May 2015 Edition

MEND making housing/economic investments locally

Moorestown Ecumenical Neighborhood Development, Inc. (MEND) in partnership with the Housing and Community Development Network of New Jersey (HCDNNJ) has recently announced the release of an important new study on the significant economic impact that community development corporations (CDCs) have had in New Jersey over the last 25 years.

MEND is a church-based, nonprofit affordable housing developer that has been active in the Burlington County region since 1969. HCDNNJ is a 25 year-old, Trentonbased, statewide association of more than 250 community development corporations, individuals and other organizations that support the creation of affordable homes, economic opportunities and strong communities.

The economic impact study, Stronger Together, found that nonprofit community developers have made a $12 billion dollar impact on New Jersey’s economy through the creation of construction and permanent jobs, tax revenue, affordable homes, small business development, and neighborhood revitalization. The study itself can be found in its entirety at http://www.Hcdnnj.org/StrongerTogether.

The research and analysis was conducted by Econsult Solutions, a Philadelphia firm that provides businesses and public policy makers with economic consulting services in urban economics, real estate economics, transportation, public infrastructure, development, public policy and finance, community and neighborhood development, and planning. The study was commissioned by HCDNNJ and was financially supported by PNC Bank, the Fund for New Jersey, and the Henry and Marilyn Taub Foundation.

Matthew Reilly, President/ CEO of MEND and Board Member/Treasurer of HCDNNJ said that the study makes it abundantly clear that the good deeds done by nonprofit housing developers like MEND produce numerous economic benefits throughout the state. Since 1969 MEND has developed 718 units of affordable rental housing at 29 separate locations in 8 municipalities in the Burlington County region of southern NJ. In addition to providing much needed housing and helping municipalities meet their courtmandated affordable housing obligations, MEND’s now 46 year-old development activities have created both construction and permanent jobs.

For instance, MEND’s most recent housing developments in Burlington Township, Florence Township and Egg Harbor City, built at a total cost of $51,500,000, have created a total of 227 new apartments for the elderly and those with special needs. And with respect to the economic impact of these projects, the NJ Housing and Mortgage Finance Agency has estimated that the 3 new developments created 495 fulltime construction jobs and 51 full-time permanent jobs.

According to the Stronger Together study, since 1989, NJ CDCs have created 82,000 jobs, provided job training for more than 10,500 local residents, employed 10,000 permanent staff members, and contributed $5.5 billion in worker wages and in contracts with NJ businesses. CDCs have also built over 2.5 million square feet of commercial space for new and expanding small businesses. Even though nonprofit CDCs are exempt from some taxes, the study found that CDC development activities have generated $320 million in state tax revenue.

New Jersey has over 250 community development corporations that help make our municipalities and neighborhoods better and grow our state and local economy, said Staci Berger, President/ CEO of HCDNNJ. Aside from the $12 billion dollar impact on the state’s economy, CDCs have also made an impact directly on lives of thousands of residents through the construction and rehabilitation of 21,000 affordable homes. The CDCs are creating jobs, providing essential services, building homes and generating revenue for the state and local governments. Most importantly, the CDCs are creating employment and housing opportunities for thousands of state residents.

Mr. Reilly noted that the March 2015 NJ Supreme Court decision on municipal affordable housing obligations is expected to jump-start the planning and production of affordable housing throughout the state. And once again the nonprofit CDC sector will step-up and do its part to help Towns meet those to-be-courtmandated obligations. “And the good news”, said Mr. Reilly, is that while nonprofit organizations like MEND are creating this affordable housing for our brothers and sisters who need it, we will also be making a significant contribution to our state and regional economies. Sounds like a home run to me”.