Newark Development Enterprises, LLC, an Entity of the Housing Authority of the City of Newark, Completes Renovation of 103 Affordable Apartments for Seniors in Essex County
NEWARK – New Jersey Housing and Mortgage Finance Agency (HMFA) recently marked the substantial rehabilitation and grand opening of Lincoln Towers in Newark formerly Scudder Homes, Geraldine “GiGi” Foushee Towers. The completion of Phase I represents the successful halfway mark in the construction and renovation efforts of 103 one- and two-bedroom rental apartments for seniors within two newly renovated 11-story buildings. The developer is Newark Development Enterprises, LLC, an entity of the Housing Authority of the City of Newark (NHA). The total development cost is approximately $64.4 million.
“The substantial renovation that is currently underway at Lincoln Towers shows the strides that have been made in the affordable housing industry since the old, outdated concepts of the 1960s,” said NJHMFA Anthony Marchetta. “The significant upgrades being implemented for the Lincoln Towers apartments and its buildings are one more example of HMFA’s continuing commitment and dedication to increasing the availability of and accessibility to safe, decent and affordable housing for seniors in New Jersey.”
Originally built in 1962 by the NHA, Lincoln Towers was a 252-unit senior housing complex. The new renovation and construction reduced and reconfigured the number of units to 209 apartments in an effort to create more efficient living spaces. The buildings feature brand new facades, windows, flooring, laundry facilities, community room, security cameras, a keycard building access system and larger elevators. The building’s newly renovated cafeteria features a full kitchen and an exterior patio. Numerous supportive social services are offered on-site as well as recreational and nutritional education workshops.
Each apartment is equipped with upgraded amenities including central heat and air-conditioning and energy efficient appliances. During Phase I construction, residents living in the first tower moved to the second tower or were provided vouchers for an off-site apartment. Now that construction on the first tower is complete, residents are moving back into the building. Construction is currently underway on the second tower, Phase II. Forty percent or more of the residential units will be restricted and occupied by households whose income is 60 percent of the Area Median Income.
NHA Executive Director Keith Kinard, said, “The Housing Authority is dedicated to its mission to provide affordable, decent housing for our residents. We are particularly proud of the new safety measures at Lincoln Towers—new key card access, camera system and 24-7 concierge/security guard desk—to assist in making our seniors secure in their homes. Lincoln Towers is indeed an example of the good things that can happen when federal, state and local governments combine efforts to benefit its citizens.”
Lincoln Towers is located in the Springfield Avenue area of the Central Ward of Newark accessible to the New Jersey Performing Arts Center, Prudential Arena and nearby Lincoln Park. The property is close to University Heights which is home of University of Medicine and Dentistry of New Jersey, Essex County College, Rutgers Newark and The New Jersey Institute of Technology. The neighborhood is close to a number of bus stops, which provides access to New York City, regional major employment centers, retail and commercial facilities, schools and medical institutions.
“The Economic Redevelopment and Growth Program was designed to help developers bridge a gap in financing to move important projects forward,” said EDA CEO Melissa Orsen. “We are pleased to support the redevelopment of these residential towers, which will offer modern amenities and improved quality of life for many Newark residents.”
The HMFA, an affiliate of the Department of Community Affairs (DCA), awarded the affordable housing project 4% Low Income Housing Tax Credits, which is expected to generate $25.2 million in private equity. The Agency also provided approximately $34 million in construction financing through its Conduit Bond program. Lincoln Towers will also receive $11.5 million over 10 years in Economic Redevelopment and Growth credits from the New Jersey Economic Development Authority (EDA) along with Project-Based Vouchers from the United States Department of Housing and Urban Development.
The approximately $64.4 million development cost of this project will provide affordable housing opportunities for seniors and will continue to have a positive economic impact on Newark and greater Essex County. HMFA estimates that the project has generated more than $102.1 million in one-time economic output, defined as the total value of industry production, such as sales and business revenues. During construction, the project supports 612 direct and indirect full-time equivalent jobs, and more than $3.7 million in state and local taxes. Once completed, the project will continue to add value to the community by providing more than $11.4 million in ongoing economic output, 65 direct and indirect full-time equivalent jobs, and more than $644,000 in state and local taxes annually.
Economic Impact Analysis figures were estimated using multipliers derived from a 2013 study entitled “Economic and Fiscal Impacts of the New Jersey Housing and Mortgage Finance Agency’s Investment in Affordable Housing,” conducted by HR&A Advisors, Inc., a real estate and economic development consulting firm.
NHA, a public housing and redevelopment agency, owns and manages approximately 8,000 public housing units throughout Newark including townhouses, family developments and housing for the elderly and disabled. NHA also administers nearly 46,500 Housing Choice Vouchers.
For more information on HMFA programs, please visit www.njhousing.gov.