The document summarizes a partnership between the New Jersey Housing and Mortgage Finance Agency (NJHMFA) and hospitals to develop affordable housing. NJHMFA has allocated $12 million for a pilot program to finance developments with set-asides for individuals who frequently use hospital emergency rooms. Initial projects have been started in Paterson, Newark, and Camden. An example development, the Cornerstone at Barnegat, includes 60 affordable units with 10 set aside for the target population. The partnership aims to reduce healthcare costs while expanding affordable housing opportunities.

1. 1
Housing is Healthcare:
Housing Finance
Agency and Hospital
Partnerships
New Jersey Future Redevelopment Forum 2020
Katie Brennan, Chief of Staff

2. About NJHMFA
2
Independent state agency in but not of the New Jersey
Department of Community Affairs
Mission is to finance safe, decent, affordable housing
•Secures funding through the sale of taxable and
tax-exempt bonds
Administers the federal Low Income Housing Tax Credit
program
•Single largest source of equity for affordable rental projects
Unique Agency in New Jersey – Direct Lender
•Balance sheet of nearly $4 Billion
No reliance on the state for budget and operating funds

3. NJHMFA Mission
& Expertise
3
• Provides funding for affordable
homeownership and rental housing
opportunities for NJ residents
• Finances construction & rehabilitation of
rental housing
• Encourages mixed-income & mixed-use
development
• Develops partnerships to foster economic
development
Woodrow Wilson, LongBranch, Pennrose

4. NJHMFA Statewide Investment-
Murphy Administration
4
Alexander Hamilton, PhaseIII, Paterson, Pennrose
 NJHMFA financed 8,179 apartments in 2018-2019.
 NJHMFA made a total multifamily investment in NJ
of more than $1.7 Billion in two years.
 Over the same period, NJHMFA made 3,398 single
family mortgages to first time homebuyers and an
additional 1,692 loans to police officers and
firefighters through the PFRS system.
 Over the past two years, 2,540 DPA loans were
provided totaling $26,334,613 of DPA dollars to first
time homebuyers.
 The statewide economic impact from these
investments averaged $1.91 billion annually,
supporting 10,950 jobs with $755 million in
earnings per year.

5. Hospital
Housing Pilot
5
Develop Multifamily Housing
with Housing First Pilot set-
aside located near hospitals
• Partnership between NJHMFA
and participating hospitals
• Funding contribution from NJHMFA
and hospitals to develop housing
• The development includes a set-
aside of units for frequent users of
hospital emergency room services.
Valley Brook Village I, Bernards Twp., WinnDevelopment
Willows at Symphony Hall, Newark,Ingerman

6. Frequent Users =
Disproportionate Health
Costs
NJ Results of Housing First
Trenton:
In 2014, the Greater Trenton Housing First Program cited a 78%
reduction in ER & inpatient costs for individuals housed through
the program, reducing annual individual costs from $25K to $5K per
year.
Jersey City:
Among the top 5 most expensive clients before move in, this group
saw an overall 65% reduction in public institution costs during the
1st year of housing.

7. Benefits of a
Hospitals/Housing
Partnership
• Partnership offers hospitals an opportunity for neighborhood
investment, housing for hospital staff, and frequent utilizers of hospital
emergency departments.
• Offer housing options on or near hospital campus for a variety of
workers.
• Cost studies from across the country have found that supportive
housing results in tenants’ decreased use of hospitals and emergency
rooms, resulting in significant savings to healthcare institutions.
• Housing with supportive services provides stability and has shown to
improve the lives of tenants
7

8. Affordable Housing Examples
8
BayshoreVillage, Middletown, CIS
Meadow Lark Run,Middle Twp.,Conifer Cornerstoneat Barnegat, TheWaltersGroup
Main at City Center, Pleasantville, RPMDevelopment

9. Jumpstarting the
Hospital Partnership
• NJHMFA’s Board approves $12 million
investment in hospital partnership pilot
• Agency solicits letters of interest from
hospitals statewide
• Agency receives 8 letters of interest from
geographically diverse set of health
systems/hospitals, initially moves forward
with four to five projects in Paterson,
Newark, and Camden
• First projects receive Declaration of Intent
September
2018
December
2018
July 2019

10. Designing the
Capital Stack
NJHMFA Construction and
Permanent Financing – $10.9
million
Private Equity Generated by 4%
LIHTC - $7.6 million
Special Needs Housing Trust
Fund - $1 million
NJHMFA Hospital Partnership
Subsidy Loan - $3 million
Matching Subsidy Contribution
- $3 million
Land donated by
Medical Center
and
10 project-based
Housing First
vouchers from DCA
to ensure continuing
affordability for
special needs units

11. Example – The Cornerstone at
Barnegat
11
TheWalters Group

12. Finance/HFA
benefits
• Two loans:
• Construction & Permanent
• Pass-through loan for the hospital’s “subsidy”
• Hospitals typically have great ratings.
• And More: flexible loans, creation of mixed use, new partners.

13. Sample Project
Financing
13
Sample Project Description
100% Affordable or Mixed-Income
60 units with 10 units set aside for Frequent Users
Sample Capital Stack
Tax Credit Equity
HMFA Tax-Exempt Financing
Special Needs Housing Trust Fund
HMFA Program Subsidy (example)
Hospital Contribution (example)
Deferred Developer Fee
$4,839,009
$1,166,902
$1,000,000
$3,250,000
$3,250,000
$1,275,000
Total Development Costs $14,780,911
Project Development Options:
• 100% Affordable,
• Mixed-Income, and/or
• Mixed-Use

14. Linc at Orange
Station
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15. Linc at Orange Station
15

16. Thinking Beyond One-Off
Developments:
Neighborhood “Healthy Homes”
Initiatives
We want to collaborate with hospitals to create new
affordable development, but we don’t want to leave
existing neighborhoods behind.
To this end, we are currently planning:
• 1) expansion to fund rehabilitation efforts in
neighborhoods surrounding hospital developments
through partnerships with on-the-ground NGOs and
CDCs
• 2) Funding fit-ups of first-floors in new developments
for medical facilities to serve the local community

17. Public Private
Partnership
• Joint recognition of housing as healthcare
• Limited resources, shared benefit
• Hospitals serve as anchor institutions in their communities
• Outcomes and savings= good public policy

18. Moving Forward
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How will we meet the needs of
the future?
Katie Brennan, Chief of Staff
New Jersey Housing and
Mortgage Finance Agency
www.njhousing.gov
(609) 278-7400