Increased costs resulting from impact of hurricanes Katrina and Wilma blamed
By: Marjorie Censer
The long-delayed Elm Court II project, in the works for nearly nine years, has run into another major obstacle.
The closing date, as well as the groundbreaking scheduled for Nov. 9, has been postponed because of the increased costs of building materials and labor caused by hurricanes Katrina and Wilma.
The project is an expansion of Elm Court, the apartment building off Elm Road that houses low- and moderate-income elderly and disabled Princeton residents. The original development of 88 units was built in 1985; the new building will add 68 units.
"I can’t tell you what a bummer this is," said Sheila Berkelhammer, president of the Princeton Community Housing board of trustees.
Because of the construction work under way in New Orleans and other areas affected by the recent hurricanes, there is now a national shortage of materials such as shingles and siding, Ms. Berkelhammer said.
"Prices have gone through the roof for building materials," she said. "The hurricanes have caused such enormous damage that the building industry has been totally devoted to getting that done."
The U.S. Department of Housing and Urban Development which provided the bulk of the project’s $10.5 million funding has told PCH the allotted funding is not sufficient to close on the project, Ms. Berkelhammer said. In addition, HUD will not allow PCH to access the contingency fund associated with the project in the case of another problem.
Ms. Berkelhammer said PCH is now applying to HUD for amendment funding to cover the additional costs. The application process is expected to take another four to five weeks.
She said PCH is disappointed and concerned about Elm Court II.
"The big worry is winter’s coming," she said.
Princeton resident Steve Cohen will serve as architect for the project, which will be constructed by Costanza Builders of Cherry Hill.