Creating a “gateway” to University Hospital, construction is set to begin in the coming weeks on an affordable housing development in Newark‘s Fairmount neighborhood with an eye toward improving resident health outcomes.

On March 4, L+M Development Partners, Type A Projects and MSquared said they closed on $42 million in financing for the project, which will bring 78 affordable rental units serving low- and moderate-income households to the neighborhood, in partnership with University Hospital.

The project was announced in May of 2021.

“This financing is a tremendous step forward for a project that will have a lasting impact on area residents in finding and keeping affordable, supportive housing in the proximity of University Hospital,” said Lt. Gov. Sheila Oliver, who serves as commissioner of the Department of Community Affairs and NJHMFA board chair. “Governor Murphy and I are thrilled to see progress on this innovative hospital and housing partnership project that will help strengthen the Fairmount community.”

The project is being developed under the New Jersey Housing and Mortgage Finance Agency’s Hospital Partnership Subsidy Program.

Designed by Inglese Architecture and Engineering, the development is located on a portion of the property at 250 Georgia King Village on West Market Street. University Hospital will operate a ground-floor clinic and hospital space at the building, according to an announcement, with those wellness features serving to enhance social services across the neighborhood.

“Supportive housing has never been a more critical component in the equation of health care than it is today, and we are pleased to join with our state and local partners to develop this project in the heart of Newark,” Dr. Shereef Elnahal, president and CEO of University Hospital, said in a statement. “This initiative will help us move more deeply into our long-term vision of chipping away at upstream social determinants of health, while creating positive and lasting health outcomes for our neighbors.

“Looking to our future, University Hospital must honor our original charter by focusing on the solutions that will bring dramatic change to our community,” he added.

A combination of public and private capital will finance the project, including $18 million in tax credit equity from Wells Fargo, $22 million in mortgage financing from NJHMFA, $1.6 million from the NJHMFA Special Needs Housing Trust Fund, $6 million from the Hospital Partnership Subsidy Program, and $3.5 million from the Multifamily Rental Housing Production fund. University Hospital is contributing $3 million, in addition to $300,000 in HOME funds from the City of Newark, and $300,000 in HOME funds from Essex County.

“As part of our ongoing commitment to Newark, we are proud to develop another project that will provide two critical resources to the Fairmount neighborhood — quality affordable housing and access to health care,” said L+M Development Partners Managing Director Jonathan Cortell. “A core part of our mission at L+M is to improve the quality of life for our residents and vulnerable communities, and this project exemplifies just how far our impact can go.”

Supported by project-based rental vouchers provided through NJDCA’s Housing Choice Voucher Program, 16 units at the development will be reserved for families and individuals experiencing homelessness. The Newark Housing Authority will also provide 30 project-based rental vouchers.

Under the Hospital Partnership Subsidy Program, NJHMFA matches funding contributions from participating hospitals to provide affordable rental housing, in addition to apartments with access to supportive and wrap-around services for residents with special needs.

“The Hospital Partnership Subsidy Program began with a very simple premise: Housing is health care. Where and how people live affects their well-being,” said NJHMFA Executive Director Melanie Walter. “This innovative program is a vehicle for hospitals to make impactful affordable housing and wellness investments in their communities. The high-quality apartment housing produced through these development partnerships also ensures resident access to critical resources including wraparound services for residents with special needs.”