Vita Gardens, Stephen Manor to be refurbished
Group has purchased the affordable housing complexes, will invest millions in repairs
Two affordable housing complexes on the west side of the city are set to receive facelifts.
Vita Gardens and Stephen Manor, located on Monmouth Avenue and Atkins Avenue, respectively, were constructed in the early 1970s, according to city manager Terence Reidy. The two developments are privately held apartment complexes with rent subsidies attached. Residents pay rent based on a formula derived from their household income.
The two complexes were recently purchased by Vitus Group, which on its website describes itself as a “developer of smart affordable housing and a catalyst for community revitalization.” The group began as Pacific Housing Advisors in 1993 and seeks to improve the quality of affordable housing units throughout the country.
Vitus Group has secured a grand worth $6.7 million from the New Jersey Housing and Mortgage Finance Agency [HMFA], Reidy said. This money will be put toward improvements to the complexes, including but not limited to boilers, kitchen and bathroom repairs, security systems and landscaping.
For Vitus Group to receive the funds, HMFA is requiring a payment in lieu of tax agreement from the city. This means Vitus Group will be exempt from paying property taxes to the city, county and school systems for the property — but the group will be responsible to pay the city more than they normally would have through taxes, Reidy said.
“They will pay less overall taxes, but more taxes to the city,” Reidy said.
The city council at its June 6 meeting approved four resolutions regarding the improvements — one resolution establishing a need for the funds for each complex, and another enabling the payment-in-lieu-of-taxes plan for each complex.
The people living in Vita Gardens and Stephen Manor will not be relocated, Reidy said.
Now that Vitus Group owns the two developments, they will outsource the day-to-day operations of them to the National Foundation for Affordable Housing Solutions, Inc., a 501(c)3 nonprofit organization.
The rehabilitation plan and the payment-in-lieu-of-taxes agreement benefit the city in multiple ways, Reidy said.
“Both of these complexes are in need of help,” he said. “Rehabilitation to these complexes is a huge benefit to the city, especially to the west side.”
He also cited the residents’ staying in their homes and the additional revenue for the city as benefits coming from the arrangement.
