New Apartment Complex Provides 20 Affordable Rental Opportunities for Individuals with Special Needs
PATERSON, N.J. – The New Jersey Housing and Mortgage Finance Agency (HMFA) Executive Director Anthony L. Marchetta joined the New Jersey Community Development Corporation (NJCDC) today to celebrate the grand opening of Elm Street Apartments, a three-story affordable apartment complex for individuals with special needs. The HMFA, an affiliate of the New Jersey Department of Community Affairs (DCA), provided the development approximately $3.7 million in construction and permanent financing for the project from the agency’s Special Needs Housing Trust Fund (SNHTF).
“The Christie Administration is very proud to support housing developments including Elm Street Apartments that provide individuals with special needs secure, safe, permanent, and affordable housing in Passaic County that will strengthen the Paterson community,” said DCA Commissioner Richard E. Constable, III, who is Chair of the HMFA. “We are committed to helping the most vulnerable New Jerseyans, including those who are financially struggling with their housing needs.”
The project, with a total construction cost of approximately $5.6 million, not only provides affordable housing opportunities, but also has a positive economic impact on the greater Passaic County community. HMFA estimates that the project has generated approximately $8.9 million in one-time economic output, approximately 53 direct and indirect/induced full-time jobs, and $326,000 in state and local taxes during construction. Now completed, the project will continue to add value to the community by providing approximately $996,000 in ongoing economic output, 5 direct and indirect/induced full-time jobs annually, and approximately $56,000 in state and local taxes. Other funding sources for the construction of Elm Street Apartments include the City of Paterson HOME Funds, and financing from the Federal Home Loan Bank of New York (FHLBNY).
The DCA’s State Rental Assistance Program provided ten vouchers for this project. The vouchers are project based for a term of ten years, renewable for five years thereafter. The remaining ten vouchers were provided through the DCA’s Section 8 Housing Choice Voucher Program.
Elm Street Apartments is a newly constructed three-story building consisting of 14 studio apartments for youth aging out of foster care and six three-bedroom apartments for grandparents who are raising grandchildren with disabilities. Building amenities include an elevator, common laundry facilities, multi-purpose room, administrative offices, basement, and parking. The development replaces a city-owned homeless shelter that has long been demolished, and is located near Routes 19 and 80, downtown Paterson, and the commercial business district. This location provides the residents with easy access to additional social services, employment opportunities, educational institutions, grocery stores, retail outlets, places of worship, parks, and public transportation. Additionally, the property is located in the Greater Spruce Street Redevelopment Plan area, which the project developer has created with the support of the local community.
“Elm Street Apartments is a great example of how HMFA harnesses the power of partnerships with local housing developers/social service providers, municipalities, and the FHLBNY to promote affordable housing and community development opportunities across New Jersey,” said HMFA Executive Director Anthony L. Marchetta. “By providing significant capital to this noble project, we have fulfilled our mission to stabilize urban neighborhoods, contribute to the quality of life of older adults and individuals with special needs, and foster the economic development of our state.”
The SNHTF is administered by the HMFA and provides capital financing to create affordable, permanent supportive housing and community residences for individuals with special needs. The purpose of the fund is to develop special needs housing and residential opportunities as alternatives to institutionalization or homelessness for those who would benefit from these programs and to ensure the long-term viability of such housing.
New Jersey Community Development Corporation (NJCDC) is a private, non-profit community development and social service agency founded in 1994 with a mission of creating opportunities to transform lives in the City of Paterson.
For more information on HMFA programs, please call 1-800-NJHOUSE or (609) 278-7400, or log on to http://www.njhousing.gov/.