New Jersey’s economic development authority has approved three tax-credit awards totaling up to $77.44 million for projects that would create or rehabilitate 274 affordable homes in Newark.
The NJEDA announced the approvals October 23, following its board’s action the previous day. The awards cover renovations at Cottage Place Apartments and senior and family housing at Crown Village, a redevelopment of a former brewery on South Orange Avenue.
These are capped tax-credit awards under the Aspire gap-financing program, not the projects’ total development costs or a statement that the money has already been spent. Each award can cover up to 60% of eligible project costs.
Cottage Place, at 125 West Kinney Street, was approved for up to $29.6 million to rehabilitate 100 existing affordable apartments. Planned work includes kitchens and bathrooms, new windows and roofs, and energy-efficient heating, ventilation and air-conditioning equipment. Construction is expected to begin in March 2027. The project also includes a supportive-services program intended to help tenants maintain housing stability and access economic opportunities.
At Crown Village, up to $27.8 million would support 105 apartments for residents aged 55 and older in two five-story buildings. Some apartments would be reserved for residents earning between 50% and 60% of area median income and for people experiencing homelessness. The plans include onsite parking and support such as job training, community outreach and construction-trades pre-apprenticeship programs.
A separate award of up to $20.04 million covers a five-story family-housing building with 69 one-, two- and three-bedroom apartments above ground-level parking. The Newark Housing Authority has committed project-based Section 8 rental assistance to the project, according to the NJEDA announcement.
The combined 274-home figure includes 100 homes being renovated and 174 planned at Crown Village; it is not a count of newly completed apartments. All three projects also have support from Low-Income Housing Tax Credits administered through the New Jersey Housing and Mortgage Finance Agency.
The awards come amid continuing housing-cost pressure nationally. The Bureau of Labor Statistics reported that its shelter index rose 0.4% in September and 3.2% over 12 months. Those nationwide measures do not establish rents at these Newark properties or the projects’ future effect on local housing costs.
JBizNews Desk | Newark, New Jersey
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