HMFA Awards $31.9 Million in Federal Affordable Housing Tax Credits to Create More Than 1,700 Rental Units

November 20, 2015

Statewide Projects Include 1,655 Designated Affordable Housing Units

Trenton, NJ – November 20, 2015 – (RealEstateRama) — New Jersey Housing and Mortgage Finance Agency (HMFA) Executive Director Anthony L. Marchetta today announced the award of $31.9 million in federal Low Income Housing Tax Credits (LIHTCs), which will generate $319 million in investment capital to build more than 1,700 rental units across New Jersey.

These tax credits will support the creation of 25 affordable rental housing projects with a total development cost of nearly $430 million.? Of the total 1,749 planned units, 969 units will be affordable for families earning below 60% of the Area Median Income, 444 units will be affordable for seniors, and 242 will be affordable for individuals with special needs.? The units must be reserved for low-income households for a period of 30 to 45 years.

“The 9% federal Low Income Housing Tax Credits supports development in desirable neighborhoods with quality educational systems and access to employment opportunities,” said New Jersey Department of Community Affairs Commissioner Charles A. Richman, who also serves as Chairman of the HMFA. “These funds provide housing opportunities that will greatly impact and benefit the lives of New Jersey’s hardworking families, seniors and individuals with special needs.”

HMFA estimates that these awards will generate approximately $679 million in one-time economic output, defined as the total value of industry production, such as sales and business revenues. During construction, these projects will generate more than 4,000 full-time jobs and approximately $25 million in state and local taxes. Once completed, the developments will support approximately $76 million in economic output, 430 full-time jobs, and approximately $4.3 million in state and local taxes annually.

“We are proud of the many new affordable housing opportunities that will become available for the residents of New Jersey as a result of these awards,” said Executive Director Marchetta.

Federal LIHTCs are awarded to developers planning to build new rental apartments or rehabilitate existing units for low-income households. Typically, the tax credits are sold to investors, who 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.

The LIHTC program is the most successful federal affordable housing production program to date. Since the program’s inception in 1986, New Jersey has allocated over $450 million in LIHTCs and created more than 45,000 affordable units.

No direct funding comes from the State Treasury for this program. Please see charts below and attached for additional information.

For more information on HMFA programs, please call 609-278-7400 or visitwww.nj-hmfa.com.

AWARD TOTALS BY FUNDING CYCLES
(FAMILY, SENIOR, SUPPORTIVE HOUSING, AND MIXED-INCOME):

CYCLE	# OF PROJECTS	TOTAL UNITS	LIHTC UNITS	ANNUAL TAX CREDIT RESERVATON	TAX CREDIT EQUITY	TOTAL DEVELOPMENT COSTS
FAMILY	14	1,000	969	$19,571,775	$196,070,877	$251,359,032
SENIOR	7	483	479	$8,160,672	$81,442,984	$109,472,804
SUPPORTIVE HOUSING	3	138	137	$2,690,957	$26,788,598	$35,755,258
MIXED INCOME	1	128	70	$1,541,088	$15,438,116	$33,281,885
TOTALS	25	1,749	1,655	$31,964,492	$319,740,575	$429,868,979

FAMILY CYCLE AWARDS:

PROJECT NAME	SPONSOR	COUNTY	MUNI	UNITS
Parker’s View	Community Investment Strageties	Union	Elizabeth	60
Flemington Junction Apts.	Ingerman Development	Hunterdon	Flemington	84
Westampton Apts.	Ingerman Development	Burlington	Westampton	72
Jacob’s Landing	Ingerman Development	Middlesex	Woodbridge	96
Mullica West Phase II	Rukenstein & Associates	Gloucester	Mullica Hill	48
City Center	RPM Development	Atlantic	Pleasantville	73
Dr. Lena Francis Edwards	Genesis Companies	Hudson	Jersey City	64
Ethel Lawrence III & Connell	Fair Share/ Walters Group	Burlington	Mount Laurel	60
Woolwich Family Housing	Conifer/ Center for Family Services	Gloucester	Woolwich	80
Rahway Residences for the Arts	Ingerman Development	Union	Rahway	58
Clifton Main Mews	Regan Development	Passaic	Clifton	51
Cornerstone at Delanco	Walters Group	Burlington	Delanco	64
Camp Salute	Conifer/People for People of Gloucester County	Gloucester	Clayton	76
Hilltop Apartments	Urban Builders Collaborative/Kapwood	Essex	Irvington	114

SENIOR CYCLE AWARDS:

PROJECT NAME	SPONSOR	COUNTY	MUNI	UNITS
Apollo Dye Phase II	Pennrose Properties	Passaic	Paterson	63
Dalina Manor	Ingerman Development	Middlesex	Woodbridge	57
Bordentown Senior	Volunteers of America, Delaware Valley	Burlington	Bordentown	70
Pleasantville Senior	RPM Development	Atlantic	Pleasantville	65
Roosevelt Hospital	Pennrose Properties	Middlesex	Edison	85
Newton Town Center	RPM Development	Sussex	Newton	65
Landis Square Senior	Eastern Pacific/Tri-County CAP	Cumberland	Vineland	78

SUPPORTIVE HOUSING CYCLE AWARDS:

PROJECT NAME	SPONSOR	COUNTY	MUNI	UNITS
Amwell Commons	RPM Development	Somerset	Hillsborough	54
Freedom Village at Westampton Phase II	Project Freedom	Burlington	Westampton	24
Symphony Hall	Ingerman Development/YMCA of Newark	Essex	Newark	60