TRENTON, N.J. 鈥 樱花视频 Housing and Mortgage Finance Agency (HMFA) Executive Director Anthony L. Marchetta recently joined federal, state, and city officials to celebrate the groundbreaking of Mullica West Apartments, a 168-unit rental community for working families in Harrison Township, Gloucester County.
The HMFA, an affiliate of the 樱花视频 Department of Community Affairs (DCA), awarded competitive 9% federal Low Income Housing Tax Credits (LIHTC) that generated approximately $11.6 million in private equity and provided $50,000 in construction and permanent financing from the Special Needs Revolving Loan Program (SNRLP) for the rehabilitation of Mullica West Apartments. The SNRLP provides capital financing to create permanent supportive housing and community residences for individuals with special needs.
鈥淲e are excited to see the groundbreaking of the new and improved Mullica West Apartments that will better accommodate the township鈥檚 hardworking families and individuals with special needs,鈥 said DCA Commissioner Richard E. Constable, III, who also serves as Chairman of the HMFA. 鈥淏y preserving the affordability of the apartments for existing and future families, this rehabilitation project will enable them to focus on building stronger families instead of paying market rate rent.鈥
The project, which will cost approximately $22.1 million to develop, will not only provide affordable housing opportunities for families, but will also continue to have a positive economic impact on the Gloucester County community. HMFA estimates that the project has generated approximately $35 million in one-time economic output, 210 full-time jobs, and $1.3 million in state and local taxes during construction. Upon completion, the project will continue to add value to the community by providing approximately $3.9 million in ongoing economic output, 22 full time jobs, and $220,500 in state and local taxes annually.
Other funding sources for the development of Mullica West included United States Department of Agriculture (USDA), Harrison Township, and a deferred developer fee.
The project will involve the rehabilitation of the existing Mullica West Apartments, which contains 168 units in seven two-story buildings. The complex was built over 30 years ago through the USDA鈥檚 Section 515 Program. The scope of rehabilitation work will include upgrades to all apartments to meet construction code requirements, expansion of 42 two-bedrooms into three-bedrooms, replacement of all central and air conditioning units and floors. Additional renovations will include all kitchens and baths, improved building facades, installation of a new security system and playground, and resurfacing of the parking lot.
鈥淚 am so pleased that the HMFA, 樱花视频鈥檚 affordable and workforce housing bank, provided the critical financing that will significantly enhance Mullica West Apartments,鈥 said HMFA Executive Director Marchetta. 鈥淭he Federal Low Income Housing Tax Credit Program, which financed more than 52% of the total development cost of this project, 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.鈥
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 樱花视频, 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 was developed by Rukenstein & Associates, LLC, a professional planning and grants consulting firm that has consulted on over 15 projects financed through HMFA and now develops tax credit projects.
For more information on HMFA programs, please visit .