Break in maintenance fees
appears unlikely resolution
MANALAPAN — The news about maintenance fees does not look good for residents of affordable housing units at the Knob Hill development, Route 33.
Township Attorney Donald M. Lomurro reported back to the Township Committee at a recent meeting about the maintenance fees paid by residents who purchased their homes under income guidelines established by the New Jersey Council On Affordable Housing (COAH).
The COAH units sell for less than market value, but the residents of the COAH units pay the same monthly maintenance fee as Knob Hill residents who purchased their homes at prevailing market prices.
In recent months, residents of the COAH units have sought government help in an attempt to reduce their maintenance fees. The residents of the affordable housing units said their buildings do not have the same amenities as the buildings where the market priced units are located.
Lomurro said there are two options and neither one appears to be acceptable.
The first option would be to try to petition COAH. The aim of the petition would be to amend the Manalapan code to discount, or change, the fees for those people who live in the affordable housing units.
Lomurro said the problem with that solution is when the ordinance was adopted by the Township Committee and approved by COAH, the people who eventually purchased their homes were aware that the same maintenance fee would be applied to everyone, regardless of whether they purchased a COAH unit or a market priced unit. The attorney said it would be legally difficult to sustain a change in the ordinance. He said it would be like changing a contract after the fact.
"The proposal to change the township ordinance will not pass muster," he said.
The second option was to use the affor-dable housing trust fund money to subsi-dize the COAH unit residents’ monthly maintenance fee payment. The trust fund includes money paid by developers to the township to help the community meet its state mandated obligation to provide affordable housing.
"COAH is against that at this time," Lomurro said. "Further, COAH takes the position that the trust fund money is to be used for the initial payment (such as a loan) for those that qualify" to purchase a COAH unit.
He also noted that COAH takes the position that it was not appropriate for the trust fund to be used as a continual subsidy.
Lomurro said he asked the attorney who represents Knob Hill for a breakdown of the money as to how it was being spent; how much of the maintenance fees are being used for common areas — snow removal; cutting lawns; maintenance of the facilities; and how much is really the differential being used for the particular property owners.
"The people here have to know if they are being treated unfairly or was it more of a perception than reality," said Lomurro. "That explanation, we have not gotten. At the present time, this committee would not be able to solve the problem."
— Dave Benjamin