Title
Dept./ Agency: Economic and Housing Development
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Need for Housing Project
Purpose: To determine whether the proposed Project will meet or meets an existing housing need within the City of Newark, 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 et seq., and all applicable guidelines to enable the Agency to process the Sponsor's application for funding the Project through the Low Income Housing Tax Credit Program and to offer support for State economic incentives.
Entity Name: 930 McCarter Urban Renewal, LLC
Entity Address: 120 Albany Street, Suite 800, New Brunswick, New Jersey 08901
Funding Source: New Jersey Housing Mortgage Finance Agency Program (Low Income Housing Tax Credit) and New Jersey Aspire Program.
Total Project Cost: $141,900,000.00
City Contribution: $8,000,000.00
Other Funding Source/Amount: To be determined
List of Properties:
(Address/Block/Lot/Ward)
930 McCarter Highway/Block 1/Lot 46.02 /Central Ward
Additional Information:
body
WHEREAS, 930 McCarter Urban Renewal, LLC (hereinafter referred to as the “Sponsor”) proposes to construct and operate approximately (333) residential units, including (67) affordable housing units, within a project known as 930 McCarter (hereinafter referred to as the “Project”), 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 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”) on a site described as Block 1, Lot 46.02 as shown on the Official Assessment Map of the City of Newark, Essex County and commonly known as 930 McCarter Highway, Newark, New Jersey 07102 (Central Ward); 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”), with the bedroom and income distribution of the residential units to be determined in accordance with the HMFA Requirements; 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 and supports application by Sponsor to the Agency for a tax credit allocation; and
WHEREAS, the Sponsor has presented to the Municipal Council a revenue projection, which sets forth the anticipated revenue to be received by the Sponsor from the operation of the Project as estimated by the Sponsor and the Agency; and
WHEREAS, in addition, pursuant to the New Jersey Economic Recovery Act of 2020, as amended, the New Jersey Economic Development Authority (the “Authority”) has specially adopted new rules for the Aspire Program, N.J.A.C. 19:31-23; and
WHEREAS, the Governing Body hereby also supports the Sponsor applying to the Authority for economic incentives under the Aspire Program to support the Project.
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 930 McCarter Highway proposed by 930 McCarter Urban Renewal, LLC (“the Sponsor”), 120 Albany Street, Suite 800, New Brunswick, New Jersey 08901, which is proposed to include (67) affordable housing units at 930 McCarter Highway, Newark, New Jersey 07102, Block 1, Lot 46.02, (Central Ward) meets or will meet an existing housing need within the City of Newark, New Jersey, 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 et seq., and all applicable guidelines.
2. The Municipal Council supports the allocation of tax credits pursuant to the HMFA Requirements to this Project.
3. 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 Requirements to enable the Agency to process the Sponsor’s application for Agency funding to finance the Project.
4. The Municipal Council further supports the Sponsor making an application to the Authority for economic incentives for the Project pursuant to the Aspire Program and directs the Department of Economic and Housing Development to provide documentation demonstrating such support to accompany Sponsor’s application to the Authority.
STATEMENT
Resolution of support by the Municipal Council which finds and determines that there is a need within the City of Newark for the proposed Project by 930 McCarter Urban Renewal, LLC and construction and subsidy of the Project, which enables the New Jersey Housing and Mortgage Finance Agency to process 930 McCarter Urban Renewal, LLC’s application for funding to finance the construction of (67) affordable housing units whose income is within the guidelines set by the New Jersey Housing Tax Credit program on a site located at Block 1, Lot 46.02 as shown on the Official Assessment Map of the City of Newark, Essex County and commonly known as 930 McCarter Highway, Newark, New Jersey 07102 (Central Ward) and further provides support for the Sponsor applying to the New Jersey Economic Development Authority for economic incentives pursuant to the Aspire Program.