By Frank Mustac, special writer
HOPEWELL TOWNSHIP — Instead of the state having to pay back more than a half-million dollars to the township’s affordable housing trust fund, a state court decided that the township would receive affordable housing credits instead.
A Superior Court judge ruled last week on a lawsuit filed earlier this year by Hopewell Township to recoup $639,633 from the state.
A developer originally placed the money in the township’s trust fund back in 2008 as part of a mandated obligation. The trust fund is used by the township to develop affordable housing in the municipality, however, as stipulated in the New Jersey Economic Stimulus Act of 2009, the township had to refund the entire sum back to the developer.
Hopewell Township Mayor Harvey Lester released a statement on Aug. 28 commenting the court’s decision.
“Finding that the state has ’no funds available to provide reimbursement,’ Mercer County Assignment Judge Mary C. Jacobson ruled that the township met the prerequisites for the ’alternative relief’ of affordable housing credit towards its COAH obligation,” Mayor Lester said.
“The court also determined that ’the issue of [affordable housing] credits will be folded into [the township’s] Affordable Housing Declaratory Judgment’ court case, which is pending before her. The exact number of affordable housing units to be credited to the township will be determined by the judge at a later date.”
The developer in question is Capital Health Systems, which, before the Stimulus Act became law, was required to deposit the $639,633 “non-residential development fee” in the trust fund after building a hospital in the township.
Under the Stimulus Act, the township was entitled to full reimbursement from the state for the $639,633, but despite repeated timely requests, the township never received it, according to a township resolution document.
The law, Hopewell Township Attorney Steven Goodell said, also stipulates that if the state is not able to pay back the money, the township’s affordable housing obligation would be reduced.
“Upon being sworn in as mayor in January, one of my first priorities was to pursue this long-neglected case,” Mayor Lester said in his statement. “It is gratifying that the court agreed with our analysis that the taxpayers of Hopewell Township were entitled to compensation, and has crafted a way to do so that benefits the township in our current litigation over affordable housing.”
As part of the township’s separate Affordable Housing Declaratory Judgment case, also being heard by Judge Jacobson, arguments will be presented by the parties involved as to what the Hopewell Township affordable housing obligation should be, meaning how many low- and moderate-income housing units should be built in the municipality.
A proposal Hopewell Township submitted about seven years ago to make provisions for roughly 500 affordable units was rejected by the state’s Council on Affordable Housing (COAH).
Figures recently released by the Fair Share Housing Center organization indicate Hopewell Township should provide 1,000 new affordable housing units.
As a means of obtaining its own affordable numbers, the Hopewell Township Committee in early July approved a cost-sharing agreement with hundreds of other municipalities in New Jersey to finance the preparation of a statewide fair-share affordable housing analysis being undertaken at Rutgers University through Dr. Robert W. Burchell.
