Post by admin on Dec 17, 2008 8:18:50 GMT -5
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Freehold Borough facing mandate to construct affordable housing
BY CLARE MARIE CELANO & MARK ROSMAN Staff Writers
FREEHOLD — Borough officials are reviewing their options as they face a deadline to submit a third round affordable housing plan to the state Council on Affordable Housing (COAH). New Jersey municipalities are expected to file a third round plan by Dec. 31.
The first two rounds of New Jersey's affordable housing regulations ran from 1987- 99. Under the previous guidelines Freehold Borough was permitted to accept payments from other municipalities and to rehabilitate substandard housing within its borders.
Those regional contribution agreements are no longer permitted under a law that was signed by Gov. Jon Corzine earlier this year.
COAH's third round obligation will run from 2004-18. According to numbers provided by COAH, Freehold Borough must provide 37 new affordable housing units.
Affordable housing is defined as housing that is sold or rented at below market rates to people whose income meets regional guidelines established by COAH.
However, it is possible that Freehold Borough will not have to build any of the 37 new affordable housing units if commercial growth and market rate residential growth does not occur in the municipality.
New Jersey Department of Community Affairs spokesman Chris Donnelly said, "Municipalities must submit a plan based on their third round obligation number as determined by COAH (i.e., the 37 units assigned to Freehold Borough). But the third round uses a growth share method. Growth share is a way to measure a
municipality's affordable housing needs based on actual growth that takes place.
"Under growth share, one unit among every five housing units created in a municipality must be affordable; one affordable housing unit must be provided for every 16 jobs created in a municipality, measured by new commercial development. A municipality zones to accommodate affordable housing among market rate development.
"But a municipality is only responsible for building affordable housing when it has built market rate housing and commercial development. If neither market rate housing units nor commercial development are built, affordable units do not have to be built, because no growth has taken place," Donnelly said.
Borough Administrator Joseph Bellina said Freehold Borough has a long history of providing affordable housing.
"In fact, we provide so much that we are one of the most successful in the Monmouth County area to provide this type of housing," he said.
Bellina said the borough will continue to be very busy rehabilitating between 90 and 100 homes with previously received regional contribution agreement funds over the next several years.
"With respect to the 37 new units (the borough is required to build from 2004-18), I simply don't know where open land is available to achieve that number," the administrator said.
According to Connelly, "Rehabilitation (of substandard housing) would qualify for credit toward the rehabilitation obligation."
He said the growth share obligation must be new construction. Connelly said a municipality may use surplus regional contribution agreement funds with the permission of COAH.
Freehold Borough facing mandate to construct affordable housing
BY CLARE MARIE CELANO & MARK ROSMAN Staff Writers
FREEHOLD — Borough officials are reviewing their options as they face a deadline to submit a third round affordable housing plan to the state Council on Affordable Housing (COAH). New Jersey municipalities are expected to file a third round plan by Dec. 31.
The first two rounds of New Jersey's affordable housing regulations ran from 1987- 99. Under the previous guidelines Freehold Borough was permitted to accept payments from other municipalities and to rehabilitate substandard housing within its borders.
Those regional contribution agreements are no longer permitted under a law that was signed by Gov. Jon Corzine earlier this year.
COAH's third round obligation will run from 2004-18. According to numbers provided by COAH, Freehold Borough must provide 37 new affordable housing units.
Affordable housing is defined as housing that is sold or rented at below market rates to people whose income meets regional guidelines established by COAH.
However, it is possible that Freehold Borough will not have to build any of the 37 new affordable housing units if commercial growth and market rate residential growth does not occur in the municipality.
New Jersey Department of Community Affairs spokesman Chris Donnelly said, "Municipalities must submit a plan based on their third round obligation number as determined by COAH (i.e., the 37 units assigned to Freehold Borough). But the third round uses a growth share method. Growth share is a way to measure a
municipality's affordable housing needs based on actual growth that takes place.
"Under growth share, one unit among every five housing units created in a municipality must be affordable; one affordable housing unit must be provided for every 16 jobs created in a municipality, measured by new commercial development. A municipality zones to accommodate affordable housing among market rate development.
"But a municipality is only responsible for building affordable housing when it has built market rate housing and commercial development. If neither market rate housing units nor commercial development are built, affordable units do not have to be built, because no growth has taken place," Donnelly said.
Borough Administrator Joseph Bellina said Freehold Borough has a long history of providing affordable housing.
"In fact, we provide so much that we are one of the most successful in the Monmouth County area to provide this type of housing," he said.
Bellina said the borough will continue to be very busy rehabilitating between 90 and 100 homes with previously received regional contribution agreement funds over the next several years.
"With respect to the 37 new units (the borough is required to build from 2004-18), I simply don't know where open land is available to achieve that number," the administrator said.
According to Connelly, "Rehabilitation (of substandard housing) would qualify for credit toward the rehabilitation obligation."
He said the growth share obligation must be new construction. Connelly said a municipality may use surplus regional contribution agreement funds with the permission of COAH.
