May 9, 2013 - Christie Administration Announces $2 Million in State Financing for Affordable Housing Project in Winslow Township
Christie Administration Announces $2 Million in State Financing for
TRENTON, N.J. – New Jersey Department of Community Affairs (DCA) Commissioner Richard E. Constable, III, Chair of the New Jersey Housing and Mortgage Finance Agency (HMFA), and HMFA Executive Director Anthony L. Marchetta today announced the HMFA is providing $2.3 million in permanent mortgage financing and an allocation of federal Low Income Housing Tax Credits to Winslow Cross Creek, an affordable housing community in Camden County’s Winslow Township. Winslow Cross Creek, which recently broke ground, will offer housing for low-to-moderate-income families and individuals with special needs.
“Winslow Cross Creek is a wonderful addition to Winslow Township as it will provide residents in the community with access to safe, decent, affordable housing,” said DCA Commissioner and HMFA Chair Richard E. Constable, III. “My sincere congratulations go out to the development team who successfully transformed a vision into a reality.”
Winslow Cross Creek is the second of a three-phase project that, when completed, will provide 49 townhouse-style affordable housing opportunities, five of which will be set aside for special needs residents in Camden County. This phase of the project will consist of eight two-story buildings with two, three, and four-bedroom units with monthly rents ranging from $929 to $1,168. Each unit will include kitchen appliances and washer and dryer hookups. A common area for all residents will feature clubhouse, barbeque and family areas.
The project will be affordable to families making less than 60% of the Area Median Income (AMI). It will also include rental assistance through the New Jersey Division of Mental Health and Addiction Services for the five units set aside for individuals with special needs. Supportive services for special needs residents will be provided through Collaborative Support Programs of New Jersey, Inc.
“The HMFA is pleased to provide Winslow Cross Creek with financing, which will facilitate the development of permanent affordable housing opportunities for individuals and families in need,” said HMFA Executive Director Anthony L. Marchetta. “This project truly represents our mission of increasing the availability of affordable housing for residents of the state.”
In addition to the HMFA permanent mortgage of $2.3 million, Winslow Cross Creek will be financed with $9.6 million in equity generated by the sale of Low Income Housing Tax Credits, as well as a construction loan through Colonial Bank for a total development cost of approximately $12 million.
HMFA is the administrator of the federal Low Income Housing Tax Credits for New Jersey. These credits are a dollar-for-dollar reduction in federal tax liability and act as a catalyst to attract private investment into the affordable housing market. The credits are sold to an investor by the developer who then, through equity from the sale, is able to take out a smaller mortgage to help build the project and is thereby able to charge more affordable rents. Currently, there are more than 500 projects statewide in HMFA’s portfolio that contain over 32,000 tax credit housing units that were developed with the help of Low Income Housing Tax Credits.
New Jersey is annually allocated approximately $19 million in low housing income tax credits. The sale of the credits produces over $170 million in project equity.
For more information on HMFA programs, please call 1-800-NJHOUSE or visit www.njhousing.gov.