EATONTOWN – Municipal officials in Eatontown have authorized a settlement agreement regarding the municipality’s legal obligation to provide opportunities for the development of affordable housing in the community.
“We have reached a proposed settlement agreement for the borough’s affordable housing obligation, as well as how to meet that obligation,” said attorney Andrew Bayer, who handles affordable housing issues for Eatontown.
Bayer said the Borough Council has been granted immunity from builder’s remedy lawsuits until July 2025 due to its “good faith participation in the (affordable housing) process.”
Affordable housing is defined as housing that is sold or rented at below market rates to individuals and families whose income meets certain guidelines.
A builder’s remedy lawsuit is legal action that can be taken by a developer against a municipality that does not comply with affordable housing law.
Bayer said officials now have the benefit of determining how the borough’s affordable housing obligation will be fulfilled rather than being told by a court how and where to include low and moderate income housing in Eatontown.
Bayer said the borough’s affordable housing obligation for 1987-99 was 504 units. He said that obligation had been fulfilled through a series of projects.
“What was really an issue in the litigation was the third round obligation (post-1999),” Bayer said. “What this proposed settlement provides for is that the borough’s obligation will be 382 affordable housing credits. It’s actually not units, its credits.
“As a result, you have to get to 382 credits, but you get bonus credits for certain kinds of housing. The main reason I am recommending this settlement to the council is that the 382 (credits) is a very favorable number for the borough,” he said.
Bayer said the settlement to fulfill 382 affordable housing credits was determined in a decision by Mercer County Assignment Judge Mary C. Jacobson, who concluded after “a six-month trial and a 200-page opinion what an appropriate fair share methodology is for this round.”
Bayer said David N. Kinsey, who was retained by the Fair Share Housing Center, Cherry Hill, initially determined Eatontown’s third round affordable housing obligation should be more than 800 affordable housing units.
The Fair Share Housing Center is an “organization devoted to defending the housing rights of New Jersey’s poor through enforcement of the (affordable housing laws),” according to its website.
“Courts throughout New Jersey are using Judge Jacobson’s decision as the baseline and framework to suggest towns settle complying with (her) methodology. The Fair Share Housing Center … has agreed to the 382 number,” Bayer said.
A Dec. 17 memorandum issued by attorney Adam M. Gordon, associate director of the Fair Share Housing Center, states that Eatontown’s third round fair share obligations “have yet to be definitively determined.”
According to the memorandum, the construction of the Monmouth Mall mixed use development will provide 176 credits. Other properties designated for affordable housing are Howard Commons on the Fort Monmouth parcel, 55 credits; Meadowbrook I Project, 72 credits; Spring House Apartments, one credit; a second project on a Fort Monmouth parcel, 60 credits; Suneagles Golf Club, 15 credits; and Meadowbrook II Project, 23 credits (capped).
No one on the council commented on or asked a question about the issue.
On a roll call vote, Councilman Anthony Talerico, Councilwoman Bridget Harris, Councilman Al Baginsky, Councilwoman Jennifer Sherrod, Councilwoman Virginia East and council President Patti May Kelly voted “yes” to approve the terms of the settlement agreement.
Bayer said a fairness hearing regarding the settlement agreement between Eatontown and the Fair Share Housing Center will be held in state Superior Court next year. A judge will review the proposed settlement in what is a regular part of the affordable housing process.
Following the vote, Mayor Dennis Connelly thanked Bayer for the settlement that was voted on, saying, “you worked hard and came up with some creative ideas.”