71 New Homes for Senior Citizens
Funded Through LIHTC
On June 25, 2015, state and local officials, project partners and community members celebrated the grand opening of the Village at Garwood. This 72-unit senior rental community located in Garwood provides housing for very low-income senior citizens ages 62 and over.
New Jersey Housing and Mortgage Finance Agency (HMFA), an affiliate of the New Jersey Department of Community Affairs (DCA), provided the project with $11.1 million in construction financing and approved the project for 4% federal Low Income Housing Tax Credits (LIHTC) of up to $5.6 million over ten years.
Westfield Senior Citizens Housing Corporation is the project developer and funder. Other funding sources for the development of the Village at Garwood include the Section 202 Capital Advance Program funds and a Predevelopment Grant from the U.S. Department of Housing and Urban Development (HUD), Sponsor’s Equity, financing through the Federal Home Loan Bank of New York through its member bank Two River Bank and funding from Enterprise Community Investment.
Design and Construction Monitoring services were provided by Steven S. Cohen Architects, and the General Contractor was Del-Sano Contracting Corporation. Monarch Housing served as the project consultant for the Village at Garwood.
The Village of Garwood has 71 rental units have project-based rental assistance through the HUD Section 202 Capital Advance Program and Project Rental Assistance Contract and residents pay 30% of their income towards rent and utilities. The development is situated within walking distance from a full-service grocery, pharmacy, restaurants, banks, cleaners, hair salons, and public transportation. One of the two-bedroom units is for the building superintendent.
“I am so pleased that the HMFA, New Jersey’s affordable and workforce housing bank, was able to provide the critical financing that has brought the Village at Garwood to fruition. The Low Income Housing Tax Credit Program has helped produce more than 40,000 housing opportunities for New Jersey’s working class since its inception in 1986, and is one of the most successful and efficient federal housing programs ever created to incentivize the private market to invest in the creation or rehabilitation of quality affordable rental housing that enhances our neighborhoods.”
Said HMFA Executive Director Tony Marchetta.
Neil Sullivan with Westfield Senior Citizens Housing Corporation, Dean Santa with the Newark HUD office, Joshua Montesinos with Enterprise Community Asset Management and Borough of Garwood Mayor Charles Lombardo also spoke at the event.
Residents from Westfield Senior Citizen Corporation’s existing projects were invited to cut the Ribbon, opening the new facility. Additionally, a Flag Raising ceremony was held, and veterans were invited to raise the flag.
Annually, states are allocated Low Income Housing Tax Credits by the federal government on a per-capita basis. HMFA, as the administrator of the federal Low Income Housing Tax Credit Program in New Jersey, allocates approximately $20 million in 9% credits annually, which generates over $180 million in equity for the development of affordable housing in the state.
The project, which involved the replacement of a vacant school and convent building with a newly constructed three-story apartment complex will cost approximately $20.6 million to develop, not only provides affordable housing opportunities for seniors, but also has a positive economic impact in Union County.
HMFA estimates that the project has generated approximately $32.7 million in one-time economic output, 195 direct and indirect/induced full-time jobs, and $1.2 million in state and local taxes during construction. Now completed, the project will continue to add value to the community by providing approximately $3.6 million in ongoing economic output, 20 direct and indirect/induced full-time jobs, and approximately $206,000 in state and local taxes annually.