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Housing  Element and Fair Share Plan
Master Plan 2000

 

Housing  Element at Fair Share Plan

Introduction 

Municipalities in New Jersey are in a unique position when it comes to affordable housing issues. New Jersey consistently has among the highest suburban real estate values in the country. Despite this, or maybe because of these high values, the New Jersey State Supreme Court in a series of rulings has determined each municipality has a constitutional obligation to provide a realistic opportunity for the construction of lower cost housing within it=s borders.

 

In 1985 the New Jersey State Legislature passed and Governor Thomas Kean signed the Fair Housing Act into law. Among other things, this act established the Council On Affordable Housing (COAH). COAH is not a funding source for affordable housing nor is it a production agency. Rather, COAH is an administrative agency who=s role is to foster the development and construction of housing which is affordable to low and moderate income households.

          

Housing elements in addition to examining current and future housing stock must also explore the municipality=s citizenry. This analysis must include socio-economic factors such as household size, income level, and age. How this population of people is currently employed and it=s potential future employment are also questions which meed to be examined.

 

This particular housing element builds upon and amends as earlier one prepared for and adopted by the Denville Governing Body in 2000. Our 2000 Fair Share and Housing Plan was submitted to COAH and received a grant of Substantive Certification on August 2, 2000. Denville=s plan and the conditions contained within COAH=s substantive certification employed a number of mechanisms to promote the realistic opportunity to develop low and moderate income housing both here in Denville as well as in Essex County. Each of these are briefly described below.

 

Municipal Construction

 

At a cost of $1.45 million Denville has purchased on the open market the 42 acre McGreevy site located in the Union Hill section of town. An additional $250,000 or so has been spent developing infrastructure plans. Denville has made much progress in preparing the site for construction. Existing tenants living on the site were relocated. Existing buildings and structures were demolished. A wetland determination was completed and a Letter of Interpretation (LOI) has been secured. Agreements with Parsippany were entered into, thereby permitting domestic waste generated on this site to be treated at the Parsippany sewage treatment plant. Department of Environment Protection endorsement of this agreement has been secured. The Mc Greevy tract has been subdivided and   preliminary site plan approval secured from the Denville Planning Board. All state approvals necessary in order to bring the utilities and build a new road to serve the McGreevy tract have been obtained by the township. As a result late in 1999 a contract was awarded to construct the infrastructure. At this time the work is progressing very well and the new roadway is nearing completion.

Denville and the Morris County Housing Authority have entered into an agreement whereby Denville agreed to sell at fair market value a 13 acre parcel to the Housing Authority. The Housing Authority is committed to constructing fifty- seven(57) three- bedroom(3) family style apartments. Primary funding is being provided by the Federal Department of Housing and Urban Development.

 

As of this writing the Housing Authority has taken title and paid for the 13 acre parcel. They are preparing final architectural plans and specifications while they wait for the Township=s contractor to finish constructing the infrastructure. It is anticipated the Housing Authority will begin construction of the housing in the Fall of 2001.

 

Denville has also purchased the Cook=s Pond property located along Diamond Spring Road. This property is located slightly north of the business district. Denville acquired this property in July 1995 for $1.2 million. Cook=s Pond was specifically purchased to provide additional public recreation facilities and as a senior citizen housing site.

 

Denville Township has entered into an agreement with the non-profit Madison Affordable Housing Corporation (MAHC). MAHC is a recognized Community Housing Development Organization. MAHC has been selected by Denville to redevelop the Cook=s Pond property. Denville and MAHC will design, construct, and manage, a three(3) story senior citizen building containing seventy (70) apartments. Principal funding source is Low Income Housing Tax Credits. In accordance with the requirements of this program which is administered  by the Internal Revenue Service every senior  apartment in the building will be affordable and reserved for low income households.

  

 

Great strides have been made in moving this project from dream to reality. In February 1997 Denville began discussions with Madison Housing. In April the two parties entered into a signed agreement. Since April this team successfully sought two (2 ) grants totaling $366,000 ran an architectural design competition, and selected an architect.                     

 

Madison Affordable Housing Corporation, acting in their capacity as the Cook=s Pond redeveloper, has hired a civil engineering firm, investigated subsurface geological conditions and interviewed a number of design/build contractors. A financial services firm has been retained to assist in securing low income housing tax credits.

Denville Township has taken other steps forward in anticipation of construction and occupancy. This property has been subdivided in order to create a site of almost eight (8) acres from the original forty or so when the property was purchased. A redevelopment plan has been adopted by the Planning Board and approved by the Mayor and Council pursuant to the Local Development and Housing Law. Funding sources have been secured, this project is fully funded. Denville=s Mayor and Council after a public hearing adopted Ordinance #28-97 thereby creating an Affordable Senior Citizen Housing District. Thereafter the Denville Planning Board reviewed and approved a variance free site plan in mid Winter of 1998.

 

All this work lead to the point were on June 15, 2000 Denville celebrated the grand opening of the Cook=s Pond Senior Housing Building. The initial occupants were allowed to move into the building the first week in August after the contractor finished some last minute details.

  

Regional Contribution Agreements (RCA)

 

Denville Township and the City of Newark entered in to a regional contribution agreement (RCA). As a result of this agreement responsibility for 136 units of affordable housing were transferred to Newark. Each of these transferred units cost Denville $15,000, thereby bringing the total cost of the RCA to $2,040,000. It needs to be stressed that this agreement has been fully funded by Denville. The transferred housing has been both constructed and occupied by income qualified households. This portion of the plan is totally complete.

  

Fair Share Plan

 

After reviewing all pertinent background data and studies COAH has determined that Denville Township has a precredited  need or deficit of 420 units of affordable housing for the twelve (12) year period commencing in 1987 and running through 1999. In the year 2000 COAH will be publishing the new numbers and rules to implement the third COAH six(6) year planning cycle. Subtracting out certain municipal adjustments reduces this housing obligation to 391 units.

 

Denville has in the past and will continue into the future to address this housing need through a variety of approaches. The next section of the Housing Element and Fair Share Plan will detail the mechanisms which will be or have been employed to satisfy our constitutional obligation.

 

 Re- Zoning Activities 

Two (2) remaining parcels from Denville=s original certified plan  have not begun construction activities. Neither have their owners made the voluntary payments to Denville. It should be noted however that Denville has aggressively moved forward and re-zoned both of these tracts for higher density housing notwithstanding the failure of the developers to make the promised in-lieu contributions. The fact neither of these properties have moved forward is outside the control of Denville Township. Recognizing the failure of the developers to move forward Denville is now proposing to delete Block 40001; Lots 8, 11 & 13 from the current Fair Share Plan.

   

Block 40001; Lot 8, Block 40001; Lot 11, and Block 40001; Lot 13, is slated to be removed from Denville=s Fair Share Plan. This property has had the benefit of being included within our plan for over twelve (12) years. Back in 1988 or so Denville did in fact change the zoning regulations increasing the density of housing units that could be constructed on the property pursuent to an agreement entered into between Denville and a contract purchaser of the property. When the contract purchaser/ developer failed to satisfy his obligations according to the agreement Denville deemed the agreement null and void. It should be noted a small amount of money was posted as Agood faith@ and to be held in escrow until such time as a subsequent agreement could be signed between the parties. No such second agreement was ever entered into.  We are removing this second non-performing property from the plan at this time.

Reasons for taken such steps are simple. The property has not been developed in the intervening twelve (12) years. Despite Denville=s re-zoning of the property to a greater permitted density there is still no signed agreement detailing how the property is to be developed. One of the parties to the posting of the money to be held in escrow has now requested the return of the money to him. It should be noted that at the public hearing on this element it was represented to the Board that this request for the return of the “good faith” money has been withdrawn. Further Denville has now adopted a development fee ordinance and no longer is expecting the voluntary contribution from this site to help fund our rehabilitation program or our newly proposed buy-down program.

 

Private Development Activities

 

Saint Clares Health Services administers a four (4) bedroom group home located at 187 Morris Avenue. The New Jersey Division of Mental Health licensed the facility as a group home on June 1, 1990.

 

Housing Rehabilitation

 

Morris County is blessed with a very capable Department of Community Development. They manage and oversee a very active low/moderate housing rehabilitation program. COAH has already awarded Denville credit for 29 rehabilitated housing units. Since the time Denville was originally granted substantive certification an  additional thirteen (13 )housing units have gone through the approved rehabilitation program. Denville seeks credit for each of these thirteen rehabilitated housing units.

 

Earlier this year Denville entered into a formal agreement with the Morris County Department of Community Development to rehabilitate an additional 53 substandard housing units here in Denville Township. Denville will provide the financial resources while the County office will advertise and administer the program. Even with these additional rehabilitated units of substandard housing Denville will not exceed the limits  on rehabilitation as established by COAH.

 

Buy-Down Program         

 

A number of dwelling units here in Denville Township would be affordable to low and moderate income households if Denville had a buy-down of previously owned units program. Denville plans to pursue a buy-down of previously owned dwelling units in order to address any unforeseen shortfall in the previously COAH approved rehabilitation program which is to be administered through the Morris County Community Development Office. Funding for this buy-down program is to come from the developer fee ordinance recently proposed by Council and for which COAH approval is sought. A back up source of funds for both the buy-down program and the rehabilitation program is the financial resources of the township.

Like the rehabilitation program persons and families who wish to participate in this buy-down program shall be required to meet COAH's income eligibility requirements. The marketing and publicity for the buy-down program shall be administered by a third party experienced in running affordable housing programs here in Morris County. At this time a program partner has not been selected since this aspect of our amended Fair Share Plan has not yet been approved. Denville will seek maximum credit of ten (10) units of credit for this newly proposed feature in our Fair Share Plan.

 

Rules of the Game

 

COAH allows municipalities to earn credits and bonuses  if their plan contains certain features. For instance, if a community enters into an agreement with another community within the same COAH established housing region the sending community receives a 1:1 credit for every unit so transferred. Rental housing units which are income restricted generate a 1:1 bonus credit on top of the credit for the actual unit. Utilizing the COAH established regulations Denville intends to seek credit for the following units and activities :

 

Activity                                          Credits                                 Bonus

 

Completed Rehabilitation through County       13                                      None

Additional Rehabilitation with County                 53                                     None

Buy-Down Program                                                 10                                       None                

MCHA/ McGreevy Development                            57                                          57

Cook=s Pond (Age Restricted Units Only)         64                                            7

 St. Clare=s Group Home                                          4                                             4                                                                                                      

Total Including all Waivers and Credits                                   405

 

               COAH will soon be publishing new housing needs for the upcoming six year cycle covering the years 2000 to 2006. Our plan presently calls for more than required. Denville will request that those units be counted toward our future obligation.    

 

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