HILLSBOROUGH: Under the gun, housing plan is amended

By Peter Sclafani, Staff Writer
   Hillsborough’s Township Committee has amended its Affordable Housing Spending Plan rather than risk state government taking control of the $3.6 million in its affordable housing fund.
   The amended plan comes as the state’s July 17 deadline to commit the money to use draws closer.
   ”If we did not proceed with a spending plan, the funds would become added to the state coffers,” Mayor Carl Suraci said.
   There is $3.6 million in the township’s Affordable Housing Trust Fund, and projections show that by 2018 there will be $4.3 million, said Jennifer Beahm, a planner from CME Associates hired by the township.
   The state requires a spending plan, which extends through 2018; the plan may be amended.
Committeeman Frank DelCore emphasized the trust fund doesn’t come from taxpayer dollars, but from development fees collected by the township.
   ”We have worked hard to limit the impact of the mandate. However, a mandate is a mandate. There is no getting around it,” he said.
   Each aspect of the plan is intended to benefit people who earn a low-to-moderate income.
   According to Township Planner Robert Ringelheim, the amended plan allocates the majority of the money in four ways — a rehabilitation program, supportive housing, affordability assistance and administrative costs.
   According to Ms. Beahm, the township will allocate nearly $2 million to rehabilitate a total of 36 substandard housing units to correct health and safety code violations. The township will spend $35,000 per unit for rehabilitation.
   Traditionally, the amount of money given to rehabilitation of housing has been $15,000 per unit, Ms. Beahm said. Due to the improvements that need to be made, Mr. Ringelheim has decided to use more money in this area.
   The committee will also allocate $1.2 million to supportive housing, which will provide group homes for the developmentally disabled. According to Ms. Beahm, three developers of supportive needs housing projects have filed requests for funds to add a total of 19 beds.
   The plan will also include affordability assistance for existing housing units. Help with down payments, low-interest loans and rental assistance will be give to those who earn 30 percent or less of the region’s median income.
   Administrative expenses could take to 20 percent of the total revenues.
   The N.J. Housing and Mortgage Finance Agency will match the half of the money provided by the township for affordable housing, said attorney Andrew Bayer, of GluckWalrath LLP.
   According to Ms. Beahm and Mayor Suraci, in 2008 the state Legislature amended the Fair Housing Act to require municipalities to commit affordable housing money within four years.
   In 2008 the Council on Affordable Housing required Hillsborough to provide 650 affordable housing units. The township has made use of bonus credits and exclusions to limit the impact of the mandate, township officials have said.