NJ Approves $90M Tax Break For Housing Project In Newark

NEWARK, NJ — A housing project in Newark located near a busy train station will be getting a multi-million dollar boost through a state-run tax credit program, officials announced Wednesday.

The New Jersey Economic Development Authority (NJEDA) board approved up to $90 million in tax credits for a new, 14-story building at 81-93 Orange Street, which is located across the street from NJ Transit’s Broad Street Station.

The tax credits were approved under the state’s Aspire Program. All residential Aspire projects must include 20 percent affordable housing. The program rules include provisions to ensure that tax credits are awarded responsibly, such as a gap financing review and excess revenue sharing requirements, officials say.

According to the NJEDA, here are some details about the new mixed-use building that will be coming to Orange Street:

“The 14-story high-rise, which will replace a surface parking lot, will be comprised of 350 residential units, 8,500 square feet of retail space and a commercial parking garage. The units will be a mix of studio, one, two and three-bedroom units. Seventy units will be reserved as affordable units, while the remaining will be market rate. Residents of 81-93 Orange Street will be able to enjoy a pool, health club, spa, work from home space and electric vehicle charging stations. The project is strategically located across the street from Newark’s Broad Street Station, giving residents access to NJ Transit train and bus service and the Newark Light Rail.”

The $90 million in credits greenlighted by the NJEDA represent about 60 percent of the eligible project costs, which came to $150 million, the agency said.

The NJEDA’s announcement got a thumbs-up from Senate Majority Leader Teresa Ruiz, who represents Newark in the 29th Legislative District.

“When we created the Aspire Program it was with the intention of facilitating greater investment in our communities and breathing new life into underutilized spaces,” Ruiz said.

“This project will do just that, taking a parking lot and using it to spur economic development,” the senator continued. “The site will still offer parking, but will also help with housing shortages, providing market rate and affordable units, in addition to retail space, all within walking distance to a major transit station.”

NJEDA Chief Executive Officer Tim Sullivan agreed with Ruiz.

“The proximity of today’s project to NJ Transit’s Broad Street Station and the city’s downtown makes it ideal for families, commuters and students, and will help create a more prosperous Newark,” Sullivan said.

Mayor Ras Baraka also cheered Wednesday’s announcement.

“This Aspire award helps realize Newark’s Transit Village strategy for building mixed-use developments combining high quality affordable and market housing with retail and commercial space,” Baraka said. “The Broad Street Station will anchor a vibrant neighborhood and vital transportation hub.”

The NJEDA has recently awarded tax credits to two other large housing projects in Newark.

In June, a 23-story high-rise project in the city’s downtown Central Business District was approved for nearly $50 million in potential tax breaks. The location is within walking distance of Newark Penn Station, the Newark Light Rail, and several bus stops. Read More: High-Rise In Newark With Affordable Units Gets $50M Tax Break From NJ

In July, the NJEDA announced that a new affordable housing building for seniors – the Terrell Homes project – will get an $8.9 million boost. Read More: Affordable Senior Housing Building In Newark Gets $8.9M Tax Credit

These three combined residential projects have created 626 units of housing in Newark, including 206 affordable units, the NJEDA said.

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