Township to Assist Lutheran to Secure Cinnaminson Home Financing

Lutheran Social Ministries is confident in its bid for tax credits, which could cover a big chunk of the cost of the Cinnaminson Home project, but needs an assist from the township to be successful. 

Township solicitor George Morris told committee Lutheran is looking to bump up its score when it applies for the Low Income Housing Tax Credit, administered through the Housing and Mortgage Finance Agency (HMFA). If successful, the tax credits could pay for roughly 70 percent of the $10 million-plus senior affordable housing complex planned for the site on Riverton Road. 

To achieve the highest possible score, the organization needs the township to deem the Cinnaminson Home property an "area in need of redevelopment," and also to establish a PILOT (Payment In Lieu Of Taxes) agreement for it.

Mayor Ben Young noted that the property—previously a nonprofit—has never produced tax revenue for the township, so "anything we get is better than zero."

Brian Vernon, associate director of project development for Lutheran, said the PILOT agreement is absolutely necessary; the organization can't submit its application without one. 

Deputy Mayor Anthony Minniti also pointed out the redevelopment designation had already been discussed and agreed upon in prior talks with Lutheran. 

Morris said Lutheran is also interested in discussing the property's appraisal value, which plays into the tax credit application as well. According to Vernon, if the organization can acquire the property for at least 50 percent—if not more—of the appraised value, it will be awarded more points, and thus more likely to be awarded the tax credit. 

The points associated with the purchase price vs. appraisal value aren't much—it's not as important a factor as the PILOT or the redevelopment designation—but given how competitive the application process is, Vernon said, every point counts.

Young said the property is currently assessed at $300,000—$200,000 for the land, $100,000 for the building.

Committee directed Morris to begin negotiations with Lutheran on the PILOT agreement.

If Lutheran fails in its application for tax credit financing, Vernon indicated it would severely hamper the organization's plans. 

"It doesn't necessarily kill the deal," he said. "We won't walk away ... If we didn't get the tax credits, it would all depend on how close we were."

The deadline to apply is June 21, which is followed by a two- to three-month review process. If the tax credit is awarded to the Cinnaminson Home project, construction could begin within about 90 days. Lutheran representatives have previously said the organization would be in a position to get the project underway in that amount of time. 

Under a best-case-scenario constructon timetable, the project could be complete by December 2014 at the earliest. 

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