Lieutenant Gov. Sheila Oliver joined L+M Development Partners, Type A Projects and MSquared this week to lay the foundation for the development of 78 affordable rental apartments that will serve low- and moderate-income households in the Fairmount neighborhood of Newark in partnership with University Hospital. The project, developed under the New Jersey Housing and Mortgage Finance Agency’s Hospital Partnership Subsidy Program, functions as a gateway to University Hospital and is designed to improve resident health outcomes.
“This is an exciting day for the city of Newark, University Hospital and the state of New Jersey, as this innovative hospital and housing partnership designed to help our most vulnerable populations moves forward,” Oliver, who serves as commissioner of the Department of Community Affairs and NJHMFA board chair, said. “There is a direct correlation between limited access to health care and homelessness, and these new supportive housing rental units with access to a full-service health clinic are going to help break the cycle of homelessness in Newark.”
Located on a portion of the property at 250 Georgia King Village on West Market Street in the city’s Fairmount neighborhood, the $42 million project is being financed through a combination of public and private capital, including $18 million in tax credit equity from Wells Fargo, $22 million in mortgage financing from NJHMFA, $1.6 million from the NJHMFA Special Needs Housing Trust Fund, $6 million from the Hospital Partnership Subsidy Program and $3.5 million from the Multifamily Rental Housing Production Fund, as well as $3 million from University Hospital, $300,000 in HOME funds from the city of Newark and $300,000 in HOME funds from Essex County.
Read more from ROI-NJ:
- University Hospital, L+M helping to bring program that combines housing, health care to Newark’s West Ward
- Transformative Georgia King Village project in Newark gets $42M in funding
The development, designed by Alex Merlucci at Inglese Architecture + Engineering, will provide 78 affordable rental apartments that will serve low- and moderate-income households. Sixteen units will be reserved for homeless individuals and families, and these will be supported by project-based rental vouchers provided through the Department of Community Affairs’ Housing Choice Voucher Program. The project will also be a recipient of 30 project-based rental vouchers from the Newark Housing Authority. In addition, the building will include a ground-floor clinic and hospital office space operated by University Hospital. This wellness center will enhance social services throughout the neighborhood by providing much-needed outpatient medical care to an at-risk population.
The Hospital Partnership Subsidy Program stems from the recognition that access to quality housing is critical to maintaining good health and that hospitals are crucial anchor institutions well-positioned to advance housing in conjunction with health care. Under this program, NJHMFA matches funding contributions from participating hospitals to provide affordable rental apartments for low- and moderate-income families, as well as apartments with access to supportive and wrap-around services for residents with special needs.
