Will Create 42 New Affordable Homes for Seniors with Modest Incomes and/or Special Needs one of NJHMFA Awards $28M In Federal Tax Credits
Monarch Housing is pleased to announce the St. Paul the Apostle Supportive Housing project received an award of 9% federal low income housing tax credits (LIHTC) in the New Jersey Housing and Mortgage Finance Agency (NJHMFA)’s 2018 funding round.
Domus Corporation, the development arm of Catholic Charities of the Archdiocese of Newark, and Metuchen Community Services Corporation, the development arm of Catholic Charities Diocese of Metuchen, are co-developing the project.
Located in Edison, the St. Paul the Apostle Supportive Housing project will create 42 units of affordable rental housing for seniors with modest incomes and/or special needs. Monarch is the development consultant for the project and prepared the project’s tax credit application.
Other projects funded include:
These projects were among the 22 developments awarded over $28 million in the highly competitive federal 9 percent LIHTC by the NJHMFA to expand affordable housing statewide.
The tax credits will support the creation of close to 1,400 affordable apartments for families, seniors and special needs residents in 12 counties. The projects total nearly $479 million in development investment and will create thousands of construction-related jobs, generate additional tax revenues and boost local economic activity.
“Investing in housing that is affordable in New Jersey is the most important thing we can do to help individuals, families and seniors of mixed income levels be able to afford to live in this state,” said Lieutenant Governor Sheila Y. Oliver, who also serves as Commissioner of the Department of Community Affairs and Chair of the NJHMFA board. “These vital tax credits help keep our commitment to the goal of producing housing that meets the diverse needs of our communities with the added benefit of producing thousands of jobs across the state.”
Federal LIHTCs are awarded to developers to build new rental apartments or rehabilitate existing rental units for low-income households. Typically, the tax credits are sold to investors, who then provide private equity to fund construction. In return, the investors receive a dollar for dollar reduction on their federal tax returns for a period of 10 years.
The Low Income Housing Tax Credit is the most prolific source of funding for new affordable rental units, and since its creation in 1986, the program has created an estimated 3 million units.
NJHMFA is the state’s sole administrator of the LIHTC program and currently monitors nearly 600 tax credit developments of more than 50,000 housing units statewide.
“Through this award of tax credits, developers can leverage $270 million in private equity to help finance the development of affordable housing and improve the lives of thousands of residents,” said NJHMFA Executive Director Charles A. Richman. “This program has been key to our efforts to expand affordable housing and invest in communities across the state.”
NJHMFA estimates that the 2018 round of tax credit awards will result in more than $759 million in one-time economic output, defined as the total value of industry production, such as sales and business revenues.
During construction, the LIHTC projects will produce more than:
Once completed, the projects will support nearly:
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