Another Large Housing Project In Newark Gets Tax Break From NJ

NEWARK, NJ — Another large housing construction project in Newark has qualified for a multi-million dollar tax break from the state, officials recently announced.

The board of the New Jersey Economic Development Authority (NJEDA) approved tax credits for real estate projects in Newark and Woodbridge during its meeting last week.

In Newark, a housing project at 930 McCarter Highway – across from the New Jersey Performing Arts Center – will include 333 residential units. That will break down into 265 market rate units and 68 affordable units, according to the NJEDA.

The 25-story high-rise building – developed by Boraie Development LLC – will also include 3,124 square feet of commercial/retail space and four stories of structured parking, with 240 parking spaces for resident use.

The 1.1-acre site is about a 10-minute walk from Newark Penn Station, state officials noted.

The co-applicant is Elizabeth Development Corporation, a nonprofit which has signed an agreement to provide “economic, civic and social welfare” programs for residents at the building.

What kind of tax break will the project receive? According to the NJEDA:

“The project was approved for Aspire tax credits equivalent to 60 percent of total project costs up to $90 million. The project is also supported by Low-Income Housing Tax Credits through the New Jersey Housing and Mortgage Finance Agency.”

The tax credits were approved under the state’s Aspire Program. Eligibility requirements include showing that the proposed project will “result in a net positive benefit to the state,” and that it wouldn’t be “economically feasible” without the tax break.

All residential Aspire projects must include 20 percent affordable housing, with the exception of those that are solely renovations and don’t include the creation of new units.

New Jersey Assemblywoman Eliana Pintor Marin (NJ-29), a prime sponsor of the legislation that led to the Aspire program, said the credits for the project at 930 McCarter Highway are an example of “promoting mixed-use, transit-oriented projects in communities that need it most.”

Newark Mayor Ras Baraka agreed, adding the following comment about the project:

“I want to thank the New Jersey Economic Development Authority for supporting our efforts to build both market-rate and affordable housing. Our administration has made those efforts one of our highest priorities, working with private and public partners to achieve high-amenity convenience and comfort in residents’ housing. By adding this outstanding addition to our downtown, we will simultaneously create construction jobs, retail space and parking upgrades that enhance Newarkers’ overall living experience.”

The creation of housing – particularly affordable housing – has been a perpetual need in Newark, the state’s most populated city.

• Read More: Corporations Own Most Of Newark's Homes. New Laws Are Pushing Back

‘ASPIRE’ IN NEWARK

The NJEDA has recently awarded Aspire tax credits to several other large housing projects in Newark.

In February, state officials announced that construction project that will create an apartment and commercial building near the New Jersey Performing Arts Center – which has been dubbed as the “NJPAC District” – has been approved for a tax credit that can potentially reach 60 percent of the total eligible project costs, up to a maximum of $199.69 million. It will include a residential component, known as ‘ArtSide,’ which will be comprised of 350 units of housing. Read More: Real Estate Project Near NJPAC In Newark Gets Huge Tax Break From NJ

In September 2023, the state agency approved up to $90 million in tax credits for a new, 14-story building at 81-93 Orange Street, which is located across the street from NJ Transit’s Broad Street Station. Read More: NJ Approves $90M Tax Break For Housing Project In Newark

Last June, a 23-story high-rise project in the city’s downtown Central Business District was approved for nearly $50 million in potential tax breaks. The location is within walking distance of Newark Penn Station, the Newark Light Rail, and several bus stops. Read More: High-Rise In Newark With Affordable Units Gets $50M Tax Break From NJ

And last July, the NJEDA announced that a new affordable housing building for seniors – the Terrell Homes project – will get an $8.9 million boost. Read More: Affordable Senior Housing Building In Newark Gets $8.9M Tax Credit

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