Residents urge council to delay 30-year tax abatement as New Community tenants describe unsafe conditions

A proposal to grant a 30-year tax abatement to New Community Homes Development LP for a 120-unit affordable housing project drew sustained public criticism Nov. 6 as residents and advocates described persistent maintenance problems at existing New Community properties and asked the Municipal Council to require stronger guarantees before approving long-term tax relief.

Residents said they had repeatedly reported problems — mold, rodent infestations, nonworking elevators and security shortfalls — at several New Community buildings and that the developer had been slow to fix them. "You are not collecting revenues, and you're not being responsible to the people," Lisa Parker said during the public hearing, accusing officials of giving away "tax abatement like jelly beans." Deborah Salters said she believed the same developer responsible for other troubled properties should not receive additional abatements while problems remain unaddressed.

The project under consideration, presented by the administration as a new development, would create 120 units and is financed in part through the New Jersey HMFA, Deputy Mayor Allison Ladd said. Ladd also told the council that the proposal includes 120 Section 8 vouchers so residents in voucher-holder units would pay 30% of their income toward rent by federal law. "All tax abatements actually are payment in lieu of taxes, and the taxes increase for every project that's developed," Ladd said, adding that negotiations for a community benefits agreement are under way but not finalized.

Community advocates said the depth of affordability proposed is insufficient. Leticia Davis objected to the 30-year term as too long and said only 16 of the 120 units would serve households at 30% of area median income (AMI). "A 30 tax abatement represents a severe and prolonged loss of municipal revenue for the residents of Newark," Davis said, calling on the council to shorten the abatement and require stronger local hiring and minority business participation.

New Community representatives, including Richard Camaruri, community engagement lead, and Simone Gagnon, president and CEO, responded at the hearing. Camaruri acknowledged an elevator outage at one building and said the corporation had a plan to repair and replace elevators and to relocate residents temporarily if needed. "We have offered to relocate any person in that building when they need it because of the elevator being down," he said. Gagnon said New Community is "committed to quality housing" and urged residents to speak with staff after the hearing.

Councilwoman Scott Rountree said a community meeting between residents, council members and New Community would be scheduled before the holidays to provide direct follow-up and to ensure code and service requests are addressed.

The deputy mayor and New Community said the project would add tax base and include wraparound services and bilingual capacity; critics said the city should withhold long-term tax incentives until a binding community benefit agreement, local hiring commitments and annual compliance reporting are in place. The council took public comment and discussed next steps; the hearing record and any formal vote will appear on a later agenda item.