MONROE— With nearly $10 million in affordable housing trust funds in danger of state seizure, the Township Council finalized a series of measures to commit the funds in advance of the July deadline.
The state is threatening to seize all municipalities’ trust fund monies and determine how they will be used. According to the N.J. Department of Community Affairs website, Monroe’s $9.7 million is subject to forfeiture if not committed by July. Statewide, only Marlboro, in Monmouth County, has more uncommitted affordable-housing funds.
On May 30, the council unanimously adopted an ordinance establishing an irrevocable trust in an effort to safeguard the township’s affordable housing funds.
Township Attorney Joel Shain told the council and residents that by establishing the fund, the township is creating an additional method of committing the funds.
“The issue revolves around the word ‘commit’ in the Legislature. Our rationale is once these monies are put into this irrevocable trust, those monies are committed for affordable housing within the environs of Monroe Township,” he said.
Shain said he has not heard any response yet from the state, but township officials admitted when the ordinance was introduced May 7 that they expect legal challenges from the state.
Business Administrator Wayne Hamilton said legal counsel for the League of Municipalities reviewed and concurred with Shain’s legal opinion regarding the trust.
Hamilton also said the council’s case is bolstered by a number of difficulties the township has experienced working with the state’s Council on Affordable Housing (COAH), including a Regional Contribution Agreement (RCA) Monroe had reached with PerthAmboy being voided.
Under the agreement, $7 million would have been committed, but the state refused to approve it despite the fact new legislation prohibiting RCAs had not been adopted yet, he said.
“If that wasn’t enough, then they proceeded with the third-round obligations. We submitted our revised plan, a couple of developers objected, we went into mediation, and then COAH goes away and doesn’t exist anymore [before an appellate court reversed Gov. Christie’s move to abolish it], so I think we’ve been put into a Catch-22,” Hamilton added.
By adopting the trust, the council approved a myriad of affordable housing projects, which were based on the Monroe Township Affordable Housing Board’s recommendations to the Township Council.
The projects include committing $6.7 million to build a municipally sponsored affordable housing complex for low- and moderate-income military veterans. The veterans complex would be built on a 25- acre parcel donated by K. Hovnanian at Monroe LLC between Prospect Plains and Applegarth roads. The developer agreed to donate the land when it converted a senior housing project into mixed-age housing last year, said Gerald W. Tamburro, council president and chairman of the township affordable housing board.
Another $5.7 million would be spent on affordability assistance within the township. The township also committed $600,000 for current and future special-needs housing projects.
The final component is $1.5 million for rehabilitating existing affordable housing units within the township.
Overall, the municipality expects to incur $1.9 million in administrative expenses as a result of the various projects.
Later in the meeting, the council unanimously approved a resolution in support of an Assembly bill that would extend the state’s deadline.
Tamburro was pessimistic at any legislative attempts at a deadline extension when the council adopted a similar measure at its May 7 meeting.