Aspire Program Approves $20M in Tax Credits for Senior Housing

On Oct 16, 2023

The New Jersey Economic Development Authority (NJEDA) has approved two additional senior residential development projects for Aspire awards. The two projects, one located in Newark, and the other in Washington Township, will include 164 housing units for seniors, all of which will be affordable.

To date, the NJEDA has now approved a total of $294 million in Aspire awards for residential projects, leading to the creation and preservation of over 1,500 housing units, nearly 70% of which will be affordable. With the latest development projects that were approved, a total of four senior residential developments, all 100% affordable, have been approved for Aspire awards. Both projects are also benefitting from financing provided by the New Jersey Housing and Mortgage Finance Agency’s Low Income Housing Tax Credit program.

“The Aspire Program continues to support affordable residential development for seniors and hardworking families across New Jersey,” said NJEDA Chief Executive Officer Tim Sullivan. “Today’s approvals are fulfilling Governor Phil Murphy’s goal to ensure New Jersey’s seniors have access to safe and affordable housing options. Through the Aspire Program, the NJEDA will continue investing in communities, supporting families and seniors, and creating a stronger, fairer New Jersey.”

Aspire is a place-based economic development program created under the New Jersey Economic Recovery Act of 2020 (ERA) to support mixed-use, transit-oriented development with tax credits to commercial and residential real estate development projects that have financing gaps. All residential Aspire projects must include at least 20 percent affordable housing. As a performance-based program, projects must certify that all commitments established at time of approval have been met before receiving their first disbursement of tax credits.

The development project in Newark, known as Forest Hill House, consists of the acquisition and rehabilitation of an existing senior apartment building and was approved for over $8.18 million in Aspire tax credits. The 10-story building located at 505 Mt. Prospect Avenue, consists of 100 housing units, including studios and one-bedroom units, as well as multiple common spaces and 25 parking spaces.

Forest Hill House has served as a senior residential building since it was built in 1977. The lead developer, Tredway Group LLC, will oversee a large-scale overhaul of the building, including heating system, roof, and window replacements and security system, kitchen, and bathroom upgrades. The rehabilitation will also include a transition to energy efficient lighting and appliances and upgrades to make the building more accessible for handicap residents.

A new affordable senior housing development project in Washington Township, Gloucester County was approved for over $12 million in Aspire tax credits. The new construction, three-story building, which will be built on a vacant lot at 4500 Black Horse Pike, will offer 64 one- and two-bedroom units. The building will also offer a community room with a kitchen, a fitness room, and a laundry room, as well as 99 parking spaces for residents. Ingerman Development Company LLC is the lead developer for the project.

The Aspire program rules include provisions, such as a gap financing review and excess revenue sharing requirements, to ensure tax credits are awarded responsibly.

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