sources for the project include HOPE VI funds from the Atlantic City Housing Authority and a deferred developer fee.
“Sandy recovery initiatives like the FRM program are instrumental because they provide affordable housing opportunities for families, including those affected by the storm, and they help to stabilize Sandy-impacted communities by mobilizing capital investment for major projects,” said DCA Commissioner Richard E. Constable, III, who also serves as Chairman of the HMFA. “This is why we are pleased to allocate FRM funds to The Meadows project.”
Completion of The Meadows is anticipated in March 2016. During the first three months of lease-up, priority for residency 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. The Atlantic City Housing Authority and Conifer Realty, LLC, will begin to accept apartment applications for available units in November of 2016. In the meantime, interested residents may be placed on the interest list by calling 609-385-0676. People on the interest list will be notified when applications become available.
Project amenities will include a community building with a community room, computer room, management offices and additional maintenance space. Housing unit amenities will include Energy Star appliances such as a dishwasher, frost free refrigerator, air conditioning, electric oven and a range hood with plenty of space. Residents in 62 of the 90 units will receive rental assistance.
The housing complex is conveniently located near various public transportation routes, the Atlantic City Casino District, schools, shopping centers, parks, churches, and medical facilities. The Atlantic City Expressway, Route 30 and Route 40, which are all major roadways in South Jersey, are located one mile from the site.
“This development will help working families secure high quality affordable housing and promote an active lifestyle with great access to public transit and retail services throughout Atlantic City,” said HMFA Executive Director Marchetta. “We are thrilled to provide the capital financing that will enable the development of The Meadows, which will contribute a great deal to the local and state economy.”
“Today we break ground on the final phase of a project in a community that has been dramatically transformed by HOPE VI funding from the U.S. Department of Housing and Urban Development (HUD) and the local investments it helped catalyze,” said Holly Leicht, HUD Regional Administrator for New York and New Jersey. “Over the last 16 years, this neighborhood has leveraged federal funds to add a new public elementary school, a Boys and Girls Club and a new daycare center, and to refurbish its firehouse, in addition to building over 200 new market-rate housing units and nearly 150 new public housing units. And in the next year, leveraging HUD’s disaster recovery funds and a strong partnership among Atlantic City, the State of New Jersey and Conifer, 90 more affordable units will come on line to not only continue the revitalization of this community, but to provide new homes that will be prioritized for residents most affected by Superstorm Sandy.”
HMFA estimates that the project, which will cost approximately $27.8 million to construct, will generate approximately $44 million in one-time economic output, 264 direct, indirect, and induced full-time jobs, and $1.6 million in state and local taxes during construction. Upon completion, the project will continue to add value to the community by providing approximately $4.9 million in ongoing economic output, 27 direct, indirect, and induced full-time jobs, and $278,000 in state and local taxes annually.
The project will be developed by Conifer Realty, LLC, a nationally ranked, full-service real estate company with 40 years of experience specializing in the development, construction, management and ownership of high-quality, affordable housing communities.
For more information on HMFA programs, including the Fund for Restoration of Multifamily Housing, visit www.njhousing.gov