I'm not sure of the costs because I don't know what factors went into development. Did they demolish properties to build new units. How many units are in a property? What role to chromium play? When did they start building?

The truth of the matter is that construction costs don't vary greatly across the city (land acquisition does!). People choose not to develop in Greenville because the market isn't there, and not because it's cheaper than developing downtown.

If the funding is there, it's great to see this type of investment in our hard-off communities. This sort of investment expands the tax base and raise property value of surrounding homes.

Quote:

$400k per house? The cookie cutter two family homes that seem to have popped up everywhere wouldn't cost near that to build with private money. So I have a couple questions:

Does that $$ include the price of the land?

Since tax payer money was used, can I assume that the Prevailing Wage law was in effect? This can increase labor costs by as much as 400%. A Class C laborer (they guy swinging a broom and dustpan) is paid over $90k per year in salary and benefits.


You can see a full list of the wage rates for Hudson County here:

http://lwd.dol.state.nj.us/labor/forms_pdfs/lsse/hudson.pdf

Quote:

two million dollars to build 5 townhouses in Greenville? could somebody do THAT math?

The townhouses are each priced at $220,000
So,
5*$220,000 = $1,100,000 i.e. $1.1 million dollars

The project cost $2.1 million to build.
So,
$1.1 - 2.1 = -$1.0 million loss

Funding:
$1.1 million came from a construction loan from TD Bank
$1.0 million grant from Jersey City
----------
$2.1 million total capital

This has nothing to do with race.

It really does take a certain kind of person to successfully manage rental property long-term. White, black, Spanish, Asian, whoever - needs to have strict accounting and budgetary skills, general know-how, people skills, and sales skills.

People who possess these skills shouldn't need a hand-out to buy their very first investment property.

This makes as much sense as have special programs to help vision-impaired people achieve their dream of being a pilot.

nice. only took one post to get all quasi-racist. stay classy jclist!

Who comes up with these terrible schemes?

Speaking as both a homeowner and a landlord:

Owning a maintaining a home is difficult and a huge responsibility.

Being a landlord is a much, much bigger responsibility and requires one to be a shrewd accountant, negotiator, judge of character, lawyer, manager, and salesperson.

Attempting to be a homeowner and/or a landlord in the ghetto doubles (at least) all of the headaches and risks you face.

What percentage of first-time buyers who have thus far amassed limited funds will be capable of successfully managing these properties long term?

Didn't we learn anything from granting loans to subprime borrowers - they were unable to maintain HOMES - let alone multifamily investment properties. Let alone multifamily investment properties beset by crackheads and rapists.

Jersey City's Greenville neighborhood gets five new two-family houses that allow first-time homebuyers to gain income from rental units

Published: Thursday, November 03, 2011, 3:00 AM
By Charles Hack/The Jersey Journal

CHARLES HACK JOURNAL PHOTOSergio Benitez, left, his wife Shadira Benitez, mother Amira Sanchez, right, and their 1-year-old niece Ely Rosales in front of their new house on Van Nostrand Avenue in Jersey City.

Five new townhouses in Jersey City?s Greenville neighborhood will give five first-time buyers not just a chance to enjoy the ?American Dream? but to become landlords to boot.

The families, city officials, and staff members of the Jersey City Episcopal Community Development Corp. joined together yesterday to cut the ribbon on the five new two-family buildings at 34, 36 and 40 Van Nostrand Ave. and 15 and 17 Oak St.

The three-story townhouses are each priced at $220,000.

Known as the Van Brunt Homes, each townhome includes a three-bedroom duplex on the bottom two floors, a garage and backyard, and a three-bedroom rental unit on the top floor.

Sergio Benitez, 38, his wife Shadira, 35, and their three children are moving into one of the Van Nostrand Avenue homes. The closing is scheduled for next week.

?We are going to live the American Dream,? said Benitez, a technician for a hospital supply company and a current renter in the Jersey City Heights.

To qualify, applicants to buy the homes had to show they earn between $40,000 and $60,000 a year, officials said. All the buildings have been sold or are under contract.

Tenants who pay $900 per month for the three-bedroom top-floor apartments also have to apply for a home through the development corporation.

The buildings are named for the founder of the Jersey City Episcopal Community Development Corp., Peter R. Van Brunt, 72, who attended yesterday?s event.

?I look forward to assisting this development corporation for as long as I am able,? he said.

The project cost $2.1 million to build. Some $1.1 million came from a construction loan from TD Bank and the City of Jersey City gave the project a $1 million grant, officials said.

The Jersey City Redevelopment Authority sold the land to the development corporation for $120,000.