FREEHOLD TOWNSHIP — The Township Committee has added its voice to the list of municipal governing bodies that have supported a resolution in favor of pending legislation that would protect Freehold Township’s state Council on Affordable Housing (COAH) credits in the event of a tenant’s foreclosure.
Senate bill S-1622 was introduced in May 2008 by Sen. Ronald H. Rice (DEssex) and is designed to safeguard the affordability controls for affordable housing units in the event of a foreclosure proceeding and the entrance of a judgment of foreclosure against an affordable housing unit.
Affordable housing units are sold or rented at below market rates to people whose income meets regional guidelines established by COAH.
According to a summary of S-1622, “the bill, as amended by the committee, amends foreclosure laws to require notice be given to the municipal clerk and the commissioner of (the Department of) Community Affairs whenever a debtor is given notice that a foreclosure is pending on residential property that is a unit of affordable housing subject to affordability controls.
“The foreclosing lender is also required to furnish the debtor with the address and phone number of the municipal affordable housing manager and the New Jersey Housing and Mortgage Finance Agency.
“The bill removes the ability of a foreclosing lender to use alternative methods of foreclosure not requiring a public sale when the housing unit involved is subject to affordability controls.”
The Township Committee’s resolution notes the high number of foreclosures being seen throughout the nation, including filings against units that are designated as affordable housing under the provisions of COAH.
In light of the resources the township has spent and will continue to spend to meet its state-mandated affordable housing obligation, an injustice would result if affordability controls pertaining to affordable housing under COAH’s jurisdiction were terminated due to foreclosure, the resolution reads.
The state’s legislative information shows S-1622 waiting for a third reading and vote in the Senate.
The bill was referred to committee after initially being introduced and was released from committee on Dec. 8. If approved in the Senate, the bill will move to the Assembly for hearings.
The Township Committee members voted to pass the resolution in support of S-1622.