Council considers affordable housing proposal

   MONROE —A look at the township’s plan to meet its affordable housing requirements.

By: Leon Tovey
   MONROE — Building two apartment buildings for seniors and the disabled are part of a township plan to meet its third-round affordable housing obligation.
   The plan, recommended by the Planning Board, also includes rehabilitating existing township houses and paying for the construction of affordable housing in New Brunswick and Perth Amboy.
   The board voted unanimously Wednesday to recommend the plan to the Township Council, which will consider it at Monday’s 7:30 p.m. meeting in the Municipal Building.
   The plan was prepared by Heyer, Gruel and Associates, the township’s planning firm, in order to address the township’s obligation under new rules adopted by the Council on Affordable Housing in 2004.
   The rules cover a 10-year period, from 2005 to 2014. They base a municipality’s affordable housing requirement on commercial and residential growth, requiring one affordable unit to be built for every eight market-value units and one affordable unit for every 25 new jobs created in a municipality. The township’s projected obligation for the third round is 650 units affordable to those with incomes in the low to moderate range as defined by COAH. For a family of four living in Middlesex County in 2005, that range is $46,000 to $73,600 per year. A full list of income ranges can be found online at www.state.nj.us/dca/coah.
   Under the new plan:
   • Monroe would construct 163 affordable rental units for senior citizens.
   • Monroe would build 102 affordable rental units for disabled adults. Because the township’s obligation for group or independent living rental units under the new COAH rules is only 82 and COAH grants a two-unit credit for every unit over the obligatory number, this would result in a credit of 122 units for the township.
   • Monroe would rehabilitate 40 existing homes in the township. Under the two previous rounds of COAH obligations, the township’s Affordable Housing Board funded 56 rehabilitation projects in the township. The difference under the third round would be the extent of rehabilitation; instead of just bringing a house up to code, third-round rehabilitations would have to replace all major systems or make repairs in excess of 50 percent of a house’s value.
   • Monroe would conduct regional contribution agreements for 325 units, the maximum allowed under COAH regulations. During the second round of COAH obligations, the township contributed $2 million for construction of 115 new units of affordable housing in New Brunswick. In the third round, the township would pay for construction of 200 units in Perth Amboy and 125 in New Brunswick, for a total cost of $11.35 million. Mayor Richard Pucci said he had spoken with the mayors of both cities and that they welcome the agreements.
   In presenting the plan to the Planning Board, Mayor Pucci said that much of the plan is tentative, based on projected residential and commercial growth in the township during the third-round period.
   The plan can be amended once it has been approved by COAH, he said, but it must be approved by the Township Council and submitted to COAH officials by Dec. 20.
   The mayor also told board members that the plan could be executed at no additional cost to township taxpayers.
   "We expect our affordable housing fund to generate $1.5 million to $2 million per year over the period in question," Mayor Pucci said. "That will be more than enough to cover the costs associated with this plan."
   The township charges developers an affordable housing fee of 1 percent of the assessed valuation of each residential unit they build and 2 percent of the assessed valuation of each commercial or industrial unit they build. Developers in 2004 paid $1.524 million in affordable housing fees to the township.
   "And if we don’t get that money because we don’t have that projected growth, it’s all right, because our obligation is based on that projected growth as well," Mayor Pucci said.
   Other questions remaining about the plan include the exact nature and location of the rental units the township would build. The mayor said the township would likely build the rental units in conjunction with a nonprofit organization, but didn’t offer specifics.
   He also said the township could decide to build the two buildings in a single complex or in separate complexes. Either option would require 5 to 10 acres of land located close to public transportation and shopping facilities (a COAH requirement).
   Another question is whether the township could find 40 homeowners willing to participate in the rehabilitation plan, Mayor Pucci said. The township’s current rehabilitation program requires homeowners who participate to continue living in the house for 10 years or pay back the cost of repairs from the proceeds of the sale. Under the new plan, that period would be extended to 30 years.