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Ocean City Wins Major State Grant for Affordable Housing Project

These two duplexes on Bay Avenue at 33rd Street are part of the affordable housing units built across town.

Ocean City has been awarded more than $2 million in state funding for an affordable housing project that includes attractive duplex-style homes that blend in with the surrounding residential neighborhoods.

The state Department of Community Affairs announced that Ocean City is among 44 private and public affordable housing projects across New Jersey receiving a total of $108 million in grants.

“Each of these Affordable Housing Trust Fund projects has been meticulously designed to suit the needs of New Jerseyans across the state,” Gov. Phil Murphy said in a news release announcing the grants. “We are grateful for the partnership of the Department of Community Affairs, as well as the nonprofits and developers helping us build stronger, fairer communities and putting the American Dream back into reach for generations of working families.”

The Ocean City Community Development Corp., the nonprofit affiliate of the Ocean City Housing Authority, was awarded a $2.45 million DCA grant to help finance the construction of five duplexes that include a total of 10 affordable housing units.

Construction was completed earlier this year on all five duplexes, which are occupied by families with low or moderate incomes. The duplexes are rental housing, not homes up for sale.

The total cost of the project is nearly $4.2 million.  A combination of state funding and money from Ocean City is financing the project. Ocean City’s share is about 40 percent of the cost.

The duplexes will help Ocean City to meet its state-mandated obligation to provide its “fair share” of affordable housing under a court settlement in 2018.

Jacqueline Jones, executive director of the Ocean City Housing Authority, said the distinctly residential duplexes were designed to fit in with the rest of the neighborhoods where they are located.

“The goal is to blend affordable housing into the community,” Jones said Monday.

Two duplexes were built at 3300 Bay Ave. at the former American Legion post property, another two at 240-244 Haven Ave. and the fifth at 224 Simpson Ave. All of the duplexes are close to the bay either in the north end or midsection of town.

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To make the duplex at 224 Simpson Ave. even more appealing, the decision was made to save a towering shade tree on the property that has been a favorite sight for neighboring homeowners.

    A large shade tree in front of the duplex at 224 Simpson Ave. is a local landmark.
 
 

The Ocean City Housing Authority received more than 200 applications from people wanting to live in the five duplexes. A rigorous selection process was conducted by the authority, including credit and criminal and background checks, to pick the families that occupy the 10 units.

Tenants have to comply with a litany of “house rules” nine pages long to live in the duplexes. They are allowed to have pets.

Jones said the Ocean City Community Development Corp.’s housing consultant, Rick Ginnetti, of The Brooke Group, is always looking for additional funding for projects that the agency is building.

Funding for the Ocean City project came from the DCA’s Municipal Settlement Fund, which helps municipalities create smaller-scale projects that fit into the landscapes of their neighborhoods and assists them in fulfilling their court-sanctioned affordable housing settlements, according to the news release.

Without the DCA grant, the entire cost of the project would have been funded by Ocean City, Jones said.

“Ultimately, it reduces the city’s contribution for this project and frees up funds for the city's future affordable housing obligations,” she said.

For its next project, the Ocean City Housing Authority is preparing to build a 60-unit affordable housing complex that will replace the 1960s-era Pecks Beach Village housing development.

At its September board meeting, the authority awarded a $23 million contract to Gary F. Gardner Inc. of Medford, N.J., for the new Pecks Beach Village project.

Although a contractor has been hired for the project, the funding plan still must be formally approved by the New Jersey Housing and Mortgage Finance Agency at its Dec. 12 board meeting.

    An architectural rendering depicts the duplex-style design of the 60-unit Pecks Beach Village housing development.
 
 

Financing for the project will consist of a mix of grants and loans from the New Jersey Housing and Mortgage Finance Agency, funding from Ocean City and tax credits given to private investors.

Once construction begins, it is expected to take about 18 months to finish the project, a timetable that would put completion around late 2026 or early 2027, Jones said.

The new project will provide affordable housing for local families within 15 duplex-style buildings containing an average of four units each. It will be built on the north side of Fourth Street.

The antiquated, existing 40-unit Pecks Beach Village complex on the south side of Fourth Street will be demolished when the new project is completed.