Title
Dept./ Agency: Economic and Housing Development
Action: (X) Ratifying (X) Authorizing (X) Amending
Type of Service: Affordable Housing
Purpose: To amend the Resolution of Need adopted on July 14, 2020, as Resolution 7R2-b(S), to correct the list of properties within the Project and revise the dwelling unit count on the Project to the constructed by Oak Towers Urban Renewal Entity, LLC and financed through the NJHMFA’s Low Income Housing Tax Credit Program.
Entity Name: Oak Towers Urban Renewal Entity, LLC
Entity Address: 150 East 52nd Street, 14th Floor, New York, New York 10022
Funding Source: New Jersey Housing Mortgage Finance Agency Program (Low Income Housing Tax Credit)
Total Project Cost: $17,339,117.00
City Contribution: $0.00
Other Funding Source/Amount: $0.00
List of Properties:
(Address/Block/Lot/Ward)
2-8 Stratford Place/Block 2668/Lot 1/South Ward
18-22 Stratford Place/Block 2668/Lot 9/South Ward
24 Stratford Place/Block 2668/Lot 12/South Ward
26 Stratford Place/Block 2668/Lot13/South Ward
28 Stratford Place/Block 2668/Lot 14/South Ward
30 Stratford Place/Block 2668/Lot 15/South Ward
Additional Information:
Original Resolution of Need: Resolution 7R2-b(S), adopted on July 14, 2020.
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WHEREAS, on July 14, 2020, the Municipal Council adopted a Resolution of Need, Resolution 7R2-b(S) (or “Resolution 7R2-b(S)071420”), in support of Oak Towers Urban Renewal Entity LLC’s (hereinafter referred to as the “Sponsor”) proposal to construct and operate approximately seventy-five (75) affordable housing units of which nineteen (19) units will be dedicated as supportive housing for homeless veterans within a rental housing project known as Aspen Stratford (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 2668, Lots 1 and 9 as shown on the Official Tax Map of the City of Newark, Essex County and commonly known as 2-8 Stratford Place, and 18-22 Stratford Place, Newark, New Jersey 07108 (South Ward)(Project Area); and
WHEREAS, the following properties within the Project Area were erroneously omitted from Resolution 7R2-b(S) adopted on July 14, 2020: 24 Stratford Place, 26 Stratford Place, 28 Stratford Place and 30 Stratford Place, identified on the Official Tax Map of the City of Newark as Block 2668, Lots 12, 13, 14, and 15 (“Omitted Properties”); and
WHEREAS, the Project the Sponsor initially proposed, pursuant to Resolution 7R2-b(S) adopted on July 14, 2020, was to construct/rehabilitate and operate seventy-five (75) affordable housing units of which nineteen (19) units would be dedicated as supportive housing for homeless veterans; and
WHEREAS, subsequent to the adoption of Resolution 7R2-b(S) on July 14, 2020, it was discovered during a walkthrough of the building that the building contains seventy-six (76) affordable housing units (75 rental units and 1 superintendent unit), and not seventy-five (75) units; and
WHEREAS, subsequent to the adoption of Resolution 7R2-b(S) on July 14, 2020, the Project was amended to remove the dedication of nineteen (19) of the seventy-five (75) units to supportive housing for homeless veterans; and
WHEREAS, the Municipal Council wishes to amend Resolution 7R2-b(S) adopted on July 14, 2020, to include the Omitted Properties and to affirm that its determination of need thereunder equally applies to the Omitted Properties; and
WHEREAS, the Municipal Council further wishes to amend the Project Description in Resolution 7R2-b(S) adopted on July 14, 2020, to indicate that the Project shall include seventy-six (76) affordable housing units (75 rental units and 1 superintendent unit), and not seventy-five (75) units with nineteen (19) units dedicated to supportive housing for homeless veterans; 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, 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, a copy of which is attached hereto and made a part hereof.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1) The aforementioned recitals are incorporated herein as though fully set forth at length.
2) The Municipal Council finds and determines that the Project known as Aspen Stratford proposed by Oak Towers Urban Renewal Entity, LLC,, 150 East 52nd Street, 14th Floor, New York, New York 10022, which will rehabilitate an existing complex made up of seventy-six (76) affordable housing units (75 rental units and 1 superintendent unit) within the rental housing project on a site described as Block 2668, Lots 1, 9, 12, 13, 14 and 15 as shown on the Official Tax Map of the City of Newark, Essex County and commonly known as 2-8 Stratford Place, 18-22 Stratford Place, 24 Stratford Place, 26 Stratford Place, 28 Stratford Place and 30 Stratford Place, Newark, New Jersey 07108 (South Ward) (Project) meets or will meet an existing housing need within the City of Newark, New Jersey pursuant to the provisions of the HMFA Requirements.
3) The Municipal Council finds and determines that this resolution shall amend and supersede Resolution 7R2-b(S) adopted on July 14, 2020, in so far as it contains an incomplete list of properties and the Project has changed to construct/rehabilitate and operate seventy-six (76) affordable housing units and no longer includes a dedication of nineteen (19) units as supportive housing for homeless veterans.
4) The Municipal Council finds and determines that the residential unit housing development proposed by Sponsor meets all or part of the City of Newark’s low and moderate income housing obligations.
5) 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 New Jersey Housing and Mortgage Finance Agency to process the Sponsor’s application for Agency funding to finance the Project.
STATEMENT
This resolution ratifies and authorizes the amendment of Resolution 7R2-b(S) adopted on July 14, 2020, to correct the list of properties within the proposed Project and to amend the dwelling unit count from 75 affordable units with 19 units dedicated as supportive housing for homeless veterans to 76 affordable housing units comprised of 75 affordable units and 1 superintendent’s unit. With the adoption of this resolution, the Municipal Council finds and determines that there is a need within the City of Newark for the proposed Project by Oak Towers Urban Renewal Entity, LLC, known as Aspen Stratford, and construction and subsidy of the Project, and is therefore supportive of Oak Towers Urban Renewal Entity LLC’s application to the New Jersey Housing and Mortgage Finance Agency for funding to finance the construction of 76 affordable housing units (75 rental units and 1 superintendent’s unit) to be rented to individuals whose income fall within the guidelines set by the New Jersey Housing Tax Credit program on a site located at Block 2668, Lots 1, 9, 12, 13, 14 and 15 as shown on the Official Tax Map of the City of Newark, Essex County and commonly known as 2-8 Stratford Place, 18-22 Stratford Place, 24 Stratford Place, 26 Stratford Place, 28 Stratford Place and 30 Stratford Place, Newark, New Jersey 07108 (South Ward).