Initiated through the US Department of Housing and Urban Development's HOPE VI program, the West Kinney project is the first phase of a larger revitalization in the Central Ward area, according to city officials. HOPE VI is a community redevelopment program that uses federal financing to leverage private investment to improve public housing.

In this case, a total of $14 million is coming from the HOPE IV program and the Newark Housing Authority. The State of New Jersey is kicking in another $3 million through its Housing and Mortgage Finance Agency, and $1.1 million in loans from the Department of Community Affairs. The bulk of the money, some $30.2 million, is coming in the form of equity financing provided by Related Capital Co., a subsidiary of Charter Mac. That money is being provided in equity for tax credits generated by the West Kinney Gardens transaction.

"West Kinney Gardens is an excellent example of private investment helping to revitalize an urban community," says Justin Ginsberg, executive vice president of Related Capital. "At the same time, it offers vastly improved affordable housing."

"It will preserve the architectural heritage of Newark," adds Israel Roizman, president and CEO of Roizman Development. His Norristown, PA-based company has built more than 3,300 rental units in a total of 18 projects in seven states and Washington, DC.

Some 76 of the townhouses within the project, which is located 1.5 miles from Downtown, will be designated for public housing residents subsidized under a contract between the Newark Housing Authority and HUD. The rest of the units will be restricted to people earning 60% or less of the area's median income, and 21 mid-rise units will be targeted primarily toward elderly residents.