Two residential development projects in underserved North Jersey communities – both designed for senior housing – were approved Wednesday for tax credits under the Aspire Program of the N.J. Economic Development Authority.
The two projects, which, will create a total of 170 residential units in Newark and Union City, are as follows:
· Terrell Homes, at 91-97 Chapel Street in Newark, was approved for up to $8.9 million in tax credits, which represents 31.8 percent of eligible project costs of $28 million. It will have 69 units;
· RPM Development was approved for up to $25 million in tax credits, which represents 53.7 percent of eligible project costs of $46.8 million, to develop a six-story, 101-unit building in Union City at 720 8th Street.
The credits are intended to fill finance gaps in the projects.
EDA officials said that all 170 units that will be supported by these approvals are designated as affordable and are also benefitting from financing provided by the New Jersey Housing and Mortgage Finance Agency’s Low Income Housing Tax Credit program.
“Through the Aspire Program, the NJEDA is investing in communities, uplifting families, and expanding access to affordable, quality housing to meet Governor Murphy’s goal of creating a stronger, fairer New Jersey,” EDA CEO Tim Sullivan said.
“The affordable, mixed-use projects that were approved today will help transform neighborhoods in Newark and Union City, and provide new, prime housing options for each cities’ senior residents.”
Aspire is a place-based economic development program created under the New Jersey Economic Recovery Act of 2020 to support mixed-use, transit-oriented development with tax credits to commercial and residential real estate development projects in communities across the state that have financing gaps. All residential Aspire projects must include 20 percent affordable housing.
To date, the EDA Board has now approved a total of $182.9 million in Aspire awards for residential projects, creating over 1,000 housing units – 806, or nearly 80 percent, of which will be affordable.
Senate Majority Leader Teresa Ruiz (D-Newark) is thrilled.
“When we created the Aspire Program it was with the intention of facilitating greater investment in our communities,” she said. “This project will do just that, developing affordable housing for our seniors, with vital wraparound services on site. As we face housing shortages and rising rents, projects like this are critical to uplifting our communities and ensuring older residents have suitable places to live within their budgets.”
Assemblywoman Eliana Pintor-Marin (D-Newark) agreed.
“Through the Aspire program, we’re building more than just housing; we’re cultivating communities where our seniors can thrive,” she said. “In Newark and Union City, we’re addressing needs that strengthen the fabric of our neighborhoods, ensuring a brighter and more equitable future for all.”
