Community Asset Preservation Corporation

Community Asset Preservation Corporation (CAPC) is the first nonprofit of its kind: an entity equipped with the financial strength, regional reach, and real estate expertise to arrange creative large-scale acquisitions of pools of hard-to-reach foreclosed properties.

CAPC then utilizes its strong partnerships with local community developers to ensure these properties are redeveloped into quality affordable housing.  CAPC became affiliated with New Jersey Community Capital as its real estate development subsidiary in 2009, and has since acquired over 600 housing units for redevelopment.

CAPC continues to expand, incorporating multi-unit property acquisition, direct property rehabilitation, and scattered-site property management into its toolbox to ensure it can meet a wide variety of homeownership and rental housing needs in low-income communities across New Jersey.  With continued growth and versatility, CAPC will have a transformative effect in the stabilization of distressed New Jersey neighborhoods and will serve as a model for community revitalization across the country.

Stabilizing Communities

Since 2009, CAPC has been involved with over $100 million in real estate development projects. CAPC has utilized REO bulk-purchases, multi-unit property acquisitions, and properties attained via spot blight eminent domain to return over 475 housing units to active use. CAPC understands that using a wide variety of tools is critical to having real impact on neighborhoods.

Building Partnerships

CAPC has a proven track record of not only quickly rehabilitating properties into affordable, quality housing, but also of reinforcing the value and power of strategic partnerships.

Beginning in 2014, CAPC is now partnering with a variety of city and state agencies to provide project-based rental vouchers to very low-income individuals and families. CAPC currently has 17 units where project-based vouchers are being used by formerly homeless, formerly incarcerated, chronically disabled, and/or veteran individuals and families. In the next 12 months, CAPC plans to occupy another 40 units that will be assigned project-based vouchers. These vouchers will also be targeted for use by families and individuals living at or below 50% of the area median income.

Three vacant, derelict factory buildings in the Central Valley Redevelopment Area in Orange, New Jersey are undergoing development as emerging market condominiums and artist commercial space. These buildings are all part of the former F. Berg Hat Factory Complex, the largest single symbol of the neighborhood’s decline over the past three decades. The three buildings include the 1864 classic red brick factory building, the attached seven-story poured concrete hat factory built in 1907, and the adjacent former hat factory Powerhouse built in the 1800s. In April 2015, HANDS and CAPC began converting the two factory buildings into thirty-two residential condominiums and ten artist work spaces. This project is being jointly developed by Housing and Neighborhood Development Services, Inc. (HANDS) and CAPC. The financing is being provided through NJ Housing & Mortgage Finance Agency’s CHOICE program and Community Housing Capital, a national Community Development Financial Institution based in Georgia. The development also received substantial grant support from the New Jersey Department of Community Affairs’ Neighborhood Revitalization Tax Credit (NRTC) program. This project will have a catalytic impact on the Valley Arts District of Orange and West Orange. It will also reestablish the market for homeownership in the Valley and continue to stabilizing other projects already development in the area. The lofts are will be completed and fully occupied in August 2017.

The Lincoln Park Condominium project created 18 new for-sale condominium units at 462-466 Washington Street (6 units) and 478-480 Washington Street (12 units) in the Lincoln Park neighborhood of Newark. The project was being developed by a joint venture of Lincoln Park Cultural District (LPCCD) and Community Asset Preservation Corporation (CAPC), two leading non-profit affordable housing developers in Newark. Eight units are restricted for households making 80 percent of Average Medium Income (AMI) or less. The proposed project has re-ignited development in a neighborhood that had begun revitalizing before the real estate market collapse in 2008 and now has numerous vacant parcels sitting and waiting for new market activity. The total development costs to construct this project are $4.5M. The projected costs were paid through construction financing and a combination of grant sources that includes: Neighborhood Revitalization Tax Credits (NRTC), Newark HOME funds, and New Jersey Housing and Mortgage Finance Agency (NJHMFA) Choice Subsidy. The City of Newark made the completion of these units a top priority and pledged significant support towards this development. Both buildings are now complete and are fully occupied.

Impact

With each project, CAPC impacts both the neighborhood and municipality by:

Increasing the affordable housing stock in target neighborhoods. Each year CAPC returns between 100 and 125 affordable units to active use. Over 80 percent of these units are affordable to low and moderate income households.

Adding significant value to both rehabilitated homes and neighboring properties. Each property rehabilitated by CAPC receives between $100,000-$125,000 in investment. CAPC’s approach continues to stabilize neighborhoods by restoring the value lost to surrounding homes, helping to reverse the negative impacts that vacant and foreclosed properties have on neighboring homes adding to the economic strength of the neighborhood.

Spurring economic activity through the creation of jobs and timely collection of property taxes. CAPC’s approach to housing rehabilitation places a strong emphasis on the creation of local jobs. Additionally, each city stands to benefit greatly from tax revenue collected in a timely manner as homes are rehabilitated and returned to active use.

CAPC Highlights

  • 60 homeownership units were rehabbed and sold in FY17
  • CAPC returns 100 – 125 affordable units to active use annually; Over 80% are affordable to low and middle income families
  • CAPC invests $100,000 – $125,000 to rehabilitate each property
  • As of August 2017 CAPC had developed 200 units of rental housing throughout New Jersey to meet the needs of individuals who are not able to purchase a home

Additional Resources

For more information about CAPC, including information about homes for sale and rental,

visit www.capcnj.org

To reach CAPC’s office, call 973.841.2674 or write to

CAPCinfo<at>njclf.com