November 15, 2013 CHRISTIE ADMINISTRATION AWARDS NEIGHBORHOOD REVITALIZATION TAX CREDIT PLANNING GRANT TO HANDS, INC. IN ORANGE
CHRISTIE ADMINISTRATION AWARDS NEIGHBORHOOD REVITALIZATION TAX CREDIT PLANNING GRANT TO HANDS, INC. IN ORANGE
$985,000 Award Will Assist Nonprofit in Developing Residential and Commercial Space in the Berg Hat Factory
TRENTON – New Jersey Department of Community Affairs (DCA) Commissioner Richard E. Constable, III today announced a $985,000 Neighborhood Revitalization Tax Credit (NRTC) grant award to HANDS, Inc. to redevelop two buildings in Orange. This project will include 12 loft condominium units and 11,000 square feet of commercial space. Since the creation of the NRTC program, 24 corporations have contributed $58,081,000 to fund 24 neighborhood revitalization plans in 13 urban municipalities throughout the state.
“The Neighborhood Revitalization Tax Credit program continues to have positive impacts in New Jersey’s urban neighborhoods and has allowed the state to work with local organizations to foster revitalization in communities like Orange,” said Commissioner Constable. “Through this program, the Christie Administration will continue to support nonprofits creating affordable housing and economic development opportunities that contribute to the overall revitalization of neighborhoods.”
HANDS will us the NRTC grant to redevelop two vacant buildings within the former F. Berg Hat Factory Complex in the Central Valley Redevelopment Area. The first property, the former Powerhouse building will be rebuilt to contain 6,000 square feet of commercial space which HANDS will own and operate. The second property, the 1907 Hat Factory building, will be developed through a partnership with HANDS and the Community Asset Preservation Corporation, a subsidiary of New Jersey Community Capital, which shares HANDS’s mission to stabilize and revitalize communities. The 1907 Hat Factory building will contain 12 two-bedroom “emerging-market” loft condominiums on its upper floors, which will sold to buyers without income restrictions. These units will have no connection with HMFA’s CHOICE Program. A commercial condominium on the first two floors of the building will be owned by HANDS and operated as an arts-based enterprise, including work spaces for artists.
Other communities that have benefited from the NRTC program this year include the City of Camden’s Waterfront South neighborhood, the City of Elizabeth’s Elizabethport neighborhood and Paterson’s Greater Spruce Street neighborhood.
The NRTC program is administered by the Division of Housing and Community Resources and provides community based nonprofit groups with corporate funding for implementing neighborhood revitalization plans. The nonprofit organization agrees to allot at least 60 percent of the funds to housing and/or economic development activities. The remainder may be used for complementary activities such as supportive services, improvements to streetscape and public open space, and community outreach activities.
Funds for this project were contributed by JPMorgan Chase, PNC Bank, Selective Insurance Co. and Valley National Bank. HANDS has had an approved NRTC plan since 2004 for the Valley Neighborhood of Orange.
Companies that fund the program receive a 100 percent tax credit against various state taxes for their investments in revitalizing low-and moderate-income neighborhoods in eligible cities.