Federal HOME funds available to help subsidize affordable projects in Newark

As published on NJBIZ

The City of Newark along with Mayor Ras Baraka issued a request for proposals (RFP) on Monday seeking developers to provide affordable housing subsidized by Federal HOME funds.

Newark’s Economic and Housing Department said it is accepting proposals from for-profit and nonprofit developers with the ability to develop housing that is affordable for low and very low-income residents.

The HOME program defines very low income as 50 percent of Area Median Income and low income as 51-80 percent of Area Median Income.

“HOME funds are one of the important tools we use to carry out Mayor Baraka’s equitable growth priority of ensuring that new development and affordable housing benefits residents of all of Newark’s neighborhoods,” said Acting Economic and Housing Department (EHD) Director Allison Ladd. “These funds help us to expand jobs for low income residents, assist in the growth of Newark small minority and women-owned businesses, provide transitional housing for the homeless, housing for large families and expand the use of sustainable/green building practices.”

The total amount of subsidy funds available under this RFP will be approximately $3 million, of which $1.3 million remains from prior year HOME allocations and the balance comes from the 2020-2021 federal HOME allocation, which is yet to be announced.

The proposed projects must do one or more of the following: increase affordable rental housing opportunities for low-income households; increase availability of sustainable housing options; create transitional and permanent supportive housing for individuals and families with special needs; and comply with other projects and activities allowed under the HOME Program regulations, consistent with the city’s Consolidated Plan.

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