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Mayor Fulop Announces $30 Million in CHOICE Neighborhood Tax Credits for JCHA

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JERSEY CITY – Mayor Steven M. Fulop announced on August 3 that the Jersey City Housing Authority (JCHA) has received $30 million in Choice Neighborhood tax credit funding.  

The funding is for three projects, including the renovation of one Montgomery Garden high-rise into 68 modern rental apartments for seniors, 64 new mixed income stacked townhouses and flats at Lafayette Gardens, and 70 units of housing and a 18,000 square foot early childhood education center at the A. Harry Moore/Gloria Robinson development. 

“This is a major award for Jersey City and will provide much-needed affordable housing for seniors and the community at large,” said Mayor Fulop.  “These projects are part of how the Housing Authority is transforming public housing and playing an integral role in the revitalization of Jersey City’s neighborhoods.” 

Mayor Fulop also lauded the award for recognizing the need for added pre-k classrooms for Jersey City’s growing youth population. 

“The Early Childhood Center planned for the Gloria Robinson development is a model we discussed in our policy paper on development and education needs with classrooms being built on the ground floor of residential buildings,” said Mayor Fulop. “We must build smart communities that serve the needs of our diverse and growing city.”

Glennview Townhouses Phase II: 

Glennview Townhouses Phase II is the final development with respect to the revitalization of the former Lafayette Gardens public housing project.  The development contains 64 new mixed income stacked townhouses and flats, which as with prior phases, will contain a mix of public housing units, affordable housing units and market rate units.  The Agency awarded a tax credit allocation in the amount of $936,139 and awarded Hurricane Sandy funding in the amount of $5,000,000. The tax credit award yields 10 years of tax credits to a potential investor in the amount of approximately $930,000 per year for 10 years.  It is anticipated that presently in exchange for this tax credit benefit, a private financial institution will purchase these benefits for between $9 to $9.5 million dollars.  It is anticipated that total project cost will be between $15-16MM dollars. 

Catherine Todd Senior Living Center:

The Catherine Todd Senior Living Center is the first phase of the revitalization of the Montgomery Gardens Public Housing Development.  The senior development will contain 68 affordable housing units for senior citizens, with these units being located in the only high-rise building that will remain on the Montgomery Gardens site.  The high-rise building will be completely renovated at a cost of approximately $22.5 million dollars.  In addition to the 68 affordable housing units, the building will contain approximately 5,000 square feet of community space to provide amenities and supportive services that will allow the residents to live independently in their own apartments for the duration of their lives. 

As with the Lafayette Senior Living Center, at the former Lafayette Gardens, it is anticipated that due to the supportive services provided to the residents, few will be required to utilize nursing homes for any extended period saving the State of New Jersey significant Medicaid dollars.   The New Jersey Housing and Mortgage Finance Agency made a tax credit award to this Project in the amount of $1,104,156 and awarded Hurricane Sandy funding in the amount of $5,000,000.   As set forth above, this tax credit award yields 10 years of tax credits to a potential investor of approximately $1.1 million dollars annually.  It is anticipated that presently, in exchange for this tax credit benefit, a private financial institution will purchase these benefits for approximately $11 million dollars. 

When the JCHA began the revitalization of Lafayette Gardens 12 years ago the first project funded by the State of New Jersey was the Lafayette Senior Living Center.  This funding pre-dated the HOPE VI award from the U.S. Department of Housing and Urban Development (HUD) of $35 million dollars. The JCHA is hopeful that history will repeat itself and that the funding of the Catherine Todd Living Center will a yield similar outcome and that HUD will award CHOICE Neighborhood funding for the Montgomery McGinley Square corridor plan.     The Housing Authority and its development partner have already been the recipient of a $250,000 planning grant for that effort and last year was one of nine finalists nationwide for the $30 million dollar award.

A Harry Moore IV (Gloria Robinson):

A Harry Moore IV will be the fourth and final phase of the Jersey City Housing Authority (JCHA)’s transformation of the “Duncan Projects” a dilapidated, crime-plagued high-rise public housing project into a vibrant mixed-income community. Developer Pennrose Properties, LLC (Pennrose), in partnership with JCHA, demolished the last of the former high-rise apartment buildings in 2010. Together, they completed Phase III, which consisted of 60 units, in early 2012.  Phase III is now fully-leased and the site is cleared and ready for the final phase of construction. Phase IV will consist of 70 units on a 1.85-acre portion of the site. At full build-out, the completed community will be 274 units on the 7.6-acre site. The final phase will also include an 18,000 SF Early Childhood Education Center, administered by the JC Board of Education. 

The development will be funded in part by a commitment of $1,552,228 in 9 percent Low Income Housing Tax Credits from NJHMFA, $3,904,428, in Sandy Relief funds, and over a million dollars in HOPE VI funds from the Jersey City Housing Authority. This tax credit award yields 10 years of tax credits to a potential investor of approximately $1.1 million dollars annually.  It is anticipated that presently, in exchange for this tax credit benefit, a private financial institution will purchase these benefits for approximately $14.5 million dollars.

 

Source: Press Secretary, City of Jersey City

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