Jersey City breaks ground on Canal Crossing: 508 homes, 102 affordable, under twin 30-year PILOTs

JERSEY CITY — Mayor James Solomon joined state and county officials, housing advocates, labor leaders and community representatives Wednesday, Oct. 21, 2026, to break ground on Canal Crossing, the Bergen-Lafayette redevelopment the city is pitching as a jump-start for affordable housing. The first phase will deliver 508 homes, including 102 affordable homes with units renting below $1,000 and $1,500 a month, according to the city’s release.

Those 508 homes come with two 30-year tax exemptions. The Municipal Council gave final approval Sept. 23 to Ordinances 26-045 and 26-046, and the mayor approved both Sept. 24. Under the financial agreements Hudson TV reviewed last month, for the first 15 years each building pays the city the greater of a minimum charge or 10% of its annual gross revenue instead of conventional property taxes.

Rendering of Canal Crossing’s first phase. Image: City of Jersey City.

What the city says it is getting

The release says one in five homes in the initial phase will be affordable, that the development will include family-sized housing with three-bedroom units, and that the project is expected to use union labor.

“Every Jersey City resident deserves the opportunity to find a home they can afford and build a future in the city they love,” said Mayor James Solomon. “Canal Crossing is an important step toward making housing more affordable for working families. Through developments like Canal Crossing, we are moving forward with housing that serves our residents, strengthens our neighborhoods and keeps Jersey City accessible to the people who call it home.”

The city says the project advances the mayor’s Building for Working Families initiative.

“I’ve said it time and again: development in Ward F has to benefit the people of Ward F,” said Councilman Frank “Educational” Gilmore. “Canal Crossing checks all the boxes—cleaning up a brownfield, creating good union jobs, delivering much-needed affordable housing, and providing larger homes for growing families. But most importantly, it’s about making sure the people who helped build this community have an opportunity to remain here and share in its future. That’s what responsible development and real progress should look like.”

The council’s roll calls show Gilmore voted yes on the Phase 1A exemption, Ord. 26-045, which passed 9–0 on Sept. 23. He and Council President Denise Ridley abstained on the Phase 1B exemption, Ord. 26-046, which passed 7–0–2.

“It’s important that any development in Greenville reflects and serves the needs of the people who live here,” said Sandra Lovely of the Greater Neighborhood Association. “I’m looking forward to seeing Canal Crossing become part of the neighborhood and the community we continue to build together.”

“Canal Crossings is a brownfield-cleaning, job-creating, home-building project that only happens when government operates at its best,” said Mike Hellstrom, Vice President, Laborers’ International Union of North America. “LIUNA is proud of its long-time support of Canal Crossing and looks forward to providing the skilled, safe and productive workforce to help build this important housing project–a project that supports families and strengthens communities.”

“For families across New Jersey, finding an affordable home determines whether they can stay near their jobs, keep their children in the same schools and remain close to the people they love,” said Jacquelyn Suarez, Commissioner, New Jersey Department of Community Affairs. “By creating more opportunities for families at different income levels, we can help build more stable communities across the state.”

What the tax deals say

The release’s 508-home and 102-affordable figures match the two financial agreements attached to the ordinances:

• Phase 1A (Ord. 26-045): Garfield Phase 1A Urban Renewal LLC, 850–870 Garfield Avenue. A six-story building with 215 rental units, including 43 affordable units at or below 50% of area median income. Total project cost estimated in excess of $141 million; about 275 construction jobs and 30 permanent jobs.
• Phase 1B (Ord. 26-046): Garfield Phase 1B Urban Renewal LLC, 874–902 Garfield Avenue. A ten-story building with 293 rental units, including 59 affordable units at or below 50% of area median income. Total project cost estimated in excess of $176 million; about 350 construction jobs and 50 permanent jobs.

Both agreements use the same payment schedule, called the Annual Service Charge, which runs for 30 years from its start date:

The minimum charge is defined as the taxes levied on each parcel in its last full year of conventional taxation; the agreements give a formula, not a dollar amount. The city sends 5% of what it collects to Hudson County, and the developer pays the city an administrative fee of 2% of each year’s charge. Once payments begin, the land is also exempt from regular land taxes.

The council vote followed a heated public hearing, where residents spoke both against and for the deals. Hudson TV covered that Sept. 23 meeting.

In January, Mayor Solomon ordered an audit of more than 100 active long-term tax abatements, with a July 1, 2026 completion target, according to a city release.

Want to know if you’re overpaying on property taxes in Jersey City? Check your address at gardenstate.ai/property-tax

Hudson TV asks: Canal Crossing gets 30-year tax deals in exchange for 102 affordable homes. Should the city publish what each building actually pays every year once the payments start, or are the affordable homes the return that matters? Share your take in the comments.

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