82 Affordable Units Funded through HMFA’s CHOICE Program
MANCHESTER, NJ – Autumn Ridge at Manchester, an 82-unit condominium community including affordable homes, recently celebrated its grand opening with New Jersey Housing and Mortgage Finance Agency (HMFA) Executive Director Anthony L. Marchetta, local officials and representatives of nonprofit developer Homes For All, Inc.
The $21.1 million project included approximately $8 million in construction financing from the HMFA, as well as $1.06 million from the agency’s Choices in Home Ownership Incentives Created for Everyone (CHOICE) program. The CHOICE program provides subsidy and construction financing for the development of single-family, for-sale housing units that meet the economic development needs of New Jersey’s towns and cities.
“HMFA’s CHOICE program serves as a catalyst for the creation of viable homeownership markets in municipalities statewide,” said HMFA Executive Director Marchetta. “In addition to emerging market for-sale homes, this project also helps boost the availability and accessibility of safe, decent and affordable housing for families in New Jersey.”
The value of the CHOICE program, to both developers and homebuyers, is significant. The agency provides 50 percent of the construction loan with the balance provided by one of HMFA’s approved, participating lenders. The actual CHOICE subsidy is provided by the agency to fill the gap between the cost to build a housing unit and its achievable market sale price. Developers can secure up to $50,000 to build each new home.
CHOICE provides funding in areas where the market price of a for-sale unit is less than the reasonable cost of acquiring the land and constructing the unit.
Autumn Ridge includes 82 townhome-style, two-story condominiums spread throughout 11 buildings. There are 17 low- to-moderate-income units, which include 10 two-bedroom and seven three-bedroom units. Prices for the low-income units range from $110,000 to $138,000. Prices for the moderate-income units range from $139,000 to $210,000. All market rate units have three bedrooms, with a price range of $255,000 to $266,000.
Units include a laundry room and covered porches. All three bedroom units have a two-story foyer and a one-car garage. There is also an outdoor open area with a walking path and benches. The neighborhood has a mix of older and new homes, restaurants, businesses and several different churches and is in close proximity to stores, schools, parks, public transportation and other businesses.
Since 1986, Homes for All, Inc., a Toms River-based nonprofit affordable housing developer, has been committed to providing affordable housing and support services for low- and moderate-income families.
HMFA estimated that the project generated approximately $33.5 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 201 direct and indirect/induced full-time equivalent jobs, and generated nearly $1.2 million in state and local taxes. Now completed, Autumn Ridge at Manchester is expected to continue to add value to the community by providing approximately $3.7 million in ongoing economic output, 21 direct and indirect/induced full-time equivalent jobs, and approximately $211,700 in state and local taxes annually.
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.
For more information on HMFA programs, please visit www.njhousing.gov