CRDA has been granted $60 million specifically earmarked for housing development in the CRDA district.
CRDA seeks projects that are 80% market rate and 20% affordable and has designated a portion of its funding for small projects (less than 20 units). CRDA requires its funds to be leveraged by private lending and/or equity contributions and the amount of assistance and its nature are determined on a case by case basis.
In defining CRDA assistance, the Authority will first examine financing gaps that may exist between the cost of construction and completed value; and secondly for gaps that may exist between completed value and private debt and equity. Each will be quantified for possible CRDA assistance. The assistance may take the shape of equity with preferred status, a traditional mortgage, or ‘soft’ second mortgages. Development budgets will be reviewed for consistency with marketplace costs, per unit subsidy amounts, developer fee percentage, contingency and capital and operating reserves, and the certainty of other funding sources.
In order to have your proposed project considered, please provide the following:
Cover letter describing the project, including address and ownership information and identifying the need for and amount of CRDA assistance requested;
Development Budget including sources and uses, hard and soft construction estimates;
- 15 Yr Operating Pro Forma showing rent and revenue, maintenance and operating expenses, taxes, debt service coverage capacity, cash flow projections.
A review by staff and the Housing Committee will occur to determine eligibility for funding and a draft term sheet will be prepared usually within 30 days. Full and formal Consolidated Application will be necessary prior to Housing Committee formal action and subsequent information requests may include, but not be limited to appraisals, commitment letters, construction bids and associated contracts, insurances and bonds.
Funding assistance must be approved by the full CRDA Board upon recommendation of the staff and the Housing Committee.