JCHA, The Michaels Organization Break Ground on Last Phase of Lafayette Gardens Revitalization

JERSEY CITY, N.J. - Feb. 24, 2015 - PRLog -- City, state, and federal officials today joined executives of the Jersey City Housing Authority (JCHA), The Michaels Organization, and residents of Jersey City to celebrate the groundbreaking of Glennview Townhouses II, the final phase of redevelopment of the former Lafayette Gardens public housing site.

“This groundbreaking signals the last significant step in our successful effort to revitalize this important neighborhood, consistent with Mayor Fulop’s vision to provide quality, affordable housing to all Jersey City residents,” said Assemblyman Raj Mukherji, Chairman of the JCHA.

The groundbreaking ceremony marks the latest milestone in an ambitious undertaking by the JCHA to revitalize blighted neighborhoods by replacing outdated public housing with modern, mixed-income communities offering affordable housing and community amenities to families and seniors of all income levels.

When finished, Glennview Townhouses II will be the seventh rental community to be completed by the JCHA and its development partner, Michaels Development Company, since the JCHA received a $34 million federal HOPE VI grant from the U.S. Department of Housing and Urban Development to revitalize the Lafayette Gardens/Morris Canal area in 2001. Since then, the JCHA and Michaels Development have collaborated on nearly 600 mixed-income residential units both on and off the 12-acre site of the original Lafayette Gardens public housing complex.

“This is an exciting day for the Morris Canal area and for all of us in Jersey City,” said Mayor Fulop.  “Working with the Housing Authority, we have been able to transform public housing into diverse, mixed-income developments where residents are offered access to quality, affordable housing in vibrant communities.  The Housing Authority’s work is becoming a national model of successful public housing revitalization.”

This final phase offers 64 apartment homes in an attractive mix of three- and four-story stacked townhouses and stacked flats. Each town home will have its own private entrance. The units, available in one, two, three and four-bedrooms, will serve residents with a diverse income mix, including:  public housing residents and those with Section 8 vouchers whose rent is tied to their income; low and moderate income residents who need workforce housing at affordable rents; and tenants without income restriction who reside in market rate units. There are 16 units set aside for households who have experienced homelessness. These low-income tenants will pay 30 percent of the income as monthly rent and will receive extensive social services. Regardless of their income level, all tenants will enjoy units with identical amenities.

"In the final phase of this neighborhood transformation, Jersey City will realize a long-term vision that began 14 years ago with funding from HUD's HOPE VI program," said Holly Leicht, HUD Regional Administrator for New York and New Jersey. "The Jersey City Housing Authority's entrepreneurial approach to this project shows what can be accomplished when multiple federal funding resources are aligned, from Disaster Recovery funding to increase community resilience to Project-based Section 8, which will create 16 units of supportive housing for the homeless."

In addition to spacious, energy-efficient apartments, residents of Glennview Townhouses II will have access to the 5,000 square foot multi-purpose community center that was completed in 2008 at the adjacent Barbara Place community. The community will be professionally managed by Interstate Realty Management Company, an affiliate of The Michaels Development Company, which also manages all the communities built in the other phases of the LaFayette Gardens redevelopment.

“The Michaels Organization has been privileged to work in partnership with the Jersey City Housing Authority for more than a decade and we are proud to be a part of bringing the JCHA’s vision for this community to fruition,” said Joel Silver, Regional Vice President of The Michaels Development Company. “We are grateful to the JCHA for their leadership and the Morris Canal community for their support.”  Silver noted that while the work at Lafayette Gardens is coming to an end, Michaels Development and the JCHA recently celebrated the start of the first phase of the Montgomery Gardens revitalization.   “We look forward to our continuing collaboration with the Jersey City Housing Authority in the Montgomery Gardens neighborhood,” Silver said.

Financing for the $21.4 million Glennview Townhouses II development includes $3.3 million in JCHA Capital Funds as well as $6.2 million in Conduit Bonds and $4.7 million in Hurricane Sandy funds from the New Jersey Housing & Mortgage Finance Agency (NJHFMA). The NJHFMA also allocated 9% federal low-income housing tax credits to Glennview II, which raised $9.5 million in private equity for the development.  Prestige Affordable Housing Equity Partners syndicated the tax credits. Bank of America invested in the tax credits and also provided $3.7 million for a construction bridge loan.

Prestige Building Company is serving as the general contractor. Construction is expected to be completed in June 2016.

About the Jersey City Housing Authority
The Jersey City Housing Authority is New Jersey’s second largest public housing authority, serving over 6,700 low-income households and over 16,000 residents, including seniors and the uniquely-abled. The JCHA has been lauded as a champion of quality life enhancements and crime reduction initiatives, energy efficiency and green building practices, policies promoting Section 3 hiring, and an impeccable track record of revitalizing distressed public housing.  A leader in the provision of low-income housing and services, the JCHA’s sterling history of revitalizing distressed neighborhoods has included the receipt of three federal HOPE VI Revitalization Grants. Through HOPE VI, the JCHA has created over 1,040 new mixed-income rental units.

About The Michaels Organization
The Michaels Development Company, Interstate Realty Management, and Prestige Building Company are part of The Michaels Organization, a family of integrated but independent companies dedicated to excellence in affordable, military and student housing. Serving more than 100,000 residents in 360 communities across 34 states, the District of Columbia, and the U.S. Virgin Islands and with a development portfolio valued in excess of $ 3.5 billion, The Michaels Organization is a national leader in the residential real estate industry, with full service capabilities in development, property and asset management, construction, mortgage finance, and tax credit syndication.