Resources for
Affordable
Housing
Using HOME
Cook's Pond Senior Housing,
Denville, New Jersey
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| Cook's Pond offers affordable housing for seniors in a high-cost area. |
Morris County, New Jersey, is one of the wealthiest counties in the United States. The county's steep rise in incomes during the past two decades has been accompanied by a strong increase in housing costs. As a result, it has become increasingly difficult for the county's low- and moderate-income residents to secure affordable housing.
The Borough of Madison, one of the county's 39 municipalities, established its housing authority in 1970; for more than 20 years, it successfully administered public housing and a Section 8 rental assistance program. By the early 1990s, however, the Madison Housing Authority (MHA) board and staff recognized that there were needs beyond the scope of the existing programs. At the same time, the State of New Jersey had begun to implement its mandate that all municipalities provide an appropriate proportion of affordable housing. Consequently, the MHA began to identify opportunities to expand affordable housing opportunities in this community of about 16,000 people.
In 1992, the MHA established a nonprofit organization, the Madison Affordable Housing Corporation (MAHC), to help gain greater access to a variety of resources, including HOME. By 1994, the MAHC had developed 12 units of affordable housing for seniors adjacent to the Madison central business district (see HOMEfront, vol. II, no. 2, August 1996). Following this successful development, the MHA executive director and staff determined that they might be able to help other local housing authorities and nonprofit organizations undertake similar projects and began to market the MAHC's services as a consultant or development partner.
In 1998, nearby Denville Township contracted with the MHA and the MAHC to develop 70 units of affordable housing for low- and moderate-income seniors on a site owned by the township and overlooking Cook's Pond, a 20-acre reservoir. The MAHC was the developer of the project--assembling the development team, putting together the necessary financing, and marketing the units. Denville Township, which does not have its own housing authority, made a strong commitment to the project by having staff actively participate on the development team, expediting the necessary approvals and permits, and contributing $1.8 million to the development budget.
Project funding for Cook's Pond also included low-income housing tax credits, a grant from the New Jersey Balanced Housing Fund, and a substantial grant from the Morris County HOME program. The HOME grant was the first funding awarded to the project and was a key element in convincing other funders and lenders to participate.
Construction of Cook's Pond began in March 1999 and was completed in June 2000. By August 2000, the development was fully occupied. The MAHC marketed the units, in accordance with state regulation. There has been a long waiting list since the project was completed.
In addition to its 70 units, Cook's Pond includes a community room and an arts and crafts room that flank a two-story, glass-walled atrium overlooking the pond. Office and laundry facilities are near the entrance and are secured by a card access/telephone entry system and closed-circuit monitoring. Each unit has emergency pull cords in the bedrooms and bathrooms.
Resident services are coordinated by a Denville Township social worker. The county nutrition program provides hot meals three days a week in the community room, and there is onsite medical screening, mental health counseling, financial counseling, and income tax preparation. The township provides transportation to downtown shopping, as well as trash removal and snowplowing.
The development is managed by the MAHC in conjunction with the MHA. Management responsibilities include occupancy, admissions, and all tax credit compliance issues. The authority, which staffs the MAHC, collects a management fee.
Since the completion of Cook's Pond Senior Housing, the MHA has received several requests for help in developing affordable family and senior housing. The authority has contracted with one municipality and is currently negotiating with two others. Fees generated from these developments have made and will continue to make a substantial contribution to the authority's budget and activities.
The development of Cook's Pond clearly demonstrates the positive impact that a small but experienced local housing authority can have outside its own community by sharing its expertise. The MHA, through its affiliated nonprofit corporation, has benefited by earning considerable development and management fees and reducing its dependence on federal funding. The communities in which the authority has developed high-quality, much-needed affordable housing have certainly benefited: they have added units without having to become adept at every aspect of the development process or having to rely on for-profit developers.
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Contact: Louis Riccio, Executive Director,
Madison Housing Authority,
973-377-0258, madisonha@worldnet.att.net