Developments Would Provide More Than 1,200 Housing Opportunities in 10 Counties
TRENTON – Opening the door to over 1,200 new apartments affordable for families, seniors and residents with special needs, the Murphy Administration announced today it has awarded over $22 million in annual 9% federal Low Income Housing Tax Credits (LIHTC). The highly competitive tax credits are expected to generate $214.7 million in private investment to create 17 developments totaling nearly $325 million to help build a stronger New Jersey.
The 2019 awards, administered under the New Jersey Housing and Mortgage Finance Agency’s (NJHMFA) new, innovative guidelines, will create apartments for families in Closter, veterans in East Greenwich and seniors in Branchburg, among other projects. The new guidelines place greater emphasis on locating housing in areas providing children access to good school systems; creating on-site services, such as nurses and health-related programs, in senior housing to enable them to remain in their community; and renew emphasis on mixed-income development to avoid segregating low- and moderate-income housing.
The LIHTC program, which was established by the Tax Reform Act of 1986, is the most prolific source of funding for new affordable rental apartments for residents. Under this administration to date, NJHMFA has financed or awarded tax credits toward the creation or rehabilitation of over 6,400 affordable apartments across the state, including more than 330 special needs beds, and an additional 440 market-rate apartments with a total development cost of $1.45 billion.
“Low Income Housing Tax Credits make it financially possible to build and rehabilitate affordable housing for residents in New Jersey, which is why it is such a critical federal program,” said Lt. Governor Sheila Oliver, who serves as Commissioner of the Department of Community Affairs and NJHMFA board chair. “Governor Murphy and I remain committed to the production of safe, decent and affordable housing through the LIHTC program and New Jersey’s Affordable Housing Trust Fund – these are the engines that help drive our mission to ensure that everyone has a place to call home.”
One of the most effective features of the LIHTC program is each state’s ability to craft its own allocation plan and define the criteria for awarding tax credits. New Jersey has one of the country’s most innovative LIHTC programs.
“The new policy changes that have guided this year's awards continue to boost housing in areas of high opportunity and to deconcentrate poverty, making housing more affordable and accessible to all,” said NJHMFA Executive Director Charles A. Richman. “These awards will support affordable rental homes in suburban, rural and urban areas, with access to good schools, supportive services for seniors and veterans, and provide for income diversity to build stronger communities.”
How the LIHTC program keeps housing affordable
Under the LIHTC program, federal tax credits are awarded to developers to build new apartments or rehabilitate existing apartments. Typically, the tax credits are sold to investors who then provide private equity to fund construction. In return, the investors receive a dollar-for-dollar reduction on their federal tax returns for a period of 10 years. The equity generated from the sale of the tax credits can fund approximately 70% of a project. This additional capital lessens a developer’s debt burden and allows the project to carry a smaller mortgage. Consequently, rents will be more affordable to low- and moderate- income residents who qualify.
Since the inception of the LIHTC program, more than 59,000 apartments have been created in New Jersey. No direct funding comes from the New Jersey Treasury for the LIHTC program.
For more information on NJHMFA programs, visit www.njhousing.gov.
Please see the following charts for additional information on the projects awarded tax credits in the 2019 round.
LIHTC AWARD TOTALS:
(FAMILY, SENIOR, SUPPORTIVE HOUSING, AND MIXED-INCOME):
|CYCLE||# Of PROJECTS||TOTAL APARTMENTS||TAX CREDIT AWARDS||TAX CREDIT EQUITY||TOTA DEVELOPMENT COSTS|
FAMILY CYCLE AWARDS:
|211 Henderson Road||Middlesex||South Brunswick||RPM Development||116|
|Concord Residences||Somerset||Hillsborough||RPM Development||88|
|Apartments at Warren||Somerset||Warren||PIRHL||80|
|Closter Family Housing||Bergen||Closter||Housing Development Corporation of Bergen County||35|
|Willows at Junction Road||Hunterdon||Raritan Township||Ingerman||100|
|The Place at Sayreville||Middlesex||Sayreville||Community Investment Strategies||89|
|East Greenwich Family Housing||Gloucester||East Greenwich||Conifer/People for People Foundation||70|
|Walter G. Alexander Phase IV||Essex||Orange||Orange Housing Development Corporation||44|
|722 Chancellor Avenue||Essex||Irvington||NRP Group||56|
SENIOR CYCLE AWARDS:
|Branchburg Senior Apartments||Somerset||Branchburg||Walters Group||75|
|West Orange Senior Housing||Essex||West Orange||The Alpert Group||65|
|Hartford Village||Burlington||Medford||Volunteers of America||71|
|Hoffman Pavilion||Middlesex||New Brunswick||Pennrose||66|
|Union City Senior||Hudson||Union City||RPM Development||101|
SUPPORTIVE HOUSING CYCLE AWARDS:
|Project Freedom at Hamilton Woods||Mercer||Hamilton Township||Project Freedom||72|
|North Bergen Supportive Housing||Hudson||North Bergen||The Alpert Group/North Bergen Renaissance Corp.||
MIXED-INCOME RESERVE AWARDS:
|Parkside Place One and Two||Camden||Camden||Cornerstone Community Partners/Cinnaire||32|