NJEDA Approves $20M in Tax Credits for Affordable Seniors Housing Developments in New Jersey

by Jeff Shaw

NEWARK and WASHINGTON TOWNSHIP, N.J. — The New Jersey Economic Development Authority (NJEDA) has approved two additional senior residential development projects for Aspire funds. The two projects, one located in Newark and the other in Washington Township, will include 164 housing units for seniors, all of which will be affordable.

To date, the board has now approved a total of $294 million in Aspire funds for residential projects, leading to the creation and preservation of over 1,500 housing units, nearly 70 percent of which will be affordable. With the development projects that were approved, a total of four senior residential developments, all 100 percent affordable, have been approved for Aspire awards. Both projects also benefit from financing provided by the New Jersey Housing and Mortgage Finance Agency’s Low-Income Housing Tax Credit program.

Aspire is an 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 that have financing gaps. All residential Aspire projects must include at least 20 percent affordable housing. As a performance-based program, developers must certify that all commitments established at time of approval have been met before receiving the first disbursement of tax credits.

The development project in Newark, known as Forest Hill House, consists of the acquisition and rehabilitation of an existing senior apartment building and was approved for approximately $8.2 million in Aspire tax credits. The 10-story building consists of 100 housing units, including studios and one-bedroom units, as well as multiple common spaces and 25 parking spaces.

Forest Hill House has served as a senior residential building since it was built in 1977. The lead developer, Tredway Group LLC, will oversee a large-scale overhaul of the building, including replacement of the heating system, roof and windows, as well as upgrades to the security system, kitchen and bathroom. The rehabilitation will also include a transition to energy-efficient lighting and appliances and upgrades to make the building more accessible for residents with disabilities.

The new affordable senior housing development project in Washington Township, was approved for over $12 million in Aspire tax credits. The new construction, three-story building, which will be built on a vacant lot, will offer 64 one- and two-bedroom units. The building will also offer a community room with a kitchen, a fitness room and a laundry room, as well as 99 parking spaces for residents. Ingerman Development Co. LLC is the lead developer for the project.

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