September 6, 2013 - Sandy Recovery - Christie Administration Commits $3 Million To Help Create Affordable Housing In Sandy-Impacted Counties
Christie Administration Commits $3 Million To Help Create Affordable Housing In Sandy-Impacted Counties
Funds Will Facilitate the Development of More Than 430 Affordable Housing Opportunities as Part of Community Development Block Grant Disaster Recovery Action Plan
Cape May Court House, NJ – As part of its ongoing efforts to revitalize Sandy-impacted counties and address affordable housing needs created or exacerbated by the storm, New Jersey Department of Community Affairs (DCA) Commissioner Richard E. Constable, III and New Jersey Redevelopment Authority (NJRA) Executive Director Leslie A. Anderson today announced the Christie Administration’s award of $3 million in federal Community Development Block Grant Disaster Recovery funds to cover the predevelopment costs of 433 affordable housing units.
NJRA is providing $500,000 in low-interest loans to the non-profit developers of each of six projects that will provide a total of 10 single-family rental homes and 423 apartment units of affordable housing. Today’s announcement of the award of $3 million from the Predevelopment Loan Fund for Affordable Rental Housing was made in Cape May Court House, which is the location of a four-acre site that will be developed into an affordable multi-family residential complex of 10 single-family homes by United Cerebral Palsy of Northern Central and Southern New Jersey. The homes will benefit special needs families in financial need.
“Affordable housing projects like the one here in Cape May Court House will have an important ripple effect in Sandy-impacted communities and will create urgently needed, safe and affordable housing for New Jersey families,” said DCA Commissioner Constable, whose Department is administering the distribution of CDBG Disaster Recovery funds for the State.
Other projects to receive assistance through the Predevelopment Loan Fund include the redevelopment of a site in the City of Newark into a 152-unit assisted living residence for senior citizens; redevelopment of a site in Fair Lawn, Bergen County, into a 64-unit senior housing complex; and redevelopment of three structures in Atlantic City into a 58-unit rental property for low- to moderate-income people aged 55 and older.
“The low-interest loans we are announcing today are supporting the redevelopment of these properties to support the ongoing efforts to restore and rebuild the economy and vibrancy of impacted communities throughout the state,” said NJRA Executive Director Anderson. “These funds assist non-profit developers at the early stages of development to allow them to complete site preparation work as well as work to finalize construction and permanent financing.”
Projects receiving Predevelopment Loan Fund for Affordable Rental Housing funding must provide affordable housing units. Eligible uses of the 1-percent-interest loans include: project feasibility studies, environmental studies, engineering studies, architectural fees, legal fees, and other soft costs. Non-profit developers must be in good standing with the State of New Jersey per the State’s annual registration process in addition to meeting other NJRA requirements.
The Predevelopment Loan Fund is part of the New Jersey Disaster Recovery Action Plan that outlines how the State will utilize $1,829,520,000 in Community Development Block Grant (CDBG) Disaster Recovery funds provided by the U.S. Department of Housing and Urban Development (HUD) to assist in the recovery and rebuilding of Sandy-affected counties. The nine most impacted counties are: Atlantic, Bergen, Cape May, Essex, Hudson, Middlesex, Monmouth, Ocean and Union.
Today’s announcement follows last month’s commitment of more than $135 million in CDBG Disaster Recovery funds to help create approximately 2,250 affordable housing opportunities in the nine most impacted counties.
Additional Predevelopment Loans to finance affordable housing projects are expected to be approved soon by NJRA. It is anticipated that the Predevelopment Loan Fund will ultimately be able to help create a total of 1,000 new units of affordable housing for New Jersey residents over the next two years.
The New Jersey Redevelopment Authority, a DCA affiliate, is an independent authority committed to revitalizing urban New Jersey. NJRA invests financial and technical resources into redevelopment projects to ensure that projects are urban-focused, neighborhood-based and investment-driven.
NJRA is currently accepting applications for the Predevelopment Loan Fund for Affordable Rental Housing Fund. Non-profit developers can view the program guidelines and the application online at http://www.njra.us/njra/site/default.asp. Developers can call (609) 292-3739 for additional information.