Newark Is Selling 6 Properties For $100 Each In Latest Affordable Housing Push

NEWARK, NJ — Newark is planning to sell several city-owned properties for $100 each – but there are a few important catches to know first, officials say.

On Wednesday, city administrators released details about a new program being run through Newark's Office of Community Development in the Department of Economic and Housing Development (EHD).

Newark is seeking real estate developers who want to buy one of the properties – which are vacant or “distressed” – and turn them into affordable housing.

The city is sweetening the pot by offering the properties for a nominal sale price of $100. The properties may also qualify for a five-year tax abatement, subject to city council approval. In addition, grant funding may be available to offset eligible rehabilitation costs.

The redeveloped properties will have to meet several conditions, according to a statement from Mayor Ras Baraka and the EHD:

• All units must be rented at fifty percent (50%) of Area Median Income (AMI)
• Affordability will be enforced through a recorded deed restriction and/or redevelopment agreement
• Deed restriction will be in place for the 50% AMI for 15 years
• Rent limits and tenant eligibility must comply with city-issued AMI guidelines in effect at the time of leasing
• Ongoing compliance monitoring is required for the duration of 15 years by the city
• Rehabilitation must commence within three months of property transfer, with substantial completion required within 18 months of transfer. All work must comply with applicable zoning regulations, construction codes and permitting requirements.

Redevelopers must be “Newark-based entities” that have successfully completed at least one redevelopment project with the City of Newark and are in “good standing” regarding taxes and water and sewer regulations. They must be able to demonstrate “financial and operational capacity to complete the project,” and be prepared to comply with affordability, reporting and monitoring requirements, officials said.

The specific locations of the six properties for sale were not included in a news release about the new initiative. Locations will be provided to applicants.

Interested developers can attend a presentation at 3:30 p.m. on Friday, Jan. 30 in the council chambers at City Hall, 920 Mayor Kenneth A. Gibson Boulevard. The event will be the only opportunity for parties to get a package and an application, officials said.

• See Related: Newark Sells Homes For $1, Fights Back Against Housing Crisis
• See Related: ‘Affordable’ Isn’t Affordable: Newark’s Plan To Create More Housing

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