New Jersey Lt. Gov. Sheila Oliver
WEST WINDSOR, NJ—The New Jersey Housing and Mortgage Finance Agency announced on Tuesday that it will provide $50 million to fund an initiative aimed at creating 400 apartments for New Jersey special needs residents.
The funding under the Special Needs Housing Subsidy Loan Program is the first major new funding source in seven years to provide supportive and affordable housing opportunities statewide.
The agency will finance the new program through bonding and its own contributions.
"We all know or help care for someone with special needs—whether it be a veteran, at-risk youth or someone facing developmental differences or mental health challenges. This funding will go directly to providing housing and compassionate care for these individuals and their families," says Lt. Governor Sheila Oliver, who also serves as Commissioner of the Department of Community Affairs (DCA) and NJHMFA board chair.
Under the new SNHSLP program, NJHMFA will provide financing to developers of supportive housing and community residences. The program builds on NJHMFA's former Special Needs Housing Trust Fund which had helped create quality affordable housing with needed supportive services for nearly 1,600 families and individuals since 2005.
The populations to be served under the SNHSLP include: disabled and homeless veterans; homeless individuals and families; individuals with mental illness, and physical and developmental disabilities; victims of domestic violence; individuals in treatment for substance abuse; ex-offenders and youth offenders; youth aging out of foster care; runaway and homeless youth; individuals with AIDS/HIV; individuals 18 years and over coming out of nursing homes; and individuals in other emerging special needs groups identified by state agencies
The SNHSLP financing, in the form of loans, is available to eligible not-for-profit and for-profit developers, as well as government entities at the state, county and local level for new construction or the rehabilitation of housing. Since program funding is limited, NJHMFA has established priorities for determining projects. Developments must maximize long-term affordability of at least 30 years; minimize temporary or permanent displacement; and demonstrate appropriate location and design.
For special needs-only developments, the maximum loan amount many not exceed $500,000. For multifamily projects, the maximum loan amount many not exceed $125,000 per unit, with a maximum of five units per project.
The announcement of the new state funding program was made during the grand opening of Freedom Village at West Windsor on Tuesday, which provides 72 apartments affordable to families, including 18 for residents with special needs. NJHMFA awarded the $19.6 million development 9% Low Income Housing Tax Credits (LIHTC) through its supportive housing cycle, which generated $13.3 million in private equity. The complex was developed by Project Freedom, a Mercer County-based nonprofit organization dedicated to empowering people with disabilities to live independently through housing and related support services.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
