FOR IMMEDIATE RELEASE: Friday, March 11, 2016

 

 Brunswick Estates will provides 131 apartments for workforce families

Jersey City, NJ – New Jersey Housing and Mortgage Finance Agency (HMFA) Executive Director Anthony L. Marchetta joined New Jersey Economic Development Authority (NJEDA) executive staff, local officials and community leaders to celebrate the groundbreaking of Brunswick Estates, a 131-unit affordable rental community for working families in Jersey City, Hudson County. The HMFA, an affiliate of DCA, awarded the redevelopment project 4% federal Low Income Housing Tax Credits (LIHTC) that will generate approximately $13.2 million in private equity, and provided more than $27 million construction loan and permanent Conduit Bond financing. 

Currently occupied, Brunswick Estates comprises 18 apartment buildings two blocks apart located at 391 and 479 Montgomery Street. A total of 131 residences in two-, three-, four- and five-bedroom floor plans are situated within one-, two-, and three-story walk-up, garden-style, buildings. In addition, one central building, currently being used as a small medical office, maintenance and security, will be converted into a management office and community space for the residents with additional green spaces, a playground, a community garden, a covered bike rack, landscaping, and improved security.  

The rehabilitation project will repair normal wear and tear sustained over three decades since Brunswick Estates was first built, along with damage from Hurricane Sandy. The buildings and individual units will have immediate capital needs addressed. Exterior rehabilitation work will include the renovation of building façades, the installation of new playground equipment, the addition of green and landscaped spaces, installation of bike racks, the replacement of inefficient windows, repaving/restriping of all on-site vehicle parking spaces, and the installation of modern, sustainable A/C sleeves. The interior scope of work includes new Energy Star appliances, the overhauling of heating systems with energy-saving furnaces, sustainable fixtures, replacement of all fire protection devices, high-efficiency washers and dryers, and seven fully Accessible/ADA-compliant units. 

HMFA Executive Director Anthony L. Marchetta said, “WinnDevelopment will deliver extensive interior and exterior upgrades to the community while improving Jersey City’s Montgomery Street corridor. Also, Greater Bergen Community Action will expand resident access to include financial literacy programming, educating them on a variety of personal finance topics. This rehabilitation will improve quality of life across the board by upgrading the quality of housing, improving the overall aesthetic appeal and finally offering residents the opportunity to improve their own lives through education.” 

The project was also approved for assistance of up to $10 million over 10 years by the Board of the New Jersey Economic Development Authority (EDA) under the Economic Redevelopment and Growth (ERG) program.  Administered by the EDA, the ERG program was created to address revenue gaps in development projects in the form of a tax credit of up to 20% of total project costs and a bonus of an additional 10% (for a total of 30%) if the project constructs and reserves at least 10% of the residential units for moderate income housing. The total development cost for the project is $40.2 million. 

“The Christie Administration is committed to improving the quality of life for New Jersey residents through the preservation of quality affordable housing,” said DCA Commissioner Charles A. Richman, who also serves as Chairman of the HMFA.  “The rehabilitation of Brunswick Estates will provide much-needed affordable housing opportunities for working families have a positive economic impact on the greater Hudson County community.” 

During the construction period for this rehabilitation, no residents will be permanently displaced and temporary relocations during construction will be limited, mitigating the disturbance to tenants.  The majority of unit renovations will be done trade by trade, building by building. This allows for unit renovations to occur during the day, thereby requiring residents only to vacate their units during weekday, daytime hours.  These residents will be accommodated in a hospitality unit on-site, minimizing the disturbance to their everyday lives. Eight units will undergo substantial renovation in order to convert them to modern ADA-compliant units. 

All 131 units will be rental housing, targeting households at or below 60% of Area Median Income. Once rehabilitated, the unit mix of the property will stand at 40 two-bedroom units, of which 7 will be handicap-accessible; 58 three-bedroom units; 23 four-bedroom units; and 10 five-bedroom units. This unit mix ensures that 5% of the total units at Brunswick Estates are ADA-accessible and 2% are accessible to persons with Audio-Visual disabilities. 

HMFA estimates that the project will generate approximately $63 million in one-time economic output, defined as the total value of industry production, such as sales and business revenues. During construction, the project will support approximately 381 direct and indirect/induced full-time equivalent jobs, and generate nearly $2.3 million in state and local taxes. Once complete, Brunswick Estates will continue to add value to the community by providing approximately $7.1 million in ongoing economic output, 40 direct and indirect/induced full-time equivalent jobs, and approximately $402,000 in state and local taxes annually. 

“This massive project is evidence of our commitment to partner with Jersey City and the State of New Jersey in their efforts to preserve and create badly needed quality affordable housing communities,” said Gilbert Winn, CEO of WinnCompanies. “With the support of our public and private partners, WinnDevelopment looks forward not only to an extensive physical upgrade of the Brunswick Estates community but also to new services that will provide our residents new pathways to an improved quality of life.”

Economic Impact Analysis figures were estimated using multipliers derived from a 2013 study entitled “Economic and Fiscal Impacts of the New Jersey Housing and Mortgage Finance Agency’s Investment in Affordable Housing,” conducted by HR&A Advisors, Inc., a real estate and economic development consulting firm.

Founded in 1971, WinnDevelopment Company has acquired and developed real estate holdings in excess of $2.5 billion.  Winn currently operates 97,000 homes in over 500 communities across 23 states.  Their portfolio of projects includes affordable housing, market-rate housing, urban and suburban apartment communities, office buildings, retail, medical campuses and parking facilities.

For more information on HMFA programs, please call 1-800-NJHOUSE or (609) 278-7400, or visit www.njhousing.gov

CONTACT:
Tammori Petty
and Emike Omogbai
(609) 292-6055