55-And-Over Housing Building Will Replace Hoboken Parking Lot

HOBOKEN, NJ — Rents in Hoboken have risen to become among the highest in the country, and although state and city rules say increases can't be "unreasonable," the law is not always enforced.

To protect those entering their senior years, the city plans to construct an affordable 36-unit building for seniors on a vacant parking lot, with development beginning in 2025.

"It will be open to residents 55 years old or older," said a city spokesperson. "The wait list will not be launched until near the completion of construction."

"This new development will help prevent dozens of our valued seniors, the backbone of our city, from being priced out of Hoboken and ensuring
they can continue to afford to live in our great city," said Mayor Ravi Bhalla on Thursday.

The city will create the 36 units of deed-restricted senior affordable housing at 259 11th St., currently a private parking lot.

The city said that a tenement building on that site was destroyed by a fire in September 1973, which claimed the lives of 11 residents.

The administration and the Department of Community Development have worked on the senior housing plan for four years through a partnership with the developer, Community Investment Strategies, the city said.

Thousands Wait For Housing

Currently, the city has thousands of people on a wait list for affordable housing, as rents continue to climb.

In 2023, the city helped residents whose rents rose more than 25 percent file a lawsuit against a corporate developer, but the suit was dropped.

The city has low-income and senior housing in the southwest corner of the city, and plans to redevelop the buildings over the next ten years, but those units have wait lists as well.

Got Zoning Approval Tuesday

The project received unanimous approval from the Hoboken Zoning Board of Adjustment at its Sept. 24 special meeting.

It will be the first 100 percent senior affordable housing building constructed in over 30 years, the city said.

The building will contain 36 affordable units for seniors in six stories, and a ground floor activity room.

Bhalla. said, "It’s one meaningful project of many we are taking to create more affordable housing in our mile square, and continues to be a major priority for my administration."

“Many seniors living on fixed incomes worry they can’t afford to continue living in our city," said 5th Ward Councilman Phil Cohen, who represents the northwest section of the city.

"For more than 30 years, the city’s land at 11th and Willow has been an uninspired surface lot," he added. "With last night’s unanimous Zoning Board approval, this vitally important project is poised to become a 100 percent affordable housing development, consisting of 36 beautiful apartments for our seniors."

Cohen chairs the City’s Community Development North Subcommittee, which has worked on the project for four years.

“This project means so much to me given the history of the location,” said Vanessa Falco, head of Hoboken's Division of Housing. “As a former legislator and now Division Head for the City of Hoboken, I am extremely proud of the work that was accomplished...I look forward to what’s next in creating and sustaining a more equitable community.”

How It Came Together

Following a Request for Proposals in August 2020, Community Investment Strategies (CIS) was selected as the project’s developer.

The initial plan of 25 affordable senior units could not be financed through DCA’s Affordable Housing Trust Fund Program and evolved into a 36-unit project to secure necessary funding and long-term affordability.

After extensive discussions with the City Council subcommittee and community feedback, the City and CIS agreed to an amended Development Agreement in June 2023, which was followed by a 99-year land lease and a PILOT (Payment in Lieu of Taxes) agreement.

Under the PILOT agreement, CIS will pay 1 percent of annual project revenues to the City in lieu of taxes. The arrangement ensures that the City retains ownership of the land while maintaining the ability to renew deed restrictions, preserving its commitment to affordable housing.

Funding for the project was made possible by the New Jersey Department of Community Affairs (DCA) Affordable Housing Production Fund, the Housing Mortgage and Finance Agency (HMFA) mortgage, the Hudson County HOME Program, Low Income Housing tax credits (LIHTC), and the city of Hoboken’s Affordable Housing Trust Fund.