The New Jersey Economic Development Authority board approved Economic Redevelopment and Growth tax credits for the purchase and renovation of Hamilton Square, a 68-unit mill-style, two-building apartment community located in the Great Falls Historic District of Paterson.
Co-applicants Hamilton Square Urban Renewal LLC and Soldier on Veterans Village VII LLC will use approximately $5.9 million to completely renovate kitchens and bathrooms, update aluminum windows, install new doors and high-grade vinyl floor or hardwood floors on the property, which consists of a three-story brick historic building built in 1814 and a four-story brick building built in 1997.
Additionally, the project will include common area and exterior renovations such as: conversion of the 1,500-square-foot vacant commercial space at 20 Mill St. into a community room, creation of a small fitness center, repairs to the elevators, installation of a new security system with cameras and execution of other repairs and upgrades to common areas, including the parking lot and fencing.
Located at 20 & 21 Mill St., the asset consists of mix of seven one-bedroom units, 54 two-bedroom units, and seven three-bedroom units, and parking spaces for tenants. Seven units within the property will be converted to full Americans with Disabilities Act compliance as part of the planned rehabilitation. Fifty units (71%) are currently occupied.
SOVV is a subsidiary of Soldier on Inc., a Massachusetts-based nonprofit committed to ending veteran homelessness. Soldier On was organized in 1994 to provide a continuum of programs to ensure that homeless veterans and their families have access to immediate and long-term housing with an array of support services delivered to them where they live. Soldier On will provide veteran referrals and supportive services to the veteran population at Hamilton Square, including securing affordable housing units, when available.
“The decision by Gov. Phil Murphy and the Legislature to extend the ERG program is enabling projects that will help communities and residents hit hardest by the pandemic recover while programs created by the ERA take shape,” NJEDA CEO Tim Sullivan said. “This project upholds several of the policy goals established under the ERA, particularly those that uplift our most vulnerable citizens by providing affordable and accessible housing options for veterans, and those with disabilities.”
The ground floor of 21 Mill St. has eight commercial spaces with a commercial parking lot that are not part of the project. The land and buildings will be broken into two parcels, with the applicants solely purchasing the residential portion and the commercial component remaining with the current owner.
The applicants are eligible for a base award of 20% of eligible project costs, plus an additional 20% (for a total of 40%) since the property is located in a Garden State Growth Zone. The project was approved for tax credits of 37.57% of eligible project costs of $16.8 million, not to exceed $6.3 million.
The application for the residential ERG program reopened on June 1, and is administered based on pre-existing ERG regulations and statutes, as amended by the ERA, which added new prevailing wage and minimum wage requirements.
