So you want to live in Jersey City? Here are a few numbers to consider.
A June 1 article on a CNN website (www.money.cnn.com) found that the median house price in Jersey City was $300,000, and that prices have more than doubled over the past five years.
Condominium prices in Jersey City average $550 per square foot, or range from $550,000 to $1 million dollars per condo.
Single and multi-family houses in Jersey City for sale in this week’s issue of the Jersey City Reporter went as high as $1.5 million for a circa 1860 four-story brownstone near Hamilton Park.
According to the statewide Association of Community Organizations for Reform Now (ACORN), the current market rent for a two-bedroom rental apartment in Jersey City is $1,100 per month, but 56 percent of Jersey City residents cannot afford that.
A representative of the Jersey City-based Fairmount Housing Corporation estimated recently that 20 percent of Jersey City renters spend 50 percent of their income on rent.
But Jersey City recently took steps to help low- and middle-income residents stay in town.Developers must donate $1,500 per unit
The City Council, at its Sept. 28 meeting, approved an amendment to the city’s Affordable Housing Trust Fund, into which local developers are required to contribute.
The amendment will establish a spending plan for monies accumulated in the trust fund, which have reached at least $4 million.
The fund was established in October 2003. Developers must contribute in order to get a special tax rate.
Contributions are not required from developers of market rate housing if they set aside 15 percent of their units for affordable housing. Otherwise, they must contribute $1,500 per unit they build.
If they instead build commercial space they must donate $1.50 per square foot. For industrial space, the rate is $ .10 per square foot.
The recent amendment sets guidelines on how to spend the $4 million in funds, and who will get the development rights. Spending plan
The amendment specifies how much housing should be set aside for low-income families, disabled residents, and homeless residents.
It also describes how the money is given out, and which qualifications a developer must possess to qualify for the funds (see sidebar).
Affordable housing advocates such as Annemarie Uebbing of the Jersey City Affordable Housing Coalition and Christopher Auth, executive director of the Fairmount Housing Corporation, lauded the decision. But they said there are still unsettled issues regarding the trust fund.
One of the issues involves the contribution amount from developers of market rate housing. At past meetings, local residents have spoken out in favor of increasing the $1,500 per unit contribution. But Mayor Jerramiah Healy and Council President Mariano Vega have both cautioned that developers would be discouraged from building in the city if they were required to contribute more.
Housing groups are also concerned that land is scarce for affordable housing. Habitat for Humanity
While the council decides its next step, there is another bright light in the search for affordable housing – and this one arises from corporate donations.
This Wednesday, there will be a groundbreaking at a vacant lot on Ocean Avenue. It will be the site of the first homes in the city to be constructed by Habitat for Humanity, a charity that uses corporate donations and volunteers to build homes in distressed areas.
In fact, the future homeowners themselves must demonstrate need, then volunteer for approximately 400 hours throughout the year to build their homes. They also pay off the mortgage at a low rate after they move into their homes.
Habitat for Humanity International (HFHI) is a non-profit, non-denominational Christian housing organization started in 1976 by Millard and Linda Fuller in Americus, Ga. In 28 years, the organization has built more than 175,000 homes in 3,000 communities worldwide. They have attracted volunteers like former President Jimmy Carter.
The homes on Ocean Avenue are slated to be built early next year, and the cost will be $85,000 per home. Fairmont Housing
Christopher Auth of Fairmount Housing Corporation said last week that in the past, his own group built 123 units of affordable housing in Jersey City and Bayonne, but the corporation has not embarked on any new construction in nearly five years. He said this was mainly due to the cost of acquiring land.
“There was a time 10 years ago when you could acquire land in Jersey City for a reasonable amount, sometimes as low as $1,” said Auth. “Now land costs in the millions to acquire, and Fairmount Housing Corporation does not have that kind of money.”
Margaret Cook-Levy, president of the Board of Directors of the Habitat for Humanity for Greater Jersey City, said last week the city’s affordable housing trust fund will benefit organizations such as HFHI, but only if there is land available to build upon.
Cook-Levy was part of the negotiations with the city to acquire the Ocean Avenue site three years ago during late Mayor Glenn D. Cunningham’s administration. The land was donated to HFHI since the company has few funds for acquisition.
“Most land in this city is being seized by speculators.
There has been a good relationship with the city with the various mayors being enthusiastic about us building here,” said Cook-Levy. “But there’s money to be had with allowing developers to build market rate housing rather than affordable housing.” Ricardo Kaulessar can be reached at rkaulessar@hudsonreporter.com Sidebar Terms of the amendment
Here are the terms of the council amendment that will determine how to spend more than $4 million in funds for affordable housing:
* A minimum of 30 percent of the funds will be dedicated to very low or special needs housing for senior citizens, the disabled, and the homeless, with at least 10 percent reserved for housing for large families.
* Ten percent should go to pre-development; 10 percent will be retained by the city as administrative fees for creating offices for local community development corporations, and the balance will be committed to construction.
* Funds will be used solely for the rehabilitation or preservation of existing low and moderate affordable housing or the construction of new low or moderate-income affordable housing.
* Funds would be awarded as reimbursable loans supplementing other private or public money needed to complete the projects.
* Builders must provide proof that they are either a non-profit or for profit company set up to construct affordable housing, along with other requirements.
* Construction of an affordable housing project must start no later than a year from the time monies are awarded.