Agreement between towns
will pay for housing fix-ups
FREEHOLD — Homes in the borough that need repair or refurbishing have just been given a gift — one that will keep on giving for years to come.
According to Borough Administrator Joseph Bellina, the borough has recently entered into a regional contribution agreement (RCA) with Freehold Township that provides for Freehold Township to transfer $3.38 million to the borough in annual payments over the next five years.
Bellina said the New Jersey Council On Affordable Housing (COAH) granted Freehold Township substantive certification of the township’s housing element and fair share housing plan. Included in the township’s fair share housing plan is a provision for an RCA with the borough.
An RCA allows a developing community such as Freehold Township to shift some of its requirement to provide housing for people with low and moderate incomes to a community such as Freehold Borough, which has an older housing stock that may be in need of rehabilitation.
The funds used by a community to pay for the RCA typically come from payments that are made by developers into a housing account.
In return for these payments from Freehold Township, the borough will rehabilitate 169 housing units occupied by families who meet regional guidelines for low or moderate incomes, according to Bellina. The RCA was approved by COAH at its Dec. 12, 2001 meeting.
Bellina said the borough has already received its first payment of $680,000 from Freehold Township.
In order to implement the provisions of the RCA, Bellina said the borough has established a housing rehabilitation program that is designed to assist in improving borough housing. The funds provided by the program will be used to fix up homes and to assist owner occupants of one-family to four-family homes and investors of rental property.
Bellina said the assistance program is governed by state regulations and borough policies and that funds are provided to qualified owners of eligible residential properties, which are occupied by people who meet income guidelines. The properties considered for assistance must also require improvement for code compliance.
According to a press release from Bellina, the financial assistance is available for the renovation or replacement of substandard heating, electrical and plumbing systems, some structural repairs or modification, insulation and other improvements.
According to information provided by the borough, the amount of funds will vary depending on the improvements needed at each home.
Owner occupants of properties with one to four housing units may be eligible for a loan of up to $18,000 for the first unit and $15,000 for each additional unit.
Information provided by the borough states that the household income must not exceed certain limits. It also said that if the owner qualifies for assistance, there are no payments required, provided there is program compliance. Bellina explained that the loan is forgiven after 10 years for the owner of a single-family dwelling and 14 years for all multi-family properties.
In a subsequent conversation with Mayor Michael Wilson, the mayor said he thinks this housing rehabilitation program will be a success.
"We were able to rehabilitate over 150 homes before under the RCA program that was in effect in the mid-1990s," Wilson said. "Now we’ll be able to rehabilitate another 169 homes."
Wilson said he thought the RCA was wonderful way to help restore some of the town’s older homes. He said there has been a waiting list for assistance and noted that some people who did not get to participate in the first RCA between the borough and the township will get an opportunity this time.
Bellina said that in the near future borough officials will make information available to homeowners on how to apply for the funding.