More Than 5,200 Total Affordable Housing Units Created Through the Fund for Restoration of Multifamily Housing Program

TRENTON, NJ – To advance its mission of financing safe, decent, affordable housing in the State of New Jersey, the Board of the New Jersey Housing and Mortgage Finance Agency (HMFA) recently awarded $136 million in federal Sandy recovery funds to create 902 affordable housing units in Atlantic, Monmouth and Ocean counties – the three counties hardest hit by Superstorm Sandy – for low- and middle-income families and senior citizens.

Funding for the housing units is made possible with federal Community Development Block Grant Disaster Recovery (CDBG-DR) dollars through the Fund for Restoration of Multifamily Housing (FRM) Program. The FRM Program was created in the aftermath of Superstorm Sandy to provide qualified housing developers with subsidies in the form of zero- and low-interest loans to finance the development of affordable housing in the nine counties the federal government designated as most impacted by Sandy. The FRM funds awarded on July 28, 2016, are included in the program’s third round of funding. The chart below provides information about the FRM Program’s funding rounds.

"The FRM Program is helping to address an affordable housing demand that was magnified when Sandy hit our state," said New Jersey Department of Community Affairs (DCA) Commissioner Charles A. Richman, who also serves as Chairman of the HMFA Board. "By creating more housing that people can afford, the program is helping to moderate and stabilize rental prices, which soared in the aftermath of the storm."

The 12 projects awarded FRM funds in Round 3B were selected in a competitive process based on criteria detailed in FRM Program guidelines that were approved by the U.S. Department of Housing and Urban Development. The FRM Program also allows developers to apply directly to HMFA for low-interest mortgage financing and federal Low Income Housing Tax Credits made available through HMFA.

"We are pleased to spearhead the State’s efforts to build affordable housing in areas of New Jersey affected by Sandy," said HMFA Executive Director Anthony Marchetta. "The FRM Program has been creating thousands of new affordable units since 2013 and continues to positively contribute to the economy, particularly in communities hardest hit by the storm."

The total development cost of the 12 projects recently awarded FRM funds is $249.9 million. The HMFA estimates that these projects will generate more than $396 million in one-time economic output, 2,374 direct and indirect/induced full-time jobs, and more than $14.4 million in state and local taxes during construction. Once completed, HMFA estimates the 12 properties will generate more than $44.2 million in ongoing economic output, 249 direct and indirect full-time jobs, and over $2.4 million in state and local taxes annually. These 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.

At all FRM-financed properties, during the first 90 days of lease up, priority for residency is provided to Sandy-impacted individuals who have been displaced by or experienced major or severe storm damage from Superstorm Sandy.

Sandy-impacted residents can learn more about affordable housing projects funded with Sandy recovery dollars by visiting the New Jersey Housing Resource Center at www.njhrc.gov. The database is free and easy to use. On the homepage, individuals can click on "Priority Housing for Sandy-Impacted Residents."

People can also find information by visiting www.renewjerseystronger.org and clicking on "Priority Housing for Sandy-Impacted Residents Available" at the top of the webpage. The website provides such information as where projects are located, the total number of housing units, contact information for the leasing office, website/phone number for people to submit applications, and the date applications are being accepted. New information is added regularly as it becomes available.

The 12 projects awarded FRM funds in Round 3B are as follows:

All HMFA Board actions will take effect at the expiration of the 10-day statutory period for the Governor’s review and consideration of the meeting minutes.

For more information on HMFA programs, please visit www.njhousing.gov.