Haven House at St. John of God in North Cape May. Photo by Jack Fichter

RIO GRANDE — Elderly individuals looking for affordable housing in Cape May County should have more options in the near future.

The U.S. Department of Housing and Urban Development (HUD) Wednesday, Jan. 14 announced over $12 million in funding for a proposed 73-unit, age-restricted hosing project in Rio Grande. The Roman Catholic Diocese of Camden plans to build the facility on a 17-acre tract of land on Route 47 near the intersection of Shunpike Road.

“We are extremely excited and pleased to receive this funding,” said Curtis H. Johnson Jr., executive director of Camden’s Diocesan Housing Services. “We are also pleased to be working with Middle Township as a partner. This is a good project in a good area, where it is strongly needed.”

The diocese operates two similar senior facilities in this county – Victorian Towers in Cape May and Haven House at St. John of God in North Cape May.

Middle Township Mayor F. Nathan Doughty told the Herald that the project is sure to be a great thing for the community.

“They (the diocese) have an excellent track record for running quality facilities,” he said. “This project will also help the township meet its COAH (Coalition on Affordable Housing) requirements.”

Municipalities throughout New Jersey are required by the state Department of Community Affairs to provide affordable housing for low and moderate income households.

In March last year, the township authorized a tax exemption and established a PILOT, or payment in lieu of taxes, agreement for the property. Instead of paying taxes for the property, the diocese would pay an annual service charge for municipal services to the property amounting to 15 percent of the rents received from residents, Committeeman Steve Barry explained last year.

That PILOT agreement helped make the HUD funding possible, township Administrator James Alexis said.

Like Doughty, Alexis and Barry touted the project’s COAH implications.

“This is great news,” Alexis said. “This shows how the township is working to meet its COAH obligations.”

“It’s huge for us,” Barry agreed. He is the member of township committee that deals with planning and COAH obligation issues.

He noted that, as a rental property, the diocesan project would count for more than just the 73 proposed units. COAH encourages rentals and gives municipalities bonus credits for affordable units, he said.

This project would also be a great benefit to elderly residents that can no longer handle the burden of home ownership and the diocesan policy of charging rent based on a percentage of income works well with those on fixed incomes, Barry added.

According to a release, the HUD funding is part of the agency’s Section 202 Capital Advance Program, which expands the supply of affordable housing with supportive services for the elderly. In addition to interest-free capital advances for building projects, the subsidizes the rents of senior citizens so they can limit their housing costs to only pay 30 percent of their incomes.

The diocesan project’s award breakdown was an $11,249,600 capital advance along with $1,143,600 for a three-year rental subsidy. According to Johnson, it was the only 202 project to receive funding this year.

HUD also awarded funding under its Section 811 program, which provides housing for very low-income adults with physical or developmental disability or living with chronic mental illness.

In total, HUD awarded over $17.7 million throughout the state and over $650 million nationwide.

“These grants will help thousands of our nation’s very low-income elderly and persons with disabilities find decent housing that they can afford,” said HUD Secretary Steve Preston. “Neither group should ever have to worry about being able to find a safe place to live.”

Alexis said the project would need to secure approvals from a local land use board and possibly state approvals as well before construction begins.

Johnson said the diocese would now move into the planning and design phase of the project.

“We have to line up additional funding and hire professionals,” he said. Johnson estimated the total project cost to be between $15 million and $18 million.

HUD allows 18 months to begin the process so the diocese hopes to begin construction by late 2010, Johnson said.

Contact Hart at (609) 886-8600 Ext 35 or at: jhart@cmcherald.com