Christie Administration Marks Grand Opening of Baxter Park in Newark
For Immediate Release:
February 22, 2013
NEWARK, N.J. – New Jersey Housing and Mortgage Finance Agency (HMFA) Executive Director Anthony L. Marchetta today joined City of Newark Mayor Cory Booker and federal, state, and local officials for the grand opening of Baxter Park, an affordable apartment community located at 2 Wellington Way 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 $16.3 million for the project. Baxter Park was also awarded federal Low Income Housing Tax Credits, which will generate approximately $12.4 million in private equity.
“Baxter Park’s modern apartments, retail space and parkland are contributing to the City of Newark’s revitalization efforts,” said DCA Commissioner Richard E. Constable, III, who is Chair of the HMFA. “We are proud to be involved in affordable housing projects such as this because they are community assets that bring vitality to neighborhoods.”
Baxter Park consists of two four-story apartment buildings with 90 affordable housing units, of which 4 are one-bedroom, 70 two-bedroom and 16 three-bedroom. Each apartment includes sustainable design features such as energy efficient kitchen appliances and energy efficient heating and cooling systems to meet Energy Star program requirements. The project offers affordable rent to tenants, ranging from 30 percent to 55 percent of area median income. Some of the apartments have been set aside for public housing and Section 8.
“The HMFA is pleased to join in the creation of affordable housing for residents in Newark’s emerging development area, which will enhance the quality of life for this community,” said HMFA Executive Director Anthony L. Marchetta. “Baxter Park truly represents our mission of increasing the availability of safe, decent, and affordable housing for residents of the state.”
The project was 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 various public housing units in 44 public housing developments.
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, through 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, log on to http://www.nj.gov/dca/hmfa/.