Title
Dept/ Agency: Economic and Housing Development
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Need for Housing Project
Purpose: To support NJHMFA Low Income Housing Tax Credit Application for a project known as 505 Clinton Avenue, for the construction of twenty seven (27) rental units of affordable housing to be located at 505-509 Clinton Avenue, Newark, New Jersey 07108, Block 3000, Lot 21
Entity Name: Newark Community Economic Development Corporation
Entity Address: 111 Mulberry Street, Market Street Suite LL, Newark, New Jersey 07102
Funding Source: New Jersey Housing and Mortgage Finance Agency (Low Income Housing Tax Credit)
Total Project Cost: Approximately $7,042,748.00
City Contribution: Proposed Funding Upon Municipal Approval
Affordable Housing Trust Fund/ $500,000.00
PSE&G Settlement/ $1,000,000.00
Other Funding Source/Amount: Proposed Funding Upon Municipal Approval
HMFA 1st Mortgage, Note 1/$1,490,488.00
HMFA 1ST Mortgage, Note 11/$2,726,000.00
CDBG/UEZ/$500,000.00
Kresge/Dodge/VictoriaFoundation/$750,000.00
LIHTC Equity (4%)/$2,314,370.00
Deferred Developers Fee/$676,174.00
List of Properties:
(Address/Block/Lot/Ward)
505-509 Clinton Avenue, Newark, New Jersey
Block 3000, Lot 21 (South Ward)
Additional Information:
body
WHEREAS, Newark Community Economic Development Corporation,111 Mulberry Street, Market Street Suite LL, Newark, New Jersey 07102 (hereinafter referred to as the “Sponsor”) proposes to construct approximately twenty-seven (27) affordable rental units on a site described as Block 3000, Lot 21 as shown on the Official Assessment Map of the City of Newark, Essex County, Newark, New Jersey and commonly known as 505-509 Clinton Avenue, Newark, New Jersey 07108 (South Ward), for a project known as 505 Clinton Avenue (hereafter referred to as the “Project”), to be occupied by individuals whose income is within guidelines set by the New Jersey Low Income Housing Tax Credit Program; and
WHEREAS, the Project shall be constructed and completed pursuant to the provisions of the New Jersey Housing and Mortgage Finance Agency Law of 1983, as amended (N.J.S.A 55:14K-1 et seq.), the rules promulgated thereunder at N.J.A.C. 5:80-1.1 et seq. and all applicable guidelines promulgated thereunder (the foregoing hereinafter collectively referred to as the “HMFA Requirements”) within the City of Newark, (hereinafter referred to as the “Municipality”); and
WHEREAS, the Project will be subject to the HMFA Requirements and the mortgage and other loan documents executed between the Sponsor and the New Jersey Housing and Mortgage Finance Agency (hereinafter referred to as the “Agency”); and
WHEREAS, pursuant to the HMFA Requirements, the Governing Body of the Municipality hereby determines that there is a need for this housing project in the Municipality.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1) The Municipal Council finds and determines that the project known as 505 Clinton Avenue (hereafter referred to as the “Project”), proposed by Newark Community Economic Development Corporation (the “Sponsor”), 111 Mulberry Street, Market Street Suite LL, Newark, New Jersey 07102, consisting of the construction of approximately twenty seven (27) affordable rental units on a site described as Block 3000, Lot 21, as described on the Official Assessment Map of the City of Newark, Essex County, New Jersey and commonly known as 505-509 Clinton Avenue, Newark, New Jersey, 07108 (South Ward), meets or will meet an existing housing need.
2) The Municipal Council does hereby adopt the within Resolution and makes the determination and findings herein contained by virtue of, pursuant to, and in conformity with the provisions of the HMFA Law to enable the Agency to process the Sponsor’s application for Agency funding to finance the Project.
STATEMENT
This Resolution will permit Newark Community Economic Development Corporation, 111 Mulberry Street, Market Street Suite LL, Newark, New Jersey 07102, to meet the requirements for funding from NJHMFA to construct approximately twenty seven (27) affordable rental units, for a project known as 505 Clinton Avenue to be occupied by individuals whose income is within guidelines set by the New Jersey Low Income Housing Tax Credit Program on a site described as Block 3000, Lot 21 as shown on the Official Assessment Map of the City of Newark, Essex County, New Jersey and commonly known as 505-509 Clinton Avenue, Newark, New Jersey 07108 (South Ward).