JACKSON – The clock is ticking for municipal officials throughout New Jersey to commit their towns’ affordable housing trust funds to specific projects or risk have those funds taken by the state.
The affordable housing trust funds have accumulated over several decades as developers built projects in communities (generally not affordable housing projects) and paid a fee per unit built into the municipality’s trust fund, with the understanding that the town would use that money to get affordable housing built.
Published reports have indicated that a total of almost $200 million has been accumulated in those trust funds by New Jersey municipalities. A law that took effect in 2008 set July 2012 as the time when the trust funds had to be committed to affordable housing projects or forfeited to the state.
The Jackson Township Council passed a resolution on May 8 calling on the state Legislature to pass a bill that would extend the July deadline.
Recent published reports have indicated that the Legislature is unlikely to extend the July deadline.
According to the law, after their seizure, the funds would be remitted to the state treasurer to be used for affordable housing purposes. The state, according to the law, could also use the money for creating affordable housing in urban aid municipalities .
John Maczuga of T&M Associates is Jackson’s affordable housing planner and he said Jackson is one municipality where officials are attempting to formulate an affordable housing spending plan.
“Jackson has a sizeable amount in its trust account,” Maczuga said. “If they are wise… they need to get a spending plan approved and commit the monies that are presumably at risk” of being forfeited to the state.
Jackson has $2.6 million in its affordable housing trust fund.
Maczuga said he does not anticipate a problem with Jackson’s ability to commit the $2.6 million to affordable housing projects. He said the township already has a potential plan for at least a portion of the funds.
“We will have a spending plan completed and into (the state) shortly,” he said. “The plan will be submitted to the governing body within the next few weeks. At that point, the court will have to endorse the spending plan before it goes to (the state).”
Currently, Jackson is pursuing a program offered by the state Department of Community Affairs that could bring housing for the special needs individuals to the township.
According to Maczuga, other plans are in the works, although nothing has been finalized.
“There is likely to be a rehabilitation program for (homes that are owned by) lowand moderate-income residents in town, although that has not been committed yet,” Maczuga said.
Having worked as Jackson’s affordable housing planner from 1989 to 2003, and from 2007 to the present time, Maczuga said the township’s affordable housing efforts have been well organized in recent years.
According to Maczuga, Jackson met its second round state-mandated affordable housing obligation of 1,247 units and has an extra 392 that could be used in a potential third round.
“I believe Jackson is entitled to crediting for 392 units for whatever the future obligation will be,” he said. “I think the town has done its fair share. They meet the current status of the (affordable housing) doctrine and have met their current obligations. They are compliant.”