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. |