NEWARK — The Murphy Administration today announced a new collaboration between University Hospital in Newark and L+M Development Partners, Type A Projects, and MSquared under the New Jersey Housing and Mortgage Finance Agency’s (NJHMFA) groundbreaking Hospital Partnership Subsidy Program, through which leading hospitals partner with experienced residential developers to provide vital affordable and supportive housing -- including homes for frequent users of emergency services -- in their host communities.
The Hospital Partnership Subsidy Program stems from the recognition that access to quality housing is critical to maintaining good health and that hospitals are crucial anchor institutions well-positioned to advance housing in conjunction with healthcare. Under this award-winning program, NJHMFA matches funding contributions from participating hospitals to provide affordable rental apartments for low- and moderate-income families, as well as apartments with access to supportive and wrap-around services for residents with special needs.
"Access to housing and quality medical care are social determinants of overall health. This new partnership not only addresses homeless individuals’ lack of access to affordable housing, but it offers them lifesaving supportive services," said Lt. Governor Sheila Oliver, who serves as Commissioner of the Department of Community Affairs and NJHMFA board chair. "This latest collaboration to develop housing opportunities for community members most in need will help break the cycle of homelessness in New Jersey."
"There is a clear nexus between health and housing, and this collaboration will provide critical affordable and supportive housing to Newark residents. The University Hospital project brings together efforts from federal, state, and local entities for the good of New Jersey residents," said Justin Scheid, HUD Newark Field Office Director. "It is a testament to and model for successful public/private partnerships in the affordable housing industry."
This project, which will be developed by L+M Development Partners, Type A Projects, and MSquared, functions as a gateway to University Hospital, enhancing the hospital’s connection to the City of Newark’s West Ward. The development will provide 78 affordable rental apartments that will serve low- and moderate-income households to promote economic diversity in the Fairmount neighborhood of Newark. Sixteen supportive housing units will be reserved for homeless individuals and families, and these will be supported by project-based rental vouchers provided through the New Jersey Department of Community Affairs’ Housing Choice Voucher Program. All supportive units will be paired with access to medical services. The project will also be a recipient of 30 project-based rental vouchers from the Newark Housing Authority. To date, the Hospital Partnership Subsidy Program has also advanced partnerships with St. Joseph’s Health in Paterson and RWJBarnabas Health in the City of Newark.
"The Housing Partnership Subsidy Program promotes well-being through access to quality housing. It works because "housing is healthcare,"" said NJHMFA Executive Director Melanie R. Walter. "The University Hospital Project demonstrates once more how this innovative program creates much-needed affordable and supportive housing by leveraging local institutional assets for community betterment."
The University Hospital project is located on a portion of the property at 250 Georgia King Village on West Market Street in the city’s Fairmount neighborhood.
The building will include a ground-floor clinic and hospital office space operated in partnership with University Hospital. This wellness center will enhance social services throughout the neighborhood by providing much-needed outpatient medical care to an at-risk population.
"This partnership is a game changer. In the future we are going to see more collaborations between housing developers, public health institutions, and the communities they serve. By building safe, decent, and affordable housing for at-risk residents, combining that with onsite supportive services and a community healthcare clinic, this collaboration breaks new ground. I expect that we will see more of this model in the future," said Mayor Ras J. Baraka. "A special thanks to Governor Murphy and NJHMFA for their innovative policy to help make this happen in Newark."
"Supportive housing has never been a more critical component to the equation of health care than it is today, and we are pleased to join with our state and local partners to develop this project in the heart of Newark. This initiative helps us lead into our long-term vision chipping away at upstream, social determinants of health," said Shereef Elnahal, MD, MBA, President and CEO of University Hospital. "This also brings our campus closer to meeting the obligations of the Newark Agreements, created in the wake of a different period of racial tension and re-dedicating this hospital to its community."
The $41.4 million project will receive $22 million in mortgage financing from NJHMFA, $1.6 million from the NJHMFA Special Needs Housing Trust Fund, and $6 million from the Hospital Partnership Subsidy Program, as well as $3 million from University Hospital and $300,000 in HOME funds from the City of Newark.
The project developer is also seeking federal 4% Low Income Housing Tax Credits. NJHMFA administers this program which generates private equity.
Construction is anticipated to begin in the summer of 2021 and be completed by the spring of 2023.
"From Downtown to the South and West Wards, our work relies on innovative public-private partnerships, and this is another great example of how government and the private sector can work together to address critical needs across the city," said Jonathan Cortell, Managing Director at L+M Development Partners. "We’re deeply committed to working with the city’s institutional anchors, and proud to work with University Hospital on this project to deliver high-quality healthcare services and affordable housing in the West Ward."
"Type A is excited to be a part of this timely public-private initiative prioritizing community health and wellness alongside affordable and supportive housing," said Jill Crawford, Co-founder and Principal of Type A Projects. "It is a privilege to partner with the University Hospital, NJHMFA and the City of Newark to create new community resources for positive health outcomes and access to affordable homes."
"Now more than ever is the time to invest in projects that create quality affordable housing options and healthy communities," said Alicia Glen, Founder and Managing Principal of MSquared. "Thank you to the State and City for their support and University Hospital for their collaboration on this important project that will benefit all residents of the Fairmont Neighborhood."
University Hospital is part of one of the nation's leading academic medical centers and is the Level 1 Trauma Center for Northern New Jersey. University Hospital is a principal teaching hospital of Rutgers Biomedical and Health Sciences and a regional resource for advanced services across many medical specialties.
Since its inception in 1984, L+M Development Partners Inc. has been an innovator in developing quality affordable, mixed-income and market-rate housing, while improving the neighborhoods in which it works. A full-service firm, L+M works from conception to completion, handling development, investment, construction and management with creativity that leads the industry. L+M is responsible for approximately $10 billion in development and investment, and has acquired, built or preserved nearly 35,000 high-quality residential units in New York’s tristate area, Washington, D.C., the West Coast and Gulf Coast regions. Community leaders, government officials and institutional investors turn to L+M because of its consistent track record of excellence.
L+M is a double bottom line company, where its success is measured not only in financial returns but also by positive impacts. L+M takes pride in its long-standing partnership with the communities it serves, demonstrated through an annual scholarship fund, workforce development programs, after-school programs, and substantial support for local nonprofits. L+M brings a superior level of commitment to its investments in developments, and equally important, to its investment in people. For more information, please visit: lmdevpartners.com.
Type A Projects is a mission-driven, women-owned real estate development firm dedicated to building affordable and inspiring places to live, learn, work and play. With more than 750 units of supportive and affordable housing in development in Newark and New York City, Type A works to open doors and impact lives in lasting and transformative ways.
MSquared is a women owned and managed real estate development and investment platform that delivers real solutions by partnering with government, developers and investors to build mixed-use, mixed-income projects that incorporate quality housing options for a wide range of incomes and a mix of spaces designed for local businesses, community facilities, and neighborhood institutions.
New Jersey Housing and Mortgage Finance Agency, an affiliate of DCA, is a statewide and national leader in providing and advocating for affordable housing and homeownership. The Agency provides financing to developers to create quality homes and provides mortgage loans and down payment and closing cost assistance to help homebuyers achieve their dream of homeownership. For more information about NJHMFA programs, visit njhousing.gov.