Newark Council Retools $8M Kawaida Towers Grant, Puts Budget Changes on Hold
Municipal Council • NewarkSeptember 15, 2026
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Newark's Municipal Council kept an $8 million commitment to Kawaida Towers intact on Sept. 15, 2026, but rewrote its terms so the Central Ward housing project can pursue additional state funding. In a short special meeting, members also deferred amendments to the 2026 municipal budget and approved a sister city partnership with Nabón, Ecuador. Councilmember Amina Bey announced an ordinance to fine building owners after a senior building's elevators failed overnight.
- $8M Kawaida Towers grant amended 6-0 to align with state tax credits. No new city money is involved.
- Most of the project's 31 apartments are trending toward 50% and 30% of AMI, according to housing staff.
- 2026 budget amendments deferred. Members want every proposed change in hand before they vote.
- Elevator outage strands seniors overnight. Bey promises an ordinance with "significant fines" for building owners.
Kawaida Towers Grant Rewritten, Not Enlarged
The basics: AMI, or area median income, is the benchmark used to set income limits for affordable housing. A unit set at 30% of AMI serves households earning far less than one set at 80%.
Why it matters: The amendment does not add city dollars. It reshapes an existing $8 million grant so the developer can combine it with state tax credits and other financing, which is how affordable housing projects typically get built.
Where things stand: Resolution 7R2A came to the council as an added starter, meaning it was placed on the agenda late. Allison Ladd, Director of Economic and Housing Development, said the administration had tried to put it on the previous week's agenda.
"This is just an amendment to the grant agreement that the Council approved a few months back," said Ladd. She said the development team is seeking additional state funding and that the city "wanted to align the terms of the grant agreement with the terms for tax credits and other funding sources."
Councilmember Anibal Ramos Jr., North Ward, pressed on the dollars. "So there's no additional funding that's being allocated beyond the original $8 million, right?" he asked.
"No, $8 million still remains the same number," Ladd replied.
Income targeting: Councilmember Dupré L. Kelly, West Ward, paused the roll call to ask about income levels for the project's 31 apartments, and he identified the project as Kawaida Towers. Council President Luis A. Quintana asked him to hold his question until the vote was finished. Ladd then said the top income tier is 80% of AMI, still based on the federal AMI figure, and that most units are trending toward 50% and 30% of AMI.
Decisions and stakeholder impacts: The resolution passed (For: 6, Against: 0, Abstain: 1, Absent: 2).
- For: Bey, Crump, Kelly, Ramos, Scott-Rountree and Quintana.
- Abstained: Councilmember Donna Jackson, At-Large, who did not give a reason.
- Absent: Councilmembers Patrick O. Council and Michael J. Silva.
The developer gains grant terms that fit its state financing package. Lower-income Central Ward households stand to benefit if the 50% and 30% AMI targets hold. City taxpayers' exposure stays capped at the original $8 million.
What's next: Ladd described the 50% and 30% income targets as a trend rather than a final commitment. Residents who track the project should watch for the final unit mix once the state funding is settled.
Seniors Stranded as Elevators Fail; Bey Promises Fines
Why it matters: A senior building lost both of its elevators overnight, and the problem was still unresolved the next morning. The planned ordinance would set repair requirements for senior and disability housing and put financial pressure on owners who delay repairs.
Where things stand: This was an announcement, not an agenda item. Councilmember Amina Bey, Central Ward, told the clerk, the Business Administrator and Corporation Counsel that she will introduce an ordinance on elevators in senior buildings and in buildings that house people with disabilities.
"We had a situation last night where senior building, both elevators were down, 20 residents were stranded downstairs, the rest of them were stranded upstairs," said Bey.
She said the elevator company did not come and residents had to be relocated. Her ordinance would require repairs and impose "significant fines that will be assessed to the building owners if the repairs are not made in a timely fashion."
Jackson pledged to co-sponsor the ordinance. "As of this morning, that situation is still not rectified," she said. She noted that several elders in the building need dialysis and that the outage puts strain on emergency responders and medical transport.
Pushing further: Jackson called the problem a recurring one and argued that higher fines alone are not enough. "I think we need to go into even using the state law that has now been imposed where a landlord can get up to 6 months in jail," she said.
Jackson also asked whether the building should be placed on fire watch, because residents on upper floors had been told to shelter in place. "The entire Department of Public Safety is aware and they are on watch," Bey responded. She thanked John James of the Office of Emergency Management (OEM) for being on site.
Decisions and stakeholder impacts: The council took no action. Elderly and disabled tenants would gain enforceable repair timelines under the proposal. Building owners would face new penalties. Public safety and emergency medical services carry the cost of outages in the meantime. Neither member named the building or its owner.
What's next: Bey will introduce the ordinance at a future meeting. No date was given.
Budget Amendments on Hold Until Members See Them
Why it matters: Newark's 2026 municipal budget will stay as introduced on June 3 for now. Members are asking for time to review proposed changes before they are asked to vote.
Where things stand: The council deferred Resolution 7R8AS, which would amend the 2026 budget. Councilmember C. Lawrence Crump, At-Large, asked whether the three resolutions could be voted on together as a block. Quintana and the clerk took them separately because one was a deferral.
Ramos noted that the council was not taking up amendments that day. He asked, through the chair and the clerk, that the administration provide "a list of all the proposed amendments prior to the next meeting when we're expected to vote on this." Quintana directed the clerk to note the request, and the clerk agreed.
Decisions and stakeholder impacts: The deferral passed (For: 7, Against: 0, Absent: 2). The clerk first called Councilmember Louise Scott-Rountree, At-Large, absent. A "yes" followed, and Bey noted that Scott-Rountree was on the phone, so her vote should be confirmed against the official minutes. Council and Silva were recorded absent.
Later in the meeting, an unidentified member asked to be recorded as voting yes on all three resolutions. Council and Silva both answered roll on the adjournment vote.
Ramos's request shifts the burden to the administration to produce the amendment list before the next vote. Residents and advocates who follow particular budget lines should watch for that list.
What's next: The amendments return at a future meeting where a vote is expected. No date was announced.
Minor Items
- Sister city approved: The council approved a sister cities relationship with the Canton of Nabón in Ecuador's Azuay province, 7-0 with 2 absent. Quintana sponsored it and Crump seconded.
- Adjournment: The council voted 9-0 to adjourn into a special conference.
Looking Ahead
Watch for the administration's list of 2026 budget amendments ahead of the council's next vote, and for Bey and Jackson's elevator ordinance to be introduced.