Rad II Facilitates Extensive Rehabilitation and Extends Rental Subsidies for Seniors in Jersey City

HUD Region II RA Lynne Patton and HUD NJ Field Office Director Maria Maio-Messano pose with Carlos Santiago, and his colleagues; Jersey City workers hired through the Section 3 program.

Ocean Towers, a 10 story building that has been the home of dozens of Jersey City seniors since 1973, recently underwent extensive rehabilitation through a RAD II conversion. This is a great example of how a public-private partnership can revitalize a neighborhood and improve the quality of life of its residents.

HUD Region II Regional Administrator Lynne Patton delivered remarks at the reopening celebration joined by Michaels Development Company VP Nicholas Cangelosi, Jersey City Mayor Steve Fulop, Jersey City Council President Rolando Lavarro Jr., And Carlos Santiago, one of the Jersey City workers hired from a work-training program administered through the Jersey City Housing Authority's Section 3 program.

Financing for the $15.5 million renovation included a $6 million permanent loan from Citi Bank as well as $4.5 million in Tax Credit equity raised through the sale of Federal Low-Income Housing Tax Credits, syndicated by Riverside Capital. The project also benefited from a Seller Loan from The Michaels Organization in the amount of $3.5 million, a U.S. Department of Housing & Urban Development IRP Loan of $1.15 million, as well as a $350k Deferred Developer Fee. NJHMFA also provided a tax-exempt construction loan in the amount of $8 million.

"Ocean Towers is the quintessential example of HUD's newfound priority to streamline efficient and effective services on the ground," said Lynne Patton, HUD Regional Administrator. "By freeing up previous financial commitments and converting it to a Rental Assistance Demonstration (RAD) II Project, Ocean Towers residents now have a beautiful home with financial stability for years to come."

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