Affordable housing project undergoes review by Howell planning board

HOWELL – An application that proposes the construction of 72 apartments remains under review in Howell and was the subject of questions from residents during a recent meeting.

Howell Family Apartments LLC (the Walters Group) is seeking approval from the Planning Board to construct nine two-story buildings at the corner of West Farms and Fort Plains roads. The 72 apartments would qualify as affordable housing and be rented to individuals and families whose income meets certain guidelines.

The project would also include a 2,900 square-foot leasing office/community building, a recreation area and a maintenance building, according to the application.

Howell Family Apartments was represented by attorney John Giunco, engineer Steven Bagge, Edmond Speitel Jr., the land development manager at the Walters Group, and Melissa DeMayo, the director of property management at the Walters Group, at the board’s Feb. 15 meeting.

Giunco said all 72 apartments will be affordable housing and he said Howell will receive two affordable housing credits for each apartment (144 credits), as township officials work to fulfill a state mandated obligation to provide opportunities for the construction of affordable housing.

The attorney said the apartments will be deed restricted for 30 years. The residents will be people who earn between 30 percent and 80 percent of the median income in the Monmouth, Ocean and Mercer county region.

Giunco said a two-person household living at the Howell Family Apartments could earn between about $22,600 and $60,300 annually.

“Typically our observations are that these (residents) consist of teachers, nurses, social workers, paralegals, police officers, government and public workers, retail and sales people … they are young people starting out or older people who are on a fixed income and people who were denied housing for other reasons due to a lack of ability to find housing they can afford with their income,” Giunco said.

Speitel said each building will have eight apartments. There will be 14 one-bedroom apartments (800 square feet), 43 two-bedroom apartments (1,100 square feet) and 15 three-bedroom apartments (1,300 square feet).

He said the Walters Group has been developing affordable housing since 2008 and would build, own and manage the Howell Family Apartments. Speitel said the company has never sold one of its affordable housing communities to another entity and has no intention of doing so.

Prospective tenants will undergo a credit check and a criminal background check, according to the testimony.

The board’s chairman, Robert Nash, asked Speitel about other locations where the company manages and operates affordable housing.

Speitel said the Walters Group manages and operates 112 units in Stafford Township, 52 units in Whispering Hills in Barnegat Township, 94 units in Laurel Oaks in Barnegat Township, 118 units in Lacey Township, a 102-unit adult community in Toms River and a 70-unit adult community in Barnegat Township.

Residents were permitted to ask questions about the Howell Family Apartments following the testimony.

Carmine Longo asked if a criminal background check referred to felonies, misdemeanors and/or convictions.

Speitel said although he did not have the exact definition of a crime, “something like a felony” would disqualify a potential tenant, but an incident like driving while intoxicated would not.

Kathryn Leibel asked, “How many other properties does (the Walters Group) have that are going to be tax free for 50 years?”

Speitel said he took Leibel’s question to mean the company would make an annual payment to Howell in lieu of paying annual property taxes. He said all of the company’s other communities, with one exception, do the same in lieu of paying taxes that are determined by the assessed value of the property in a given year.

Kathi Novak asked about the possibility of the property in Howell being sold if the Walters Group eventually becomes the owner.

Speitel said the company has no intention of selling the property. He said in the event the property was sold, it would have to be sold to a qualified affordable housing operator.

Novak asked what the Walters Group’s connection is to the current owner of the property, the Rabbi Israel Meyer Hacohen Rabbinical Seminary of America, Queens, N.Y.

“We are the contract purchaser of the property,” Speitel said, adding that if and when the company obtains all of the approvals that are necessary for development to proceed, the property will be sold by the current owner to the Walters Group.

“In order for this project to be operational, the Walters Group would be the owner of the site,” Giunco said.

Colin Campbell asked the applicant to confirm that a portion of the project would be paid for with relief funds associated with superstorm Sandy, which struck New Jersey in 2012. The applicant confirmed that information.

Campbell asked if any preference for the apartments will be given to residents who were victims of Sandy. He was told there will be a time during which residents of any town who can document Sandy damage to their residence will be given preference for an apartment.

Spietel said if there are 72 qualified applicants and all 72 were displaced from their homes because of Sandy, those applicants could occupy every unit at the Howell Family Apartments.

The board did not vote on the application that evening and the matter was carried to the April 5 meeting.