Division of Community Development
30 Montgomery Street
Jersey City, NJ 07302
Tel: (201) 547-6910/ 5916/4747
Fax: (201) 547-5104
Carmen Gandulla, Director
Click the following link to receive Community Development Announcements
City of Jersey Draft Consolidated Plan:
For further information, please contact the Division of Community Development at 201-547-6910 or 201-547-5916.
Section 108 Change of Use (24 CFR Part 505)
The City of Jersey City intends to build a new Martin Luther King, Jr. City Hall Annex on a section of the parking lot at the MLK HUB Shopping Plaza, 360-398 Dr. Martin Luther King Drive. The Shopping Plaza was partially funded by a Section 108 loan. In order to proceed with new financing of the Annex, the City will need to secure the release of HUD’s lien on the Annex’s site. The City has submitted a subdivision for the Lot to separate the Annex site from the rest of the Shopping Plaza.
This action constitutes a change of use under 24 CFR Part 505. The regulations require that the City advertise and provide the public with an opportunity to comment. The proposed construction of the City Hall Annex is not an eligible use under the Community Development Block Grant regulations that govern the Section 108 Loan Program. Therefore, the proceeds of the sale of the parcel to the City must be used to repay that portion of the Section 108 loan.
HUD Loan Number/Project Name
The Section 108 loan is B-95-MC-34-0108/MLK HUB. The original loan was for $7 million which was refinanced in 2008 to include a $4.5 million loan with a balloon payment of approximately $3.86 million in August 2018. Annual Payments of principal and interest are approximately $480,000 a year which are paid by the Jersey City Redevelopment Agency.
Project Description and History
The City built the Shopping Plaza (through the Jersey City Redevelopment Agency) as an economic stimulus for the neighborhood during the 1990s. It consists of a strip mall and a large, surface parking lot. The Shopping Plaza has struggled to survive since its inception.
The City invested Section 108 loan funds to acquire and develop the MLK HUB Redevelopment parcels and cleared the site for an economic development purpose that included the development of the shopping center. The Martin Luther King Drive Urban Renewal Joint Venture Partnership now operates the shopping center. This partnership is composed of the Jersey City Redevelopment Agency and a private developer, Hub Partners, LLC.
At the same time, the City maintains rented offices in other locations around Jersey City. The new Martin Luther King, Jr. City Hall Annex will provide permanent space for these offices in a convenient location. MLK “HUB” refers to the fact the plaza is a key transit hub (buses and light rail) for the area.
Security of the HUD Lien
The construction of the City Hall Annex will add value to the Shopping Plaza; consequently improving the security of HUD’s lien. At the same time, the proceeds from the sale of the subdivision ($600,000) will be directly applied to the HUD loan payments.
Over 200 City employees will report to the new building Monday through Friday (and dozens on weekends). They will shop at local shops, dine at local eateries In the Plaza. City Offices that require visits from the public (for example, the Building Department, Alcohol Beverage Control, and Food Service Licensing) will bring even more foot traffic. The City’s Police Department will also be present in the building, adding significantly to the Plaza’s safety.
1) Regulations – 24 CFR Part 505 - Use of Real Property
2) Appraisal -- for $600,000 (to be applied to the next HUD 108 Loan payments)
3) Site Plan -- showing the new building on the southwest corner of the parking lot
4) Aerial Photo -- showing the current layout of the plaza (note the large parking lot)
5) Elevation Drawing – showing the proposed design of the new Annex
The Division of Community Development develops and rehabilitates both housing and public facilities and provides services through partnerships with various public agencies, not-for-profit organizations and for-profit developers.
Community Development is also responsible for administering numerous grants including Community Development Block Grants (CDBG), Community Services Block Grants (CSBG), and Emergency Shelter Grants (ESG).
Community Development is also a vital part of the Mayor's Quality of Life Task force.
Community Development Block Grant (CDBG)
The Community Development Block Grant program works to ensure decent affordable housing, to provide services to the most vulnerable in our communities and to create jobs through the expansion and retention of businesses, such as the Neighborhood Stabilization Program.
Block Grant (CSBG)
The City of Jersey
City is prepared to accept applications for FY2009-2010 Community Services
Block Grant (CSBG) funds. It is anticipated that approximately $900,000.00 will
be available to help provide a range of services and activities having a
measurable and potentially major impact on the causes of poverty.
Golden Neighborhoods Homeownership Program (GNHP)
The Golden Neighborhoods Homeownership Program will provide increased opportunities for low/moderate income families to purchase a home in Jersey City. The program is administered by the Division of Community Development. This program provides down payment and closing costs assistance for eligible first time homebuyers. This program alleviates the major impediments of buying a home. It also gives prospective homebuyers the skills and knowledge necessary to purchase and maintain property.
Home Owner Rehabilitation Program (HORP)
The Home Owner Rehabilitation Program (HORP) is administered by the Division of Community Development (DCD). This program provides grant funds to eligible low/moderate income homeowners for needed repair and rehabilitation of their homes. Eligible properties may be from 1-4 units and condominiums do not qualify. The maximum grant that a homeowner may receive is $24,900 per unit. The grant is structured as a 10 year (HORP) self liquidating lien which is placed on the property upon the completion of repairs. This program has income eligibility guidelines. Applications are available on an ongoing basis.
Home Investment Partnerships Grant (HOME)
The Home Investment Partnerships grant is the largest Federal block grant to State and local governments designed exclusively to create affordable housing for low-income households. The program is designed to reinforce several important values and principles of community development, such as empowering people and communities to design and implement strategies tailored to their own needs and priorities and expanding & strengthening partnerships among all levels of government and the private sector in the development of affordable housing.
Housing Opportunities for Persons With AIDS (HOPWA)
The Housing Opportunities for Persons with AIDS program provides housing assistance and related supportive services for low-income persons living with HIV/AIDS and their families. Since the program’s inception in 1992, HOPWA has helped thousands of Americans with HIV/AIDS avoid homelessness by addressing their housing needs in coordination with access to medical and other care.
Emergency Solutions Grant (ESG)
The Emergency Solutions Grants program provides homeless persons with basic shelter and essential supportive services. It can assist with the operational costs of the shelter facility, and for the administration of the grant. ESG also provides short-term homeless prevention assistance to persons at imminent risk of losing their own housing due to eviction, foreclosure, or utility shutoffs.
Affordable Housing Trust Fund (AHTF)
These funds have been made available through Long Term Tax Exemption contributions under N.J.S.A. 40A:20-1 et seq. All funds are to be used for the rehabilitation or preservation of existing low or moderate income affordable housing, the construction of new low or moderate income affordable housing or, in limited instances, funds may be used for the acquisition of property for the purpose of creating affordable housing.
City of Jersey City's 2010 - 2014 Consolidated Plan
Fair Housing Choice Analysis Impediments To Consolidated Plan –Annual Performance And Evaluation Report - 2012 (CAPER)
Stimulus Funds/American Recovery &Reinvestment Act 2009 (ARRA)