Presentation to Citizens COAH / West Farms Road Project Township Council Meeting. October 19 th, 2015

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1 Presentation to Citizens COAH / West Farms Road Project Township Council Meeting October 19 th, 2015

2 Topics What is COAH? How to Apply for Affordable Housing Howell Township s Obligation and Status to Date PILOT Program Information and Status of Current PILOT Agreements What s Happening in Other Towns? West Farms Road Project Review Why Now?

3 What is COAH? COAH originated from the Mount Laurel Doctrine, Fair Housing Act - New Jersey State Constitution / Mount Laurel I (1975) / Mount laurel II (1983) State legislative mandates require all municipalities and state agencies with land use authority to plan, zone for and take affirmative actions to create realistic opportunities for their fair share. Qualifying for Mount Laurel Housing Be a US citizen or permanent resident alien Be at least 18 years old The purchase must use the affordable unit as his or her primary resident Have sufficient income to qualify Meet income and documentation required needs Also must meet credit criteria for landlord and mortgage Teachers / Police Officers / Fire Fighters / DPW Staff / Senior Citizens / Recent College Graduates

4 How to Apply for Affordable Housing 1. Complete a preliminary application on-line at: 2. Priority is given to Sandy affected Howell residents for 90 days. After that date, a waiting list is established and a lottery system is created. 3. You will be contacted by the municipal housing consultant (CGP&H) about available properties. CGP&H will review your completed application and request additional information if needed. 4. After you are notified that you are income certified, you are placed in the lottery system. Once selected, the tenant and the property owner can sign the COAH lease agreement prepared by CGP&H.

5 Current Changes / Dates Each Municipality is required to determine how to develop their fair share of the regions housing needs. Howell Township has not met its affordable housing plan. Key dates include: 2008 Howell Township submitted their third round obligation plan, which called for 870 units of affordable housing before our plan was approved, Governor Christie stayed the Council, remanding affordable housing back to the courts. September, 2015 special master judge assigned to review Howell s current status and plan. September, 2015 Township files for an Order of Immunity to protect against declaratory judgements while our plan is being formulated. October 9 th - deadline for all expert reports on methodology regional need. October 14 th - deadline for parties to confer regarding compliance standards which means such items as rental bonus credits and senior cap. October 24 th - deadline for parties to contact special master to conduct further discussions If appropriate. November 5 th - case management conference.

6 Current Obligations and Strategies Howell s 3 rd Round Obligation was determined to be 870 units. Our current inventory is 255 units consisting of: Rehabilitation of existing substandard housing stock Single family dwellings (portions of various residential developments) Single family rental units (Verdana, 4463 applications pending, 366 are Howell residents) Special needs housing (Akabe, 250 pending applications) Assisted living residences (Meridian) RCA s (Asbury Park), not permitted in 3 rd round options We expect our final obligation to be between 870 and 1000 affordable units. Our current affordable housing fund is approximately $900,000.

7 PILOT (Payment In Lieu of Taxes) Programs Provides up-front funding to the township based on a negotiated percentage of rental income (as opposed to assessed value). Typically range from 3.5% to 5% contribution rate. Provides funding only to municipality (not BOE, Fire, etc.). Howell currently has (4) active and (1) development PILOT, with annual payments of $412,950 (42% of full 2014 tax rate).

8 Ways to Limit Development Howell Township has aggressively employed various strategies to control residential growth: Aggressively litigated appeals from rejected developers. Restrictive Zoning Measures repealed existing ordinances for schools (only permitted within ARE-2 and PMU zones, conditional uses within SED zones) and places of worship (only permitted as a permitted use in the PMU zone, conditional uses within all HD, ARE, SEC, similar zones). Farmland Preservation. Providing sound infrastructure where desired (Freewood Acres sewer projects)

9 Builder s Remedy Lawsuits A Builder s Remedy Lawsuit is simply legal action taken by a property developer to force a municipality to permit construction of a large, multifamily housing structure or complex. Such lawsuits are used by developers to force the construction of housing with 20% maximum affordable housing contributions, taking advantage of unfair COAH mandates, when in reality they only result in building large quantities of market rate homes for profit. Best solution filing an affordable housing plan with the Courts that will review our fair share plan to satisfy previous Council on Affordable Housing (COAH) mandates, the entity previously created by the state legislature and responsible for determining affordable housing requirements, municipalities can protect themselves against Builder's Remedy Lawsuits.

10 What s Happening in Other Towns? Brick Township filed similar Order of Immunity as Howell Township, still formulating plan to comply with COAH, retained Mount Laurel attorney for additional protection. (Source: Brick ShoreBeat, July 10, 2015) Manalapan still developing their plan which required 300 units, but they estimate it may be as high as Several interveners and objectors have noticed the township, likely leading to Builder s Remedies cases. Currently reviewing an 88 unit project and will be approving another one for 120 units. (Source: APP articles week of October 12, 2015) Marlboro has had no formal action on their 3 rd round plan. In the midst of 10+ Builder s Remedy suits. (Source: New Jersey Builders Association website, August 17, 2015) Jackson anticipate their obligation to be 1000 units and are about 500 units short. Freehold Township are planning on using inclusionary developments that meet the 20% affordable criteria to meet their remaining obligations, but are arguing their town is already at maximum build-out. Wall are expecting their obligation to be 1000 units and are trying to comply with their December 8th deadline. They have no inclusionary projects planned and are very fearful that Builder s Remedy suits are coming.

11 West Farms Road Proposal

12 West Farms Road Proposal Land was donated to owner, who is now in negotiation with developer (Walter s Group) to build 72 rental units, all 100% affordable. Township Council is considering (2) ordinances regarding this proposal: Creation of a site and project specific inclusionary zone. Approval of a 8.0% PILOT program for this project. The project will generate 144 credits towards our Affordable Housing Plan. The project also includes a commercial component that is being retained by the original owner and will be developed separately.

13 Why West Farms Road? / Why Now? Facts: Howell has a need for Affordable Housing. This project gives a 2:1 credit (144 total) towards our obligation. Typical projects provide a maximum of 20% affordable. We would need (800 needed credits / 20% per project, or 4000 total residential units to meet our goal. The area meets all requirements for available funding (transit, infrastructure, commerce). The Walters Group is a reputable developer of affordable housing. Several other projects / developers have already been rejected. If both ordinances are approved, the entire project will be presented to the Planning Board for final approval.

14 Why West Farms Road? / Why Now? Facts: Howell has a need for Affordable Housing. This project gives a 2:1 credit (144 total) towards our obligation. Typical projects provide a maximum of 20% affordable. We would need (800 needed credits / 20% per project, or 4000 total residential units to meet our goal. The area meets all requirements for available funding (transit, infrastructure, commerce). The Walters Group is a reputable developer of affordable housing. Several other projects / developers have already been rejected. If both ordinances are approved, the entire project will be presented to the Planning Board for final approval.

15 Why West Farms Road? / Why Now? Facts: The proposed approvals only apply to the Walters Group. If the current owner doesn t complete the transfer, or the use changes, both ordinances become null and void. The PILOT is needed for the Walters Group to secure federal/state funding to offset their revenue from market rate to affordable homes. Without the PILOT, no funding, no development, no COAH credits. The ordinance provides priority consideration for qualified Howell residents. MOST IMPORTANT Failure to demonstrate the development of an affordable housing plan leaves us vulnerable to builder s remedy lawsuits where a reviewing judge can side with the developer to allow any type of housing, anywhere in the township, with no restrictions and no oversight by township land use boards or control by the Township.

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