L+M Development Partners, Type A Projects, and MSquared recently closed on $42 million in construction financing to complete a 78-unit affordable housing project in Newark, New Jersey. The property will occupy a portion of an existing residential complex at 250 Georgia King Village in the city’s Fairmount neighborhood.
As the latest development created through the New Jersey Housing and Mortgage Finance Agency’s Hospital Partnership Subsidy Program, referred to as NJHMFA, available units will be reserved for low and moderate-income households with support from University Hospital. Sixteen units will be reserved for homeless individuals and families, made possible through project-based rental vouchers provided by the New Jersey Department of Community Affairs’ Housing Choice Voucher Program. The project will also be a recipient of 30 project-based rental vouchers from the Newark Housing Authority.
Additional components will include a ground-floor clinic and hospital office space operated by University Hospital.
The project is being financed through a combination of public and private capital including $18 million in tax credit equity from Wells Fargo, $22 million in mortgage financing from NJHMFA, $1.6 million from the NJHMFA Special Needs Housing Trust Fund, $6 million from the Hospital Partnership Subsidy Program, and $3.5 million from the Multifamily Rental Housing Production fund, as well as $3 million from University Hospital, $300,000 in HOME funds from the City of Newark, and $300,000 in HOME funds from Essex County.
“This financing is a tremendous step forward for a project that will have a lasting impact on area residents in finding and keeping affordable, supportive housing in the proximity of University Hospital,” said Lt. Governor Sheila Oliver, who serves as commissioner of the Department of Community Affairs and NJHMFA board chair. “Governor Murphy and I are thrilled to see progress on this innovative hospital and housing partnership project that will help strengthen the Fairmount community.”
Renderings from Inglese Architecture and Engineering reveal a wedge-shaped brick building with a standard punched window-system, gray metal accents, and modest planters and trees surrounding the property.
According to the project team, construction is expected to break ground in the coming weeks, but no official groundbreaking date has been announced.
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