MADISON AFFORDABLE HOUSING CORPORATION

A Not For Profit 501 (c) (3) Corporation

44 Cook Avenue Senior Housing

Denville’s 100 Unit Senior Housing

PURPOSE AND OBJECTIVES

The purpose or goal of forming a not-for-profit entity was to create an entity that would develop affordable housing and have easier access to private financial institutions. This entity would have the ability to work not only in Madison, but also with other municipalities in the county and state. The primary focus was to alleviate the problem of insufficient affordable housing for the elderly in the area who were either homeless, living in substandard housing, overcrowded housing or paying more than 50% of their income for housing. The secondary objective was to create a user-friendly entity that would partner with a municipality to develop their "Mt. Laurel" housing.

In 1990 the Madison Housing Authority determined that, based on its waiting lists for senior citizen housing, and those around the county, it would be approximately 10 years before a unit could be offered to recent applicants. Therefore, the Board of Commissioners decided to pursue the development of additional housing for low income senior citizens.

At the same time the federal government began reducing operating subsidies to housing authorities which had a negative impact on their ability to provide needed services to their residents. Because of the ever growing demand for affordable senior citizen housing in the Northwestern New Jersey area, and the inadequate supply which led to long waiting lists in the region, the immediate housing needs of the elderly were not being met nor could they be met in the foreseeable future. Coupled with this ever increasing demand was the elimination of federal and state government funding for public housing agencies to develop low income housing of this type.

It was therefore, incumbent upon the Madison Housing Authority to devise a solution to this problem which would increase the supply of affordable housing for senior citizens and generate revenues to enable them to continue to provide the services that they had become nationally known for. Since it was impossible to hope for grants from HUD, or increases in operating subsidies, it was necessary to create linkages or partnerships with other not-for-profit groups and the private sector.

The three major obstacles to overcome were the lack of suitable land, the financing to build the building and the partnership required with the municipality. The first was overcome when a substandard two family home in the downtown business district was located. The second major obstacle, the availability of financing was overcome by the Housing Authority creating a "spin-off", not-for-profit corporation, the Madison Affordable Housing Corporation. The Corporation was formed because several private sector lending institutions had previously shown a reluctance to get involved with a federally subsidized housing authority in developing low-income housing. The third was resolved after the completion of the building. The reputation of the Corporation spread throughout the county and the Township of Denville hired the Corporation to be their development consultants.

The Corporation is comprised of six Trustees who live in the community. There are two Madison Housing Authority Commissioners, two low-income public housing residents and two private citizens. (Photo) The composition of the Board meets all standards of a Community Housing Development Organization (CHDO) as defined in the HUD HOME Investment Partnership Program regulations. The Corporation was the only CHDO in Morris County funded in 1992, 1993, 1994 and 1995.

The building was occupied by 12 low income elderly residents on June 1, 1995. The rents for all of the residents is based on 30% of their adjusted gross income. All of the residents have incomes that do not exceed 50% of the county median.

The Madison Affordable Housing Corporation, which is a non-profit 501 (c) (3) corporation took the lead as the developer of the project. As soon as it was formed it began soliciting grants and loans for the new building. Through a series of meetings a partnership was formed between the Corporation, the Madison Housing Authority, the Housing Partnership of Morris County, the Municipal Council of the Borough of Madison, the Morris County Community Development Office which administers the Community Development Block Grant Program and the HOME Investment Partnership Program, the Federal Home Loan Bank and Crestmont Federal Savings Bank.

This partnership encouraged the private banking institutions to assist with the funding of the development. Funds for the development came from both the public and private sectors as follows:

The development of these units met a State-wide objective. The State of New Jersey passed the Fair Housing Act in 1986. This Act established mandatory quotas for each municipality. This "Fair Share" quota, established specific numbers of affordable housing units which must be provided. They could be provided through new construction, rehabilitation or zoning. The development of these twelve units of low income senior citizen housing were credited toward the municipality’s quota. Upon completion of these units the Borough of Madison had completed 93% of its quota. In addition, it reduced the existing waiting list and met a community-wide objective too.

Since the completion of the 44 Cook Avenue building by the Madison Affordable Housing Corporation, several municipalities in the area have contacted us to assist them in developing their "Fair Share Housing". The Corporation has had several meetings with Harding Township to discuss developing 27 townhouse units for low income families. In addition, the Corporation has signed a contract with the Township of Denville to develop a 70 unit senior citizen housing complex.  The Corporation has received approval of 4% Low Income Housing Tax credits and substantial donations from the Morris County Community development Office as well as the Township itself.  The development is anticipated to begin construction in the Fall of 1998.

The Housing Authority and the Madison Affordable Housing Corporation have become a proactive entity traveling throughout the region describing how affordable housing can be painless and inherently beneficial.

For the Housing Authority Home Page click here.

To contact the Housing Authority click here.