Christie Administration Awards Nearly $40 Million In Low Income Housing Tax Credits To Fund Affordable Housing For Working Families, Seniors, Special Needs Residents

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Award Is Largest Single Allotment of Low Income Housing Tax Credits since Program Began in New Jersey in 1986

Trenton, NJ – The New Jersey Housing and Mortgage Finance Agency (HMFA) awarded Low Income Housing Tax Credits (LIHTC) to 29 projects across the state to fund affordable housing for working families, senior citizens, and residents with special needs.

The projects, which span 14 counties and provide for 2,178 housing units, were awarded $39.8 million in competitive 9% LIHTC awards in the largest single announcement of tax credits since the program began in the state in 1986.

The tax credits, which were announced by Governor Christie on August 25 during a public event in Woodbridge, Middlesex County, will generate approximately $378 million in private equity to build the housing units, which have a total development cost of nearly $549 million.

Of the total planned units, 1,245 of them will be affordable for families earning below 60 percent of the Area Median Income (including 88 units set aside for the homeless), 423 of the units will be affordable for seniors at least 55 years old (including 30 units set aside for the homeless), and another 314 will be affordable for individuals and families with special needs. The affordable units must be reserved for low-income households for a period of 30 to 45 years. The remaining 196 housing units will be market rate.

‘This most recent round of tax credit awards demonstrates that New Jersey is taking full advantage of the Low Income Housing Tax Credits program, which has been a successful tool in the state for creating affordable housing,’ said New Jersey Department of Community Affairs Commissioner Charles A. Richman, who also serves as Chairman of the HMFA. ‘Through these credits, the State is able to leverage funding and expand housing opportunities that will positively impact the lives of working families, seniors and special needs residents, all of whom are of limited financial means.’

The HMFA estimates that these tax credit awards will result in more than $870 million in one-time economic output, defined as the total value of industry production, such as sales and business revenues. During construction, the projects will produce more than 5,200 full-time jobs and approximately $31.8 million in state and local taxes. Once completed, the projects will support approximately $97 million in economic output, 549 full-time jobs, and approximately $5.5 million in state and local taxes annually.

‘We are proud of our efforts through the Low Income Housing Tax Credits program to create affordable housing in areas that offer higher opportunities for our residents,’ said HMFA Executive Director Anthony L. Marchetta. ‘HMFA’s work to broaden the impact of these affordable housing tax credits across the state has opened doors to thousands of residents, not only improving their lives, but the greater community as well.’

Federal LIHTCs are awarded to developers to build new rental apartments or rehabilitate existing rental units for low-income households. 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 ten years.

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. Since 2013, HMFA has incentivized construction of low- and moderate-income housing in areas of low poverty and with proximity to job centers, public mass transit and high performing school districts.

Reports by the U.S. Department of Housing and Urban Development and the Joint Center for Housing Studies at Harvard University have recognized New Jersey’s efforts to utilize its LIHTC allocation plan as a tool to decrease economic segregation through housing location. Also, HMFA’s program was hailed in a 2017 report by NJ Future, which said the changes could ‘serve as a model for other states interested in similarly directing their allocation of affordable-housing tax credits.’

Please see the following charts for additional information on the projects awarded tax credits in the latest round.

For more information on HMFA programs, visit www.njhousing.gov.”

LIHTC AWARD TOTALS: FAMILY, SENIOR, SUPPORTIVE HOUSING AND MIXED-INCOME

CYCLENUMBER OFPROJECTSUNITSTAX CREDIT AWARDSTAX CREDIT EQUITYTOTAL DEVELOPMENT COSTS
FAMILY141,007$19,837,444$188,468,865$255,072,339
SENIOR6423$7,594,364$72,139,243$89,098,368
SUPPORTIVE HOUSING5314$6,382,466$60,629,282$84,616,536
MIXED INCOME4434$5,991,310$56,911,753$120,434,052
TOTALS292,178$39,805,584$378,149,143$549,211,295

FAMILY CYCLE AWARDS:

PROJECT NAMESPONSORCOUNTYMUNICIPALITYUNITS
Branch Village Townhomes – CNI Phase IMichaels DevelopmentCamdenCamden72
Bridgeton Villas Phase IIWinn CompaniesCumberlandBridgeton56
Camp Kilmer Phase APennrose PropertiesMiddlesexEdison86
Centerton Road Family HousingVolunteers of America DVBurlingtonMount Laurel103
The Place at PlainsboroCommunity Investment StrategiesMiddlesexPlainsboro71
Willows at Whitehouse StationIngermanHunterdonReadington Twp.72
Dover VeteransPennrose PropertiesMorrisDover68
Hilltop Residences (White Rock)RPM DevelopmentEssexNorth Caldwell50
Willows at Annandale VillageIngermanHunterdonClinton66
Jacob’s Landing PhaseTRF Development/ BCM Affordable HousingMiddlesexWoodbridge60
Clifton Main Mews IIRegan DevelopmentPassaicClifton92
Brittin VillageVolunteers of America DVCamdenPennsauken66
Rivergrove ApartmentsEastern Pacific & Gateway Action PartnershipCumberlandBridgeton68
Page HomesConifer Realty, LLCMercerTrenton77

MIXED-INCOME CYCLE AWARDS:

PROJECT NAMESPONSORCOUNTYMUNICIPALITYUNITS
Somerset SquareRPM DevelopmentSomersetFranklin151
Valley RoadAlpert GroupEssexWest Orange100
Jackson GreenRPM DevelopmentHudsonJersey City99
City Hall ApartmentsUrban Builders/Lettire/ Adenah BayohEssexNewark84

SENIOR CYCLE AWARDS:

PROJECT NAMESPONSORCOUNTYMUNICIPALITYUNITS
Birchwood at CranburyIngerman DevelopmentMiddlesexCranbury66
1721 Springdale RoadPennrose Properties, LLCCamdenCherry Hill80
Fair Lawn Senior HousingPenwal/Madeline/ Bergen County United WayBergenFair Lawn85
Cinnaminson Senior HousingMEND/Conifer RealtyBurlingtonCinnaminson54
Stonegate at St. Stephens Phase IIDiocesan Housing Services Corporation of the Diocese of CamdenCamdenPennsauken68
Winslow Cross Creek Phase IVEastern Pacific DevelopmentCamdenWinslow Twp.70

SUPPORTIVE HOUSING CYCLE AWARDS:

PROJECT NAMESPONSORCOUNTYMUNICIPALITYUNITS
Freedom Village at West WindsorProject Freedom Inc.MercerWest Windsor72
Freedom Village by the Lake at GibbsboroProject Freedom Inc.CamdenGibbsboro72
Valley Brook Village Phase IIAffordable Housing and Services Collaborative, Peabody Properties and Windover VeteransSomersetBasking Ridge50
E-Port Family HomesE-Town Housing & Community Development Corp. and Genesis CompaniesUnionElizabeth60
Somerset BrownstonesBetter Tomorrows/ Michaels DevelopmentEssexNewark60