Jersey City, NJ –- (RealEstateRama) — New Jersey Housing and Mortgage Finance Agency (HMFA) Executive Director Anthony L. Marchetta today joined the Jersey City Housing Authority, representatives of the Michaels Development Company, and local officials to celebrate the grand opening of the Catherine Todd Senior Living Center, a senior housing project financed with the help of Superstorm Sandy recovery funds.
The $24 million project involved the substantial rehabilitation of a 10-story vacant building on Montgomery Street to provide 68 affordable units for seniors, including five units set aside for homeless residents who are 62 years of age and older. The development, located in a ready to grow area and metropolitan planning area, is the first phase of a revitalization effort consisting of 430 apartments.
The HMFA provided the project with $9.4 million in construction and permanent financing through its Multifamily Conduit Bond Program, and awarded the project 9 percent federal Low Income Housing Tax Credits, which generated approximately $11.7 million in private equity. The project also received $5.7 million in federal Community Development Block Grant (CDBG) Disaster Recovery funds through the HMFA’s Fund for Restoration of Multifamily Housing (FRM) program, which was created in the aftermath of Sandy to provide for-profit and non-profit housing developers an opportunity to secure zero-interest and low-interest loans to finance the development of affordable housing in the nine counties most impacted by the storm.
As of June, HMFA has funded approximately 5,200 housing units through the FRM program. Of these, 4,560 units are for households of low-to-moderate-income. HMFA hopes to receive federal approval later this year to provide a fourth round of FRM funding.
“Today’s grand opening demonstrates that New Jersey continues to make a significant investment in creating affordable housing in areas hard hit by Sandy,” said New Jersey Department of Community Affairs (DCA) Commissioner Charles A. Richman, whose department administers most of New Jersey’s Sandy recovery initiatives and who also serves as chairman of the HMFA board. “The Catherine Todd Senior Living Center is providing good quality apartments to senior citizens, including those who may have been affected by Sandy, at a monthly cost they can comfortably afford. Residents are also getting the peace of mind that comes with living in a community with supportive services.”
During the first 90 days of lease up, priority for residency was given to individuals who were 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 and clicking on “Priority Housing for Sandy-Impacted Residents,” which will take visitors to a site listing flyers on available housing by county.
Catherine Todd Senior Living Center features a mix of one- and two-bedroom apartments and also includes a large multi-purpose room, warming kitchen, computer learning center, media/game room, onsite laundry facilities, and a living room which serves as a quiet reading and visiting room. The development is also close to public transportation, employment centers, shopping and business districts.
“This project combines a unique investment of funding from HMFA’s Conduit Bond program, Sandy recovery assistance, and very competitive Low Income Housing Tax Credits, which leveraged additional dollars,” said HMFA Executive Director Marchetta. “Such Innovative financing, creative vision, and community input are exemplary of HMFA’s investments throughout New Jersey.”
The developer, Michaels Development Company of Marlton, NJ, has more than 40 years of experience in producing quality affordable housing. Michaels’ sister company, Interstate Realty Management, is providing property management services at Catherine Todd, ensuring that the community remains a quality asset to the neighborhood.
Extensive supportive services are being provided to residents through Interstate Realty Management’s strategic partnership with the non-profit organization Better Tomorrows. The supportive services include case management; linkages to health care, transportation and legal services; and educational and financial literacy programs. All services are geared to enabling residents to age in place.
HMFA estimates that the project during construction generated approximately $38 million in one-time economic output, defined as the total value of industry production, such as sales and business revenues. While it was being built, the project also supported approximately 229 direct and indirect/induced full-time equivalent jobs, and generated nearly $1.4 million in state and local taxes. Now complete, the Catherine Todd Senior Living Center will continue to add value to the community by providing approximately $4.3 million in ongoing economic output, 24 direct and indirect/induced full-time equivalent jobs, and approximately $240,700 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 the Fund for Restoration of Multifamily Housing and other HMFA programs, please visit www.njhousing.gov.