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Newark to sell city parcel at deep discount for 100% affordable housing project, council seeks appraisal and buyer details
Summary
City officials discussed an ordinance to sell a long-held city parcel to a developer for a 100% affordable housing project that the administration says will be priced at roughly half assessed value; the council pressed for an updated appraisal and clearer information on project financing, including an $8 million federal allocation dedicated to local affordable housing.
Council members debated an ordinance authorizing the sale and transfer of city-owned property to a private developer who proposes a 100% affordable-housing project with ground-floor condominiums.
Allison Ladd, director of economic and housing development, told the council the city had regained the site after litigation six years ago and did not secure an updated appraisal before this proposed sale. "The reason for the discounted price is because of the affordable housing that will be in the site. It is going to be a 100% affordable, and...there'll also be condominiums that will be built there," Ladd said. She said the project’s total cost is about $24,000,000 and that the city is selling the parcel at about 50% of assessed value to support development.
Councilman Gonzales asked for an appraisal and additional information about the buyer. "I would love to see an appraisal of this property...I would like to know what's the value now and who are the principals of the entity buying the property," he said. Ladd said the late Congressman Payne dedicated $8,000,000 to Newark for affordable housing and that those funds will be applied to this project; she also said the administration will provide more backup materials to the council prior to the next meeting.
Council members pressed for details about how the homeownership units will be managed. Ladd described a framework tying for-sale and rental units to HUD median-income bands for Newark and listed existing city programs that will help potential buyers prepare, including Invest Newark (section 8 homeownership marketing/selection) and Live Newark (down-payment assistance). She said selection and support will include income bands and mortgage-qualification schedules, and that the Office of Affordable Housing will work on inclusionary zoning and buyer readiness over the roughly 18‑month development timeline.
Beyond this parcel, the council reviewed several related housing and redevelopment items. Brandy Daniel, legislative coordinator for economic and housing development, described a separate solicitation that selected Burgeon Street Partners LLC to redevelop a Bergen Street site for a mixed-use project with 51 units (workforce and affordable) and 12,500 square feet of ground-floor commercial space; she agreed to provide appraisal and lot-size information to council members.
Separately, the council considered a resolution to ratify a second amendment extending a tax abatement for a 98-unit affordable complex (Spruce Park Associates) to match a new Housing Assistance Payment (HAP) contract that runs from 04/01/2026 to 03/31/2036. Business administrators and council members asked for details on tax and utility payments and a list of required improvements tied to the extension.
What happens next: Council members requested updated appraisals, the identity and principals of purchaser entities, and clearer budget/back-up materials; several items were scheduled for follow-up or amendment before final council action.
