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Developer: McCormack Baron & Associates, Inc. Type: New Construction # of Units: 124 Townhouse Units Finances: HOPE VI Program (United States Department of Housing and Urban Development) and New Jersey Low Income Housing Tax Credits
INTRODUCTION
The JCHA was awarded a $32 million grant under the Department of Housing and Urban Development's HOPE VI Program for the revitalization of Curries Woods and the creation of a new mixed-income, mixed-finance community, specifically, Lafayette Village.
Lafayette Village consists of 124 two, three and four bedroom townhouses (including 77 public housing townhouses which are also eligible for low income housing tax credits, and an additional 24 townhouses eligible only for low income housing tax credits, and 23 market townhouses with no income restrictions).
The overall objectives of our new Lafayette Village community reflect those of the HOPE VI Program, specifically to create vibrant, diverse, lower density working communities which are reflective of and complementary to surrounding, stable neighborhoods.
THE MIXED-FINANCE APPROACH
Lafayette Village was developed under a "mixed finance" approach which allows the JCHA to leverage its public housing funds with non-public housing funds to develop additional units that would not otherwise have been developed. More specifically, the JCHA Public Housing Development Funds and portion of the HOPE VI funds ($9.7 million) can develop 77 public housing townhouses. These public housing funds leveraged an additional $9.7 million for an additional 47 townhouses, from the following multiple funding sources: $5.8 million from Low Income Housing Tax Credits, $1.9 million from the New Jersey Housing and Mortgage Finance Agency, $1 million from the City of Jersey City, and $1 million from the New Jersey Balanced Housing Program.
These leveraged resources were facilitated through a partnership with our private Developer Partner, McCormack Baron and Associates, Inc. who brings essential experience in developing and managing assisted market-rate housing, as well as access to new sources of capital funds.
JERSEY CITY HOUSING AUTHORITY ROLE
In addition to providing HOPE VI funds and public housing development funds to create Lafayette Village, the JCHA responsibilities include selection of the Developer Partner, general oversight, liaison with third parties (including City and State) and administering the ongoing operating subsidy for the public housing units at Lafayette Village.
THE DEVELOPER PARTNER
Pursuant to the HUD approved Request for Qualification process, the JCHA selected McCormack Baron and Associates, Inc. as its Developer Partner for Lafayette Village. As the Developer Partner, McCormack Baron's responsibilities include contracting for design services and other third party professional services (legal, accounting, surveyor), developing a feasible financial plan and identifying and securing additional funding sources, selection of the general contractor, construction oversight and monitoring and post construction activities, including marketing, occupancy and property management.
OWNER ENTITY
In order to secure additional funding sources, specifically the federal low-income housing tax credits (LIHTC) administered by the New Jersey Housing and Mortgage Finance Agency, Lafayette Village must be privately owned. To accomplish this, the JCHA created a Not-for-Profit Corporation, Lafayette Village Inc. McCormack Baron then formed the Lafayette Community Limited Partnership, who will own Lafayette Village which includes the following entities (and their prorated ownership share):
Special Limited Partner: Lafayette Village, Inc., a not-for-profit affiliate of the JCHA (.01%) Managing General Partner: MBA Urban Development Co., (a for-profit affiliate of McCormack Baron) (1.99%) Limited Partner: SunAmerica Housing Fund 761, purchaser of the LIHTC (98%)
The JCHA leases the land (on which Lafayette Village is constructed) under a long term Ground Lease (55 years). Ownership to Lafayette Village will revert back to the JCHA after the lease term.
MANAGEMENT
Lafayette Village is privately managed under a contractual agreement with McCormack Baron Management Services, Inc. The 77 public housing units are managed in accordance with HUD requirements, including monitoring requirements and federal low income housing tax credit requirements administered by the Internal Revenue Services.
Initial public housing applicants were selected by McCormack Baron Management Services, Inc. utilizing a site-based waiting list that will be developed and thereafter maintained specifically for Lafayette Village. Applicants will be selected by date of application and pursuant to Local Preferences and priorities as follows:
Within these preferences, priority will be given to applicants as follows:
1. Neighborhood residents that are displaced by JCHA revitalization activities (e.g. prospective HOPE VI Program and Section 504 accessibility requirements). 2. Neighborhood residents 3. Jersey City residents
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