New Jersey Lt. Governor Sheila Oliver (center) joins other officials including NJHMFA Executive Director Charles Richman, Newark Mayor Ras J. Baraka, Barry H. Ostrowsky, president and CEO, RWJBarnabas Health, Jacob Fisher, regional VP, Pennrose, LLC, and other guests following the funding announcement.
NEWARK, NJ—The State of New Jersey, in collaboration with RWJBarnabas Health, Pennrose, LLC, the City of Newark, and the New Jersey Housing and Mortgage Finance Agency, has announced plans to create 65 to 70 affordable rental apartments in Newark's South Ward.
The collaboration with RWJBarnabas Health will result in the creation of rental apartments two blocks from its Newark Beth Israel Medical Center. The apartments will be for residents earning an average of 60% of the area median income. A number of apartments will provide homes for homeless individuals and families, paired with access to medical services.
The $25.7-million project would include $3.04 million in mortgage financing from NJHMFA, $1.5 million from its Special Needs Housing Trust Fund, as well as $4 million from its hospital program to be matched by RWJBarnabas Health. Construction is expected to begin in July 2020 with completion in September 2021.
The NJHMFA Hospital Partnership Subsidy Program recognizes housing as a key variable to maintain good health and the role of hospitals as anchor institutions in the community. Under the program, NJHMFA matches funding contributions from participating hospitals to provide rental apartments affordable for low- and moderate-income families, as well as apartments for special needs residents.
"Innovative hospital partnerships like the one we are announcing today are taking hold in New Jersey because they are an effective way of providing affordable housing with supportive services for those most in need," says Lt. Governor Sheila Oliver, who also serves as Commissioner of the Department of Community Affairs (DCA) and chair of the NJHMFA board. "This new collaboration with RWJBarnabas Health is going to create dozens of homes for our most vulnerable residents while building upon the redevelopment that is already happening in the South Ward."
The project by RWJBarnabas Health and developer Pennrose LLC will be located in the 977 block of Bergen Street in the city's South Ward in the South Bergen Redevelopment Area. The new six-story building will include efficiencies, and one- to three-bedroom apartments.
Pennrose is expected to apply to the state Department of Community Affairs for project-based rental vouchers to subsidize the cost for the homeless individuals and families who will be part of this development. The ground floor will include healthy food retail options, as well as other commercial and program space to enable RWJBarnabas Health and its affiliates to provide services to the community.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
