PATERSON, N.J. – The New Jersey Housing and Mortgage Finance Agency (HMFA), an affiliate of the New Jersey Department of Community Affairs (DCA), celebrated today the grand opening of Alexander Hamilton III, a 50-unit newly constructed apartment community built on the site of a former public housing complex by the same name in the City of Paterson, Passaic County. The HMFA provided the project with $11.8 million in funding through its Multifamily Conduit Bond Program, and awarded the project 4% federal Low Income Housing Tax Credits (LIHTC) that generated approximately $7.9 million in private equity.
“We are excited to announce the opening of Alexander Hamilton III, which is part of the City of Paterson’s multi-phased neighborhood revitalization plan to transform a former public housing project into a vibrant, mixed-income housing community for the city’s hard-working families,” said DCA Commissioner Richard E. Constable, III, who also serves as Chairman of the HMFA. “The New Jersey Housing and Mortgage Finance Agency’s Multifamily Conduit Bond Program, which financed the project, is an innovative financing mechanism that developers can utilize to build quality affordable housing.”
Alexander Hamilton III, with approximately $22.5 million in total development costs, will not only provide affordable housing opportunities for New Jersey families, but will continue to have a positive economic impact on the Passaic County community. HMFA estimates that the project generated approximately $35.7 million in one-time economic output and created approximately 214 full-time jobs during construction. Now completed, the project will continue to add value to the community by providing more than $4 million in ongoing economic output and approximately 23 full-time jobs annually. Additional funding sources for the project included a HUD HOPE VI Grant, HUD Replacement Housing Funds, and the City of Paterson HOME Funds.
Alexander Hamilton III, which is located close to downtown Paterson, consists of 50 one-, two-, three-, and four-bedroom units, all available to families at or below 60% of the Area Median Income. Among these units, three are wheelchair-accessible and equipped to accommodate hearing and vision impaired individuals. Unit amenities include washer and dryer, dishwasher, refrigerator, stove, exhaust hoods, HVAC, carpet, ceramic tile in bathroom, storage sheds, security cameras, cable/internet access, sprinklers, and an on-site management and maintenance office. In addition to public transportation, which is easily accessible from the site, there are 84 parking spaces available for tenants and their guests.
“I am so pleased that the HMFA could provide the critical financing that brought Alexander Hamilton III to fruition,” said HMFA Executive Director Anthony L. Marchetta. “Under the HMFA’s Multifamily Conduit Bond Program, well-capitalized developers can benefit from the most competitive interest rates, Agency-provided tax-exempt financing, and Low Income Housing Tax Credits.”
Since the program’s inception in 2011, more than $310 million of Conduit bonds have been issued, while generating $1.5 million in fee income for HMFA in 2012, and $3.9 million in 2013. Up to $8 million of Conduit fee income is projected in 2014.
For more information on HMFA programs, please visit www.njhousing.gov.