Affordable housing may be given in part to two other towns
By: Stephanie Brown
MONROE The Township Council agreed Monday to place a resolution on next week’s agenda to transfer part of its affordable housing obligations to New Brunswick and Perth Amboy.
Monroe would pay the two cities a total of $11.35 million to take on 325 affordable units.
Township officials predict that the cost of the third-round obligation will be paid for by the township’s affordable housing trust fund. The township charges developers an affordable housing fee of 1 percent of the equalized assessed valuation of each residential unit built and 2 percent of the equalized assessed valuation of each commercial or industrial unit built.
The transfer, known as a regional contribution agreement, is allowed under state rules as a way to satisfy affordable housing obligations, Business Administrator Wayne Hamilton said Wednesday.
The township’s projected obligation for the third round two other rounds were satisfied with previous plans 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.
The obligation covers a 10-year period ending in 2013. COAH’s rules 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 plan to satisfy COAH obligations was approved by the council in December 2005.
Under the plan:
Monroe would conduct regional contribution agreements for 200 units in Perth Amboy and 125 units in New Brunswick for a total of 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 Perth Amboy $35,000 per unit for construction of 200 units in Perth Amboy and 125 in New Brunswick, for a total cost of $11.35 million.
Monroe would construct 163 affordable rental units for senior citizens in the township and 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 in excess, which would result in a credit of 122 units for the township.
In addition, 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.
Mr. Hamilton said COAH made several suggestions to the township about its plan. He said one was to pass resolutions authorizing the execution of the RCAs with New Brunswick and Perth Amboy.
The township has until Sept. 15 to resubmit its plans to COAH.
Because the plans are still pending approval, Mr. Hamilton said the township has yet to seek residents to be a part of the rehabilitation, nor has the township determined a location for the new units. He said the township could partner with a faith-based association to develop affordable housing units.
The resolution will be considered during Wednesday’s meeting.