Regan Development Corp. hosted a groundbreaking ceremony on Wednesday, July 25, for a new 60-unit affordable housing development at 416-426 Broadway in Newark. — Courtesy: Newark Press Office
By Joshua Burd
A developer joined local and state officials on Wednesday to break ground on a 60-unit affordable housing project in Newark’s North Ward, where plans call for redeveloping the former site of a Boys & Girls Club.
Regan Development Corp., an Ardsley, New York-based firm, hosted the ceremony at the site of what will become Carrino Plaza Apartments, located at 416-426 Broadway. When complete, the $23.1 million project will deliver apartments ranging from one- to three-bedroom units, along with 6,000 square feet of retail space and other amenities.
Newark Mayor Ras Baraka hailed the plan as part of the effort to advance affordable housing in the state’s largest city, a central pillar for the second-term administration.
“We are elated that Regan Development Corporation has signed on in full, with the Carrino Plaza Apartments, which will not only provide affordable housing, but 10 units for residents with mental health needs,” Baraka said in a prepared statement. “This is an example to our nation on how to build housing with humanity.”
Named after former City Councilman Anthony Carrino, who represented the North Ward for 28 years, the development is close to McCarter Highway and a supermarket, retail, houses of worship and other offerings, according to a news release. Construction is expected to be complete by December.
“Regan Development is very proud to help the city of Newark and the North Ward move forward on its redevelopment efforts with new affordable, workforce housing units for Newark and Essex County families,” said Larry Regan, president of Regan Development. “We are proud to honor the long-term work of Anthony Carrino to make the North Ward and Newark a great place to live.”
The New Jersey Housing and Mortgage Finance Agency provided $10.5 million in financing for the project from its Conduit Bond program, as well as $1 million from its Sandy Special Needs Housing Fund, the organization said. The agency also awarded the project 4 percent Low Income Housing Tax Credits, which are expected to generate some $7.8 million in private equity.
Rents will likely range from $947 to $1,298, the news release said. Features will include a community room, laundry facilities and an on-site manager’s office.
“Carrino Plaza will contribute to the economic vitality of the neighborhood and the overall city,” said Charles A. Richman, the HMFA’s executive director. “Building rental housing that is affordable to workforce individuals and families enables them to stay and grow in the community, and have ready access to downtown amenities, jobs and public transportation. It is a key part of NJMHFA’s mission.”
Additional funding includes:
- $3.9 million in tax credits from the state Economic Development Authority’s Economic Redevelopment and Growth program
- A $720,000 low-interest loan for property acquisition from the city of Newark
- A $7.78 million construction bridge loan from TD Bank
- A U.S. Department of Housing and Urban Development and Love Funding Corp. Section 221(d)(4) funding loan of $7.9 million.
The Mental Health Association of Essex County will provide supportive services to the development’s special needs residents, including case management, supportive counseling, money management/payee and other services, the news release said. The services will be funded through sources including the state Department of Human Services, Division of Mental Health and Addiction and the Mental Health Association of Essex County.
“Carrino Plaza will enhance the ongoing revitalization of Newark, while providing much needed affordable homes for families who are working in and around Newark and contributing to the city’s dynamism,” said Lt. Governor Sheila Y. Oliver, commissioner of the New Jersey Department of Community Affairs and chairwoman of the NJHMFA board. “Importantly, this development also continues our collective efforts to provide supportive housing for people with special needs.”