|For Immediate Release:|
Christie Administration Marks Groundbreaking of Affordable Housing Project Assisted with Federal Sandy Recovery Funds
EDISON, N.J. – The New Jersey Housing and Mortgage Finance Agency (HMFA), an affiliate of the New Jersey Department of Community Affairs (DCA), today announced the groundbreaking of Kilmer Homes, a 120-unit affordable housing development in Edison, Middlesex County, one of the nine counties most impacted by Superstorm Sandy as determined by the U.S. Department of Housing and Urban Development (HUD). The project has been awarded federal Sandy Recovery funds, and thirty units will be set aside for homeless households.
The HMFA awarded each phase of the two-phased project approximately $5 million in Community Development Block Grant Disaster Recovery (CDBG-DR) funds for a grand total of approximately $10 million through the Fund for Restoration of Multifamily Housing (FRM), and the Sandy Special Needs Housing Fund (SSNHF). The FRM program provides 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 HUD-designated counties in an effort to increase the supply of affordable housing stock in these areas in the aftermath of Superstorm Sandy. The SSNHF provides similar financial assistance to developers who are constructing permanent supportive rental housing units for special needs populations. Additional HMFA financing included the leveraging of the federal Low Income Housing Tax Credits (LIHTC), an existing affordable housing program. Through a competitive process, both phases of the project were awarded the 9% LIHTC that will generate approximately $8.8 million in private equity, for a grand total of approximately $17.7 million. The Agency also provided both phases approximately $7.2 million in construction and permanent financing, for a grand total of approximately $14.4 million.
"Kilmer Homes will empower working families, the homeless, as well as Sandy-impacted households in the Edison area, including Woodbridge, Sayreville, and South River, to live in safe, decent, and permanent housing,” said DCA Commissioner Richard E. Constable, III, who also serves as Chairman of the HMFA. “Sandy recovery programs like FRM and SSNHF help rebuild and restore a lasting foundation for New Jersey after the storm, one housing community at a time.”
As a result of Superstorm Sandy, Edison experienced significant flooding and wind damage. Two pumping stations in Edison and Sayreville that service the Middlesex County Utilities Authority (MCUA) treatment plant were severely damaged by the storm, sending over 1 billion gallons of untreated sewage into the Raritan River and Raritan Bay. The Sayreville pump was so badly damaged that it was still sending untreated sewage into the river as of January 2013. Additionally, wind gusts near 86 mph knocked down trees and power lines that triggered explosions, and contributed to power outages that lasted for weeks. Edison also ranked in the top 40% of Sandy impacted New Jersey municipalities in a Rutgers study of the storm’s impact, available at the NJ DataBank website.
The two-phased project, which will cost a total of approximately $36.9 million to develop, will have a positive economic impact on the community. HMFA estimates that the project will generate approximately $58.6 million in one-time economic output and create approximately 351 full-time jobs during construction. Upon completion, the project will continue to benefit the community by providing over $6.5 million in ongoing economic output and an estimated 37 full-time jobs annually. Other funding sources for the development of Kilmer Homes include the Middlesex County Homeless Funds.
“We are so pleased to use the state’s Sandy recovery funds to finance both phases of Kilmer Homes, which truly represent HMFA’s core mission to provide safe, decent, and affordable housing in New Jersey,” said HMFA Executive Director Anthony L. Marchetta. “This project will transform a vacant military base into a vibrant housing community that better meets the needs of Edison, while creating jobs, enhancing the town, and attracting further economic development to the area.”
The development, a partnership between The Alpert Group, LLC, Edison Affordable Housing, Inc., Monarch Housing Associates, Inc., and Triple C Housing, will be located at the corner of Truman Road and Road 2 in Edison, near the Catholic Charities Ozanam Shelter, Middlesex County Vocational and Technical School’s Piscataway Campus, and within two miles from the police station and municipal building. Rutgers University will operate a free shuttle service open to the community about a half-mile from the site.
The units will be available to those earning less than 60% of the Area Median Income (AMI), and 30 units will be set aside for homeless individuals assisted by project-based section 8 housing vouchers. During the first three months of lease-up, priority will be given to individuals who registered for Federal Emergency Management Agency (FEMA) assistance or who rented an apartment or owned a primary residence that was no longer habitable because of Sandy damage. Triple C Housing will provide case management for the homeless households and coordinate support services for the 30 supportive housing units at no cost to residents. Upon completion, Kilmer Homes will be Energy Star-certified, and meet HMFA’s Green Future requirements.
For more information on HMFA programs, please visit www.njhousing.gov.