Council expands Affordable Housing Trust Fund uses for homeownership; debate continues over inclusionary zoning and 430 Market project

The Newark City Council voted to expand how the city’s Affordable Housing Trust Fund may be used, adding affordable homeownership to the list of eligible expenses, and heard a separate public hearing and questioning about a 225‑unit mixed‑use project at 430 Market Street.

The trust‑fund amendment amends Title 10 of the city code to permit trust funds to support affordable homeownership construction as well as rental development. Deputy Mayor and Director of Economic and Housing Development Lisonbee Ladd told the council the change is intended to boost homeownership for Newark residents and allow the city to provide construction or “gap” funding to build affordable for‑sale units. She also said the city already runs down‑payment assistance programs and “we are able to provide $20,000 to people who wanna buy a house in the city who are first time homebuyers.” The council approved the amendment on the council floor.

Why it matters: Affordable homeownership programs aim to convert federal, state and local resources into permanent ownership opportunities. Expanding allowable uses of the City’s Affordable Housing Trust Fund shifts the city’s toolbox toward helping residents buy homes in place of or in addition to rental subsidies.

At the same meeting, developers and residents debated a proposed 13‑story mixed‑use building at 430 Market Street that would contain 225 rental units, of which project materials show 196 are market‑rate. The project sits one block from Penn Station; city staff said the site received site‑plan approval under the older inclusionary zoning rules and therefore falls under the prior ordinance rather than the city’s newer IZO requirements.

Deputy Mayor Ladd said the developer agreed to provide on‑site affordable units rather than pay a full payment‑in‑lieu (PILOT). She told councilors the city will receive a payment in lieu “about a half a million dollars” to offset the discrepancy between the number of affordable units on site and the current inclusionary requirement. Ladd said the project’s original site plan was approved about four years ago; because the city’s amended inclusionary zoning ordinance uses the site‑plan application date as the benchmark, the project remains subject to the older standard.

Residents and advocates asked the council to press for more on‑site affordable units and questioned how “affordable” would be defined. Public commenters said the project’s affordable percentage appeared to be below 20 percent and asked whether proposed rents would be affordable to Newark residents at local incomes. City officials said the project will include deed restrictions and certificates of completion to ensure long‑term affordability for any units built under the program.

Deputy Mayor Ladd also described how the city would use the Affordable Housing Trust Fund if the council approved the amendment: funds would be available to nonprofit or private develop ers to build ownership units with deed restrictions similar to those used for rental projects; developers would be required to submit documentation to release deed restrictions later if necessary.

What’s next: The trust‑fund amendment passed on the council floor and will be incorporated into city practice. Council members signaled they will continue to scrutinize projects that rely on older approvals, and several asked administration staff to provide more detail on specific projects’ affordable unit counts, AMI targets and parking plans before final votes on abatement or PILOT requests.

Sources and quotes: Deputy Mayor Lisonbee Ladd (Economic and Housing Development); public commenters including Felicia Austin Singleton and Miss Freeman (community activists); developer and site‑plan history as described in the city presentation.