Housing Project to Create 186 Apartments at the Corner of Beachway and Raritan Avenues
KEANSBURG – (RealEstateRama) — New Jersey Housing and Mortgage Finance Agency (HMFA) Executive Director Anthony L. Marchetta recently joined elected state and local officials and community leaders to celebrate the groundbreaking of Keansburg Mixed Income, a project that features an eight-story high-rise complex of 186 rental apartments. The new residences will be affordable and market-rate. The developer is RPM Development LLC located in Montclair.
Each apartment will be equipped with stainless steel Energy Star-rated appliances, including a dishwasher; carpeting; and individually-controlled high-efficiency heating and cooling. Community amenities include on-site parking, laundry facilities, a community room and a second level open space plaza overlooking Raritan Bay. Green space will be available in a community court-yard.
Keansburg Mixed-Income’s waterfront location on Lower New York Bay is across from the Keansburg Amusement Park and two blocks from Runaway Rapids, a water park. During the summer season, visitors flock to these attractions and to a boardwalk that runs along the beach. Keansburg is close to local shopping outlets including supermarkets, restaurants and retail centers.
“Projects such as Keansburg Mixed-Income are central to HMFA’s mission of building strong quality houses that contribute to the health, safety and vibrancy of communities,” said HMFA Director Marchetta. “For example, the families who reside here will shop at local businesses, enhancing economic activity in the Borough, which is a win-win for everyone.”
Located on the corner of Beachway and Raritan Avenues, Keansburg Mixed-Income comprises 66 one-bedroom units, 97 two-bedroom units and 23 three-bedroom units. Two of the three-bedroom units will be non-revenue units reserved for building superintendents.
The HMFA, an affiliate of the New Jersey Department of Community Affairs (DCA), awarded the affordable housing project 4% Low Income Housing Tax Credits (LIHTC), which is expected to generate $11.3 million in private equity, and $35 million in construction and permanent financing through the Agency’s Conduit Bond program. Another $3.3 million in construction and permanent loan financing was provided by HMFA’s Multifamily Rental Financing Production Fund. Additionally, the project was awarded $18.8 million in Sandy recovery dollars through the Fund for Restoration of Multifamily Housing (FRM) Program, which provides 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 the most impacted by the storm. Moreover, the New Jersey Economic Development Authority-Economic and Redevelopment Grant Funds (EDA-ERG) awarded the development approximately $15.3 million.
HMFA estimates that the $65.4 million project will generate more than $103.6 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 621 direct and indirect/induced full-time equivalent jobs, and more than $3.7 million in state and local taxes. Once complete, the project will continue to add value to the community by providing approximately $11.5 million in ongoing economic output, 65 direct and indirect/induced full-time equivalent jobs, and approximately $654,000 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.
RPM Development, LLC is a longtime HMFA partner and has developed approximately 3,000 affordable housing units.
During the first 90 days of lease up at Keansburg Mixed Income, priority for residency will be given to Sandy-impacted individuals. It is anticipated that apartments will be available in December of 2017.
For more information on HMFA programs, please visit www.njhousing.gov.