FOR IMMEDIATE RELEASE: Monday, June 29, 2015


 

GARWOOD, NJ The New Jersey Housing and Mortgage Finance Agency (HMFA) Executive Director Anthony L. Marchetta recently joined state and local officials to celebrate the grand opening of the Village at Garwood, a 72-unit senior rental community in Garwood, Union County, for very low-income senior citizens ages 62 and over. The HMFA, an affiliate of the New Jersey Department of Community Affairs (DCA), provided the project $11.1 million in construction financing, and approved the project for the 4% federal Low Income Housing Tax Credits (LIHTC) of up to $5.6 million over ten years.

 

"We are pleased to see the development of the Village at Garwood which will enable the Borough’s seniors to age comfortably in place," said DCA Commissioner Charles Richman, who also serves as Chairman of the HMFA board." We are committed to making these kinds of investments that transform underutilized sites into thriving senior affordable housing communities."

 

The Village at Garwood is situated on a 1.6-acre site within walking distance from a full-service grocery, pharmacy, restaurants, banks, cleaners, hair salons, and public transportation. It is an elevator-serviced facility with 71 one-bedroom units for seniors, and one rent-free two-bedroom unit for the building superintendent. All 71 rental units have project-based rental assistance through the HUD Section 202 Capital Advance Program and Project Rental Assistance Contract, and residents pay 30% of their income towards rent and utilities with net rents at approximately $300 per month. Each unit has Energy Star rated appliances that include a range, refrigerator, and air conditioning. Project amenities include a laundry room, community room, and a full commercial kitchen. The proposed building will also have space allocated for a social services coordinator office and administrative offices.

 

The project, which involved the replacement of a vacant school and convent building with a newly constructed three-story apartment complex, not only provides affordable housing opportunities for seniors, but also has a positive economic impact on the greater Union County community.

 

HMFA estimates that the project, which cost approximately $20.6 million to develop, generated approximately $32.7 million in one-time economic output, defined as the total value of industry production, such as sales and business revenues. While during construction, the project supported approximately 195 full-time direct and indirect/induced equivalent jobs, and $1.2 million in state and local taxes. Whereas now completed, the project will continue to add value to the community by providing approximately $3.6 million in ongoing economic output, 20 direct and indirect/induced full-time equivalent jobs, and approximately $206,000 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.

 

 

"I am so pleased that the HMFA, New Jersey’s affordable and workforce housing bank, was able to provide the critical financing that has brought the Village at Garwood to fruition," said HMFA Executive Director Marchetta. "The Low Income Housing Tax Credit Program has helped produce more than 40,000 affordable housing opportunities for New Jersey’s citizens since its inception in 1986, and is one of the most successful and efficient federal housing programs ever created to incentivize the private market to invest in the creation or rehabilitation of quality affordable rental housing that enhances our neighborhoods."

 

Annually, states are allocated Low Income Housing Tax Credits by the federal government on a per-capita basis. HMFA, as the administrator of the federal Low Income Housing Tax Credit Program in New Jersey, allocates approximately $20 million in 9% credits annually, which generates over $180 million in equity for the development of affordable housing in the state.

 

Other funding sources for the development of the Village at Garwood include the Section 202 Capital Advance Program funds and a Predevelopment Grant from the U.S. Department of Housing and Urban Development (HUD), a Sponsor’s Equity, and financing through the Federal Home Loan Bank of New York.

 

Westfield Senior Citizens Housing Corporation, the project developer, is a 501c (3) nonprofit organization established in 1975 to acquire, construct, and operate affordable housing for low- and very low-income senior citizens. The mission of Westfield Senior Housing is to offer housing and other services, including recreation, transportation, social worker support, and special events to enrich the lives of its elderly residents.

 

For more information on HMFA programs, please visit

 

 

www.njhousing.gov

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CONTACT:
Tammori Petty or
Emike Omogbai
(609) 292-6055