Newark Launches Program To Convert City-Owned Properties Into Affordable Housing

Mayor Ras J. Baraka unveiled a Community Redevelopment Initiative. Six vacant or distressed city-owned homes will sell to Newark-based builders for $100 each. An informational session happens Friday, Jan. 30, at 3:30 p.m. The meeting takes place in Council Chambers on City Hall's second floor.

The Department of Economic & Housing Development runs this initiative through the Office of Community Development. Details about the six sites will only be distributed at Friday's session. That's the sole chance for interested parties to obtain application materials.

The builders stand to benefit from a $100 sale price per property, a five-year tax abatement pending City Council approval, and potential grant money to offset qualified fix-up costs.

Every redeveloped unit must rent at 50% of Area Median Income for 15 years. A recorded deed restriction or redevelopment agreement will enforce affordability. The municipality monitors compliance throughout the entire period.

Fix-up work must begin within three months of property transfer. Builders have 18 months from transfer to finish substantial work. All construction must meet zoning rules, building codes, and permit requirements.

Newark-based entities that have finished at least one redevelopment project with the municipality can apply for the initiative. Applicants must have clean records regarding taxes, water, and sewer regulations.

Builders must prove they possess the money and operational ability to finish the project. They must agree to meet affordability, reporting, and monitoring rules.

Applications need to provide a Business Incorporation Certificate, Business Registration Certificate, W-9, and proof of completed project with the municipality. This proof can be a Certificate of Completion or Redevelopment Agreement. Financial documents like a bank letter, lender letter, or financial statement are also required.

Rent caps and tenant qualification will follow city-issued AMI guidelines that are active when leasing occurs. A complete physical application package is mandatory. Incomplete or late submissions won't be considered.

The initiative seeks to return vacant or distressed homes to productive use. It aims to expand affordable housing options and stabilize neighborhoods.