On Tuesday, March 11, the Municipal Council of the City of Newark voted to approve one of the largest Redevelopment Agreements ever between the City and a non-profit developer.
New Brunswick, NJ (March 19, 2014) – On Tuesday, March 11, the Municipal Council of the City of Newark voted to approve one of the largest Redevelopment Agreements ever between the City and a non-profit developer. The Council unanimously approved Community Asset Preservation Corporation (CAPC), the real estate subsidiary of New Jersey Community Capital (NJCC), to work with the City to oversee redevelopment and reuse of 156 abandoned properties throughout Newark.
CAPC will partner with local non-profit housing developers and Newark-based general contractors to return these vacant and abandoned homes to active use as affordable for-sale and rental housing. The City is acquiring these homes using the Abandoned Properties Rehabilitation Act, which allows cities to reclaim and revitalize neglected properties that would otherwise remain vacant and blighted.
CAPC’s multi-layered approach to addressing vacant and abandoned properties in Newark will have a measurable effect on the revitalization of neighborhoods hit hardest by foreclosure. This groundbreaking initiative is part of NJCC and CAPC’s larger collective vision of developing foreclosure mitigation strategies at the scale necessary to stabilize distressed neighborhoods and improve quality of life for their residents.
“This new and strategic investment by the City of Newark is an important recognition of the critical work we are doing locally on the ground,” said Wayne Meyer, President of New Jersey Community Capital. “Investing in stable homes for families in need is one of the most innovative and cost-effective interventions we can employ to give a fresh start to underserved neighborhoods in Newark, keeping more community residents in their homes and revitalizing vacant properties.”
“The Municipal Council’s approval of the redevelopment agreement with CAPC is a significant piece of legislation for neighborhood development,” added Newark Deputy Mayor Dan Jennings. “The City will buy over 150 abandoned properties throughout all five wards, and CAPC will redevelop them in a way that will benefit the residents of Newark and small, local, minority contractors.”
The innovative agreement builds upon NJCC and CAPC’s strong partnerships and large-scale impact in Newark. Over the past 26 years, NJCC has closed over 160 loans in Newark’s communities, resulting in new investments of over $100 million and leveraging an additional $194 million in capital. These investments have fostered the creation or preservation of over 1,300 housing units, 4,245 new education seats, 2,745 early care slots; and more than 1,300 local jobs. Meanwhile, in the past three years, CAPC has returned 77 housing units in Newark to active use, with another 34 units currently under construction.