Housing Project In Newark Will Have Hospital Clinic On Ground Floor

NEWARK, NJ — A public/private partnership will bring dozens of new “affordable rental apartments” and a medical clinic to the Fairmount neighborhood of Newark, officials say.

On Monday, elected officials and developers gathered at 250 Georgia King Village to “lay the foundation” for a mixed-income housing project that will be located on a portion of the property. When complete, it will have 78 affordable rental apartments, including 16 units for homeless individuals and families supported by the New Jersey Department of Community Affairs’ Housing Choice Voucher Program, and 30 units supported through project-based rental vouchers from the Newark Housing Authority.

The $42 million building will also include a ground-floor clinic and hospital office space operated by University Hospital.

According to a news release, the project is being developed under the New Jersey Housing and Mortgage Finance Agency’s (NJHMFA) Hospital Partnership Subsidy Program. It is being financed through a combination of public and private capital, including $18 million in tax credit equity from Wells Fargo, $22 million in mortgage financing from NJHMFA, $1.6 million from the NJHMFA Special Needs Housing Trust Fund, $6 million from the Hospital Partnership Subsidy Program, and $3.5 million from the Multifamily Rental Housing Production fund, as well as $3 million from University Hospital, $300,000 in HOME funds from the City of Newark, and $300,000 in HOME funds from Essex County.

Under the program, the NJHMFA matches funding contributions from participating hospitals to provide affordable rental apartments for low- and moderate-income families, as well as apartments with access to supportive and wrap-around services for residents with special needs.

New Jersey Lt. Gov. Sheila Oliver and other state, county and local leaders joined L+M Development Partners, Type A Projects, MSquared and University Hospital at Monday’s ceremony.

“Today we laid the foundation on the development of 78 affordable rental apartments that will serve low- and moderate-income households in the Fairmount neighborhood of Newark in partnership with University Hospital,” Oliver said.

“There is a direct correlation between limited access to health care and homelessness,” Oliver added. “This innovative hospital and housing partnership is designed to help our most vulnerable populations move forward and break the cycle of homelessness in Newark.”

• See related article: 'Affordable' Isn't Affordable: Newark's Plan To Create More Housing
• See related article: Who Owns Newark? City Fights Against Corporate Home Buying Spree

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