L+M Development Partners and Prudential Financial announced a $20 million deal to preserve and modernize 268 units of Section 8 housing in Newark’s South Ward.

L+M and the New Jersey Department of Community Affairs said they reached an agreement to extend the Section 8 contract for Zion Towers at 515 Elizabeth Ave. for an additional 11 years, facilitating the necessary refinancing to perform immediate repairs on the severely neglected building and guaranteeing affordability for the next 30 years.

Refinancing for the repairs to Zion Towers is provided by several sources, including loans from the New Jersey Housing and Mortgage Financing Agency (NJHMFA) and Citi Community Capital; the award of 4 percent Low Income Housing Tax Credits from NJHMFA and tax credit equity from Wells Fargo Bank NA; subsidy loans from NJHMFA through the Sandy Special Needs Housing Fund and Money Follows the Person Housing Partnership Program, as well as from Citi Community Capital; and a payment in lieu of taxes (PILOT) agreement with the City of Newark. Zion Towers is also under a NJHMFA regulatory agreement guaranteeing affordability for the next 30 years.

“Keeping housing affordable for Newark residents through preservation, new construction and rent limitations is one of the most important priorities of my administration,” said Newark Mayor Ras J. Baraka. “The rehabilitation of Zion Towers by L+M and Prudential is a significant step toward that goal as is their partnership to preserve and modernize Georgia King Village. L+M and Prudential continue to demonstrate their dedication to equitable growth in Newark.”

The $20 million renovation will provide every apartment with upgrades including new kitchens (cabinets, appliances, lighting and flooring), new bathrooms (fixtures, floors, lighting and vanities), lobby and community room renovations, roof repairs and replacement, facade repair to eliminate leaks, new windows, elevator modernization, and an overhaul of the heating and air conditioning system (new cooling towers, refurbished chillers and a replacement fan coil in each apartment).