The city council awarded $505,000 in federal grant money to the New Jersey Community Development Corporation (NJCDC) on Tuesday night to build four units of low-income housing on Wayne Avenue.
The nonprofit will build a three-story building that will have four rental units – 2 one-bedroom and 2 two-bedroom apartments — at 157 Wayne Avenue. Bob Guarasci, president of the New Jersey Community Development Corporation, said he expects to have the building completed by fall 2019.
All four units will be reserved for low-income households for 15 years, according to federal guidelines. Guarasci said his group plans to keep the units for low-income families in perpetuity.
One-bedroom units will be rented for $1,050 per month and two-bedroom for $1,250, according to city records.
Total cost for the project is $750,000.
Councilman William McKoy blocked Guarasci from receiving the federal HOME Investment Partnerships Program funds in June. He wanted Guarasci to assist other smaller nonprofit organizations in the city to develop revenue generating low-income housing projects.
The New Jersey Community Development Corporation has $44 million in assets, according to federal tax documents, making it one of the largest nonprofit groups in the city.
Guarasci agreed to provide assistance to other groups looking to build affordable housing. He said he will provide them the architectural plan for the Wayne Avenue project.
McKoy was satisfied with Guarasci’s plan to help other groups.