Affordable Senior Housing Building In Newark Gets $9M Tax Credit

NEWARK, NJ — A new affordable housing building for seniors in Newark will get an $8.9 million boost from a state tax credit program, officials recently reported.

Earlier this week, the New Jersey Economic Development Authority (NJEDA) board approved a fresh round of tax credits under the Aspire Program, including the Terrell Homes project at 91-97 Chapel Street in Newark.

According to the NJEDA, the Terrell Homes project was approved for up to $8.9 million in tax credits, which represents 31.8 percent of eligible project costs of $28 million. The project will carry out a multi-phased redevelopment of the Mildred E. Terrell Homes public housing site, and aims to support the ongoing revitalization of the city’s Ironbound neighborhood.

The affordable senior housing building will include 69 residential units, including one- and two-bedroom units, and 28 on-site parking spaces. Chapel Street Aspire LLC (CSA), a 501(c)3 nonprofit, is a co-applicant of the project and will offer on-site services for residents including health and wellness screenings, social engagement activities, and shuttle service for shopping.

The site is owned by the Newark Housing Authority, which has entered a ground lease with Terrell Redevelopment Partners Urban Renewal, LP.

According to Newark Mayor Ras Baraka, the five-story building will provide 69 affordable, age-restricted units, 18 of them dedicated to permanent housing for people with physical difficulties.

“The Terrell Homes project represents our highest aspiration to provide comfort and security to the elders of our community,” Baraka said. “It is steeped in respect and compassion for our parents and grandparents who have raised up all of Newark through their perseverance, sacrifice, energy and faith.”

It isn’t the only recent project in Newark to benefit from the state program. More than $120 million in Aspire tax credits were approved by the NJEDA board in May for residential projects in Newark, Camden and Morristown. Read More: High-Rise In Newark With Affordable Units Gets $50M Tax Break From NJ

The Aspire program was established under law as part of the Economic Recovery Act of 2020. It provides tax credits to incentivize strategic real estate projects in New Jersey. To qualify, developers must show that without the award, the project wouldn’t be economically feasible. Projects must be located in a designated “Incentive Area,” among other requirements.

All residential Aspire projects must include 20 percent affordable housing. The Aspire program rules include provisions, such as a gap financing review and excess revenue sharing requirements, to ensure tax credits are awarded responsibly, according to the NJEDA.

The agency has now approved a total of $182.9 million in Aspire awards for residential projects, creating more than 1,000 housing units – nearly 80 percent of which will be “affordable.”

The latest Aspire tax credit approval in Newark got a thumbs-up from two state lawmakers who represent the city in the 29th District.

“Through the Aspire program, we're building more than just housing; we're cultivating communities where our seniors can thrive,” Assemblywoman Eliana Pintor-Marin said.

“When we created the Aspire Program it was with the intention of facilitating greater investment in our communities,” Senate Majority Leader Teresa Ruiz said. “This project will do just that, developing affordable housing for our seniors, with vital wraparound services on site.”

“As we face housing shortages and rising rents, projects like this are critical to uplifting our communities and ensuring older residents have suitable places to live within their budgets,” Ruiz said.

• See Related: Buy A House For A Buck? Newark Can Sell Homes For $1 Under New Rule
• See Related: City Council Beefs Up Rent Control Laws In Newark (VIDEO)

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