City Crossing Includes Renovation of 131 Apartments for Working Families
JERSEY CITY – New Jersey Housing and Mortgage Finance Agency (HMFA) Executive Director Anthony L. Marchetta recently joined other state and local officials and community leaders to mark the ribbon-cutting for City Crossing, a project that rehabilitated a 131-unit affordable rental community for working families in Jersey City.
HMFA, an affiliate of the state Department of Community Affairs (DCA), awarded the redevelopment project 4 percent federal Low Income Housing Tax Credits, which generated approximately $14.5 million in private equity, and provided more than $27 million construction loan and permanent Conduit Bond financing. The project also was approved for assistance of up to $10 million over 10 years by the Board of the New Jersey Economic Development Authority (EDA) under the Economic Redevelopment and Growth (ERG) program.
“City Crossing has undergone significant rehabilitation,” said DCA Commissioner Charles Richman, who also serves as chairman of the HMFA board. “Additional outdoor space, including amenities for children as well as a community garden, will contribute to the overall enhancement of the community.”
City Crossing comprises 18 apartment buildings two blocks apart, at 391‐413 Montgomery Street and 451‐489 Montgomery Street, with 131 residences in two-, three-, four- and five-bedroom floor units within one-, two- and three-story walk-up, garden-style buildings.
“The rehabilitation of the apartments at City Crossing will not only improve the quality of life for all residents, but contribute to the overall improvement of the neighborhood,” HMFA Executive Director Marchetta said. “This redevelopment helps ensure both the availability and accessibility of safe, decent and affordable housing for working families.”
With a total development cost of $40.2 million, the rehabilitation project repaired normal wear and tear sustained over three decades since the former Brunswick Estates was first built, along with damage from Superstorm Sandy. In addition, one central building that was used for a small medical office, maintenance and security, was converted into a management office and community space for the residents with empowering social services provided by Greater Bergen Community Action. The rehabilitation also added green spaces, a playground, a community garden, multiple bike racks, landscaping and improved security.
“The modernization of the City Crossing residential property has not only increased its energy efficiency, but has added amenities that will help to foster a sense of community and well-being,” said EDA CEO Melissa Orsen. “This project reinforces several key objectives of the Economic Redevelopment and Growth Program, including the investment it brings to a targeted urban area and its proximity to transit access.”
Exterior rehabilitation work, on the project, redeveloped by WinnDevelopment Company LP, included:
- renovation and repainting of building facades and replacement of inefficient windows
- installation of new playground equipment and the installation of bike racks
- addition of green and landscaped spaces
- repaving/restriping of all on-site vehicle parking spaces
- installation of modern, sustainable central air conditioning units, replacing inefficient through-sleeve A/C units.
Interior work included:
- new Energy Star appliances
- overhauling the heating systems with energy-saving furnaces
- sustainable fixtures
- replacement of all fire protection devices
- seven fully Accessible/ADA-compliant units
All 131 units are rental housing, targeting households at or below 60 percent of Area Median Income. Following the renovation, the unit mix of the property stands at 40 two-bedroom units, of which seven will be handicap-accessible; 58 three-bedroom units; 23 four-bedroom units; and 10 five-bedroom units.
HMFA estimated that the project generated approximately $63 million in one-time economic output, defined as the total value of industry production, such as sales and business revenues. During construction, the project will support approximately 381 direct and indirect/induced full-time equivalent jobs, and generated nearly $2.3 million in state and local taxes. Now completed, City Crossing is expected to continue to add value to the community by providing approximately $7.1 million in ongoing economic output, 40 direct and indirect/induced full-time equivalent jobs, and approximately $402,000 in state and local taxes annually. Further, the project exceeded local and state employment goals with 74 percent minority workforce and 39 percent Section 3 workforce.
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.
For more information on Conduit Bond financing and other HMFA programs, (609) 278-7400, or visit www.njhousing.gov.