County approves $400,000 loan to Gateway Lofts to close financing gap for 31 affordable units

Essex County commissioners voted to approve a $400,000 housing loan to Gateway Lofts, a 58-unit conversion in Newark that will reserve 31 units as affordable, during their Nov. 20 meeting.

Andre Narvaez, housing coordinator for Essex County, said the $400,000 comes from previously approved program-year 2022–23 funds and is intended for new construction and affordability preservation. Maria Iglesias, co‑owner of developer M and M Development, described the project as a block‑from‑downtown conversion called Gateway Lofts and said, "The building is 58 units, and 31 of those units are gonna be affordable," with affordability tiers ranging from very low income (30% of area median) to moderate (60% of median). She said the project has been allocated $10,000,000 in low-income housing tax credits by the New Jersey HMFA and that the $400,000 fills a final funding gap.

Commissioners asked for details on unit mix (Iglesias said about 60% two-bedroom and 40% one-bedroom) and whether funds require repayment. Narvaez explained the county’s program treats loans to for-profit developers as repayable with interest and a term that will be set; HUD policy guides allowable interest (transcript reference: HUD allows 1–5% interest). Narvaez said HUD had not yet released the federal funds because of timing, but the county’s commitment from program-year allocations allows the project to move forward once HUD opens the award.

On roll call the board approved the resolution to grant the $400,000 loan; commissioners and staff praised the project’s higher share of affordable units and the developer’s prior county projects. The county will execute loan documents consistent with program rules and follow up on HUD disbursement timing.