July-14-2011 DCA and HMFA Break Ground on 90-Unit Affordable Apartment Community in Newark
DCA and HMFA Break Ground on 90-Unit
Affordable Apartment Community in Newark
Baxter Park to Connect Communities to City's
NEWARK, N.J. – New Jersey Housing and Mortgage Finance Agency (HMFA) Executive Director Anthony Marchetta today joined City of Newark Mayor Cory Booker and local officials to break ground on Baxter Park, an affordable apartment community to be located at 39-47 Sussex Avenue near Newark's Broad Street Station District. The HMFA, an affiliate of the Department of Community Affairs (DCA), provided construction and permanent mortgage financing in the amount of $16,350,000 for the project. Baxter Park also is expected to be awarded federal Low Income Housing Tax Credits, which will generate approximately $10.2 million in private equity.
"Baxter Park represents not just an expansion of affordable housing options in the Newark area, but it will serve as an asset to the surrounding community," said DCA Commissioner Lori Grifa, who is also Chairman of the HMFA. "The DCA and HMFA are proud to be involved in projects such as these because they create high-quality affordable housing for those New Jersey households who need it."
Upon completion, Baxter Park will consist of two four-story apartment buildings with 90 affordable housing units, of which 4 will be one-bedroom, 70 two-bedroom and 16 three-bedroom. Each apartment will feature Energy Star-rated kitchen appliances, and on-site parking spaces will be provided for tenants. The project will offer affordable rent to tenants, ranging from 30 percent to 55 percent of area median income. A portion of the apartments will be set aside for public housing and Section 8.
"Baxter Park will create safe, decent, and affordable housing in close proximity to public transportation and jobs in Essex County," said HMFA Executive Director Anthony L. Marchetta. "I am pleased that HMFA played a role in getting this project off the ground. It truly represents our mission of increasing the availability of affordable housing for residents of the state."
The project is being developed by Michaels Development Company and Newark Housing Authority. Michaels Development Company is a leading affordable housing developer that has overseen $2.5 billion in development and substantial rehabilitation since 1973. Newark Housing Authority (NHA) is the largest public housing authority in New Jersey, currently operating and maintaining 8,000 scattered public housing units in 44 public housing developments. The mission of the NHA is to provide residents of the City of Newark with access to decent, safe and affordable housing.
The HMFA expects to award approximately $1.27 million annually in 4% Low Income Housing Tax Credits. The credits will generate close to $10.2 million in equity for the Baxter project.
HMFA is the administrator of federal tax credit programs for New Jersey. Low Income Housing Tax Credits are a dollar-for-dollar reduction in federal tax liability and act as a catalyst to attract private investment into the affordable housing market. The credits are sold to an investor by the developer, who then, though equity from the sale, is able to take out a smaller mortgage to help build the project and thereby able to charge more affordable rents. Currently, there are more than 32,000 housing units in the HMFA's portfolio that were developed with the help of Low Income Housing Tax Credits.
For more information on HMFA programs, please call 1-800-NJHOUSE or (609) 278-7400, or log on to http://www.nj-hmfa.com.