Edison officials have a message for the state: Don’t touch our money. The Township Council approved a resolution last week that urges Gov. Chris Christie to extend the time period for municipalities to commit to spending trust fund money that has been set aside for constructing affordable housing units.
“A lot of towns are sending this resolution to the governor,” said Council President Robert Karabinchak.
The state is threatening to take $200 million that was supposed to be used by municipalities to help meet their obligations to the state Council on Affordable Housing (COAH). Municipalities have until July 17 to commit to spending their share of the funds, which were derived from development fees. The state would then decide how to distribute these monies.
The Edison council discussed the matter and passed the resolution unanimously at its April 11 meeting.
“We have $4 million in a trust fund for COAH obligations,” Karabinchak said. “Since COAH is in turmoil and Edison has done its due diligence with a program for its third round [COAH obligation], which was already signed off by the state, we don’t want the state to take away our money … We have been doing the right thing.”
Once the money leaves Edison, there is no guarantee that the township will get it back, he added.
“We need to fight this together so they won’t sweep out the account,” he said.
Township Attorney Karl Kemm said Edison can file an application stating that it has projects that are close to fruition, one being the affordable housing slated for the former Camp Kilmer site. “This project is close to being at a point where we would need to use the money in the trust,” Kemm said. “I am not sure that we can save all of the money, but we have a good argument to save some of the money. We have a plan for producing units and we have a good track record.”
The proposed uses at the former Army camp, which closed in 2009, include 120 townhouses, a preschool and a community center.
The council’s resolution is in support of Assembly Bill 2717, which would provide a four-year extension for municipalities to commit the housing trust fund dollars. This money, the resolution states, should be used as intended — to subsidize the costs for municipalities in meeting their affordable housing obligations, while assuring that these costs do not fall to local taxpayers.
The forfeiture of these dollars would displace this financial obligation to the taxpayers in these communities, according to the resolution.