In December of 2021, the Leviticus Fund joined with three other nonprofit lenders to create an $11 million revolving construction loan to support development of a new 148-unit mixed-income, for-sale condominium project in Barnegat, New Jersey, called Coastal Woods. The project is being developed by the nonprofit, Homes Now, Inc. and blends affordable and middle-income for-sale homes that will be age restricted.
Established in 1997, Homes Now provides quality affordable housing for a variety of underserved populations, including income-restricted families, veterans, individuals with special needs, seniors, and women and children who are survivors of domestic violence. The organization has developed more than 600 affordable housing units in New Jersey.
Of the 148 units available for purchase at Coastal Woods, 29 units—or 20% of the total—will be affordable. As a result, 15 units will be reserved for buyers earning at or below 50% of the area median income (AMI) and 14 units for buyers at or below 60% AMI. The remaining 119 units will be owner-occupied units targeting middle-income buyers. All 148 units will be available only to age 55+ buyers. The for-sale homes will be a mix of one- and two-bedroom units, and the affordable homes will be scattered throughout the proposed four, three-story residential buildings.
The revolving credit facility is a highly flexible type of financing that allows the borrower to withdraw funds, repay them, and withdraw them again, as needed. Homes Now plans to fund the more than $29 million development for Coastal Woods by combining financing from the revolving credit facility, projected at $25 million over two years, with its own equity capital.
New Jersey Community Capital is the lead lender for this loan, and Leviticus is joined by Partners for the Common Good and Capital Impact Partners. We are pleased to join in supporting this worthwhile project in New Jersey, which is another example of our commitment to expanding access to safe, quality housing that is affordable for a range of income levels.
