NJEDA Board Approves Another Round of Aspire Tax Credits Aimed at Affordable Senior Residential Projects in North Jersey
Aspire Program will bridge financial gaps for two residential development projects in Newark & Union City creating 170 housing units
TRENTON, N.J. (July 26, 2023) – Two residential development projects in underserved North Jersey communities were approved for tax credits under the Aspire Program today by the New Jersey Economic Development Authority (NJEDA) Board. The two projects, both of which are for senior housing, will create a total of 170 residential units in Newark and Union City. To date, the Board has now approved a total of $182.9 million in Aspire awards for residential projects, creating over 1,000 housing units – 806, or nearly 80 percent, of which will be affordable.
Aspire is a place-based economic development program created under the New Jersey Economic Recovery Act of 2020 (ERA) to support mixed-use, transit-oriented development with tax credits to commercial and residential real estate development projects in communities across the state that have financing gaps. All residential Aspire projects must include 20 percent affordable housing. All 170 units that will be supported by these approvals today are designated as affordable and are also benefitting from financing provided by the New Jersey Housing and Mortgage Finance Agency’s Low Income Housing Tax Credit program.
“Through the Aspire Program, the NJEDA is investing in communities, uplifting families, and expanding access to affordable, quality housing to meet Governor Murphy’s goal of creating a stronger, fairer New Jersey,” said NJEDA Chief Executive Officer Tim Sullivan. “The affordable, mixed-use projects that were approved today will help transform neighborhoods in Newark and Union City, and provide new, prime housing options for each cities’ senior residents.”
“When we created the Aspire Program it was with the intention of facilitating greater investment in our communities,” said Senate Majority Leader Teresa Ruiz (D-Essex). “This project will do just that, developing affordable housing for our seniors, with vital wraparound services on site. As we face housing shortages and rising rents, projects like this are critical to uplifting our communities and ensuring older residents have suitable places to live within their budgets.”
“Through the Aspire program, we’re building more than just housing; we’re cultivating communities where our seniors can thrive,” said Assemblywoman Eliana Pintor-Marin (D-Essex). “In Newark and Union City, we’re addressing needs that strengthen the fabric of our neighborhoods, ensuring a brighter and more equitable future for all.”
The first project the Board approved today was Terrell Homes, which will be located at 91-97 Chapel Street in Newark and will be reserved for seniors ages 55 and older. The project was approved for up to $8.9 million in tax credits, which represents 31.8 percent of eligible project costs of $28 million. The project is multi-phased redevelopment of the Mildred E. Terrell Homes public housing site and aims to support the ongoing revitalization of the city’s Ironbound neighborhood. The site is owned by the Newark Housing Authority, which has entered a ground lease with Terrell Redevelopment Partners Urban Renewal, LP.
The affordable senior housing building will consist of 69 residential units, including one- and two-bedroom units, and 28 on-site parking spaces. Chapel Street Aspire LLC (CSA), a 501(c)3 nonprofit, is a co-applicant of the project and will offer on-site services for residents including health and wellness screenings, social engagement activities, and shuttle service for shopping.
“The Terrell Homes project represents our highest aspiration to provide comfort and security to the elders of our community,” said Newark Mayor Ras J. Baraka. “By incorporating the anticipated health, social, and transportation needs of our seniors, this initiative is not just comprehensive and forward-thinking. This five-story building will provide 69 affordable, age-restricted units, 18 of them dedicated to permanent, supportive, housing for persons with physical difficulties. It is steeped in respect and compassion for our parents and grandparents who have raised up all of Newark through their perseverance, sacrifice, energy, and faith. Our city extends its heartfelt gratitude to NJEDA for this wonderful opportunity for our seniors.”
The NJEDA Board approved up to $25 million in tax credits, which represents 53.7 percent of eligible project costs of $46.8 million, for RPM Development LLC to develop a six-story affordable senior housing building in Union City. The 101-unit building, which will include one- and two-bedroom units, will be located at 720 8th Street between Summit and Central Avenues and replace a surface parking lot. There will be two levels of garage parking and the ground level will consist of two retail spaces.
The co-applicant, Life Management Inc., a 501(c)3 nonprofit, will offer on-site services for residents. Services offered will help developmentally disabled and formerly homeless residents. Moreover, the project will comply with the federal government’s Energy Star Homes Program, which also satisfies NJEDA’s Green Building Standards.
“The people of Union City and myself are grateful to the NJEDA and welcome the development of affordable senior housing within our community,” said Union City Mayor Brian Stack. “With the current affordability crisis, it is fundamental that we continue to assist and support our senior populations, and this project will not only expand access to affordable housing, but it will also provide our elderly residents with various physical and mental health resources and services.”
In June, the NJEDA Board approved up to $29 million in Aspire tax credits for a multifamily development project in downtown Trenton. Over $120 million in Aspire tax credits were approved by the Board in May for residential projects in Camden, Morristown, and Newark.
In line with Governor Murphy and the NJEDA’s commitment to fiscal responsibility and transparency, the Aspire program rules include provisions, such as a gap financing review and excess revenue sharing requirements, to ensure tax credits are awarded responsibly.
The Aspire program application, as well as complete rules, eligibility requirements, award sizes, and other information can be found here.
About the NJEDA
The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.
October 3, 2023
NJEDA Announces $12 Million Funding to 48 Cannabis Equity Grant Awardees
Bloomfield, N.J. (October 3, 2023) —Today, New Jersey Economic Development Authority Chief Executive Officer, Tim Sullivan, and Chief Community Development Officer, Tai Cooper, joined Bloomfield Mayor, Michael J. Venezia, along with representatives of the New Jersey Cannabis Regulatory Commission (NJCRC) to announce the awarding of $12 million of grant funding.
October 2, 2023
NJEDA Angel Tax Credit Approvals Drive over $63 Million in Private Sector Investment into New Jersey Companies in 2023
TRENTON, N.J. (October 2, 2023) – The New Jersey Economic Development Authority (NJEDA) announced today that 28 emerging New Jersey technology businesses benefitted from $63.2 million in private investment as supported in 2023 by the New Jersey Angel Investor Tax Credit Program (ATC).
October 2, 2023
NJEDA to Announce Cannabis Grant Awardees & Major New Funding
TRENTON, N.J. (October 2, 2023) – Tomorrow, Tuesday, October 3, 2023, the New Jersey Economic Development Authority (NJEDA) will host a press conference to announce the recipients of the $250,000 Joint Ventures Grants and provide a funding update for its Cannabis Equity Grant Program.