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Summer Sizzles with the AHPNJ June Symposium
A Professional Perspective
On June 18th, AHPNJ held its first
all-day event. The Symposium on Ex-
piring Affordability Controls was
held at the Metro Top Plaza in South
Iselin and 79 AHPNJ members and
non-members registered for the
event. An all-star line-up was re-
cruited to present various topics. Up
first was Shirley Bishop, from Shirley
M. Bishop, P.P., LLC, to review the
history of restrictions. Laura Denker,
Esq., Fair Share Housing Center, fol-
lowed with a legal update including
the status of COAH, and Gov. Chris-
tie’s attempted seizure of housing
trust funds. Rounding out the morn-
ing were Ed Schmierer, Esq., Mason,
Griffin and Pierson, reviewing the
deed restrictions on rental proper-
ties and Frank Piazza, Piazza & Asso-
ciates, discussing what to do after
controls on rental units have expired.
Jeffrey Surenian, Esq., Jeffrey R.
Surenian and Associates, gave the
group something to chew on as he
presented a lunch presentation on
the current COAH issues. Mr. Sureni-
an spent time discussing the Su-
preme Court decision on the chal-
lenge to the second iteration of
round three regulations, the build-
ers’ remedy suits and the K. Hovnani-
an at Cedar Grove IV appeal to dis-
miss the builders’ remedy suit.
There was no room for relaxation
with the afternoon dedicated to Sales
Controls. Heather Mahaley, Director
of Plan Administration, COAH, offered
insight as to what is on the minds of
homeowners, municipalities and lend-
ing institutions when controls are ex-
tended to help better understand how
to approach the situation. Ed
Schmierer made a second appearance
with a discussion on the impact of the
various legal documentation needed
to be extended if affordability controls
are to continue on a unit.
Jay Lynch, the Planner for Toms
River Township offered his expertise
on affordability controls from a
Continued on page 7.
Inside this issue:
President’s Message 2
Featured Sponsor: Clarke Canton Hintz
3
Expiring Affordability Controls on Affordable Housing
4
Northern Regional Meeting 5
East Brunswick Community Housing Corporation
6
Thank You, Sharon Clark! 8
AHPNJ is an independent
organization whose mission is
to promote and enhance pro-
fessionalism and knowledge in
the field by supporting af-
fordable housing through dia-
logue, ethical standards, edu-
cation, advocacy and policy
guidance.
A publication of the Affordable Housing Professionals of New Jersey
Summer 2013
Volume 6, Issue 2
Heather Mahaley speaks with moderator Randy
Gottesman and panelists Sharon Clark, Jay
Lynch and Jeffrey Surenian looking on.
AHPNJ 19 Stonerise Drive Lawrenceville, NJ 08648 (609) 310-6070 admin@ahpnj.org www.ahpnj.org
Picture from the June 18
event
President’s Message Wendy C. Brown
City of Orange Township
Diane E. Clapp
Readington Township Housing
Sharon Clark
Central Jersey Housing Resource
Center
Harold Colton-Max
Jewish Community Housing Corpo-
ration of Metropolitan NJ
Adam Gordon, Esq.
Fair Share Housing Center
Randall M. Gottesman, P.P.
Community Grants, Planning &
Housing LLC
Mary Beth Lonergan, P.P.
Clarke Caton Hintz
Gail M. Pfister
Robbinsville Township
Frank Piazza, Jr.
Piazza & Associates, Inc.
Beverly M. Riddick
HOMECorp.
Linda Rubenstein
East Brunswick Community Housing
Corporation
Edwin W. Schmierer, Esq.
Mason, Griffin & Pierson, P.C.
Barbara Schoor Community Investment Strategies,
Inc.
Marilyn Ticktin
SERV Properties and Management
Susan Ucci
City of Elizabeth
General Counsel
David A. Weinstein, Esq.
Archer & Greiner, P.C.
Administrator
Karen Cerra
As we are now in the “dog days” of summer and things have
slowed down a little, it can be a good time to take stock. In my case, I
wanted to take stock of who we are as the Affordable Housing Profes-
sionals of New Jersey.
At the time of this writing, we have over 125 members, including
104 individual members and 22 who are members as a result of their
company’s sponsorship of the AHPNJ. Our members comprise a di-
verse group in many respects. The professions represented include
planners, lawyers, consultants, engineers, architects, municipal hous-
ing liaisons and property managers and executives. We work for
nonprofit and for-profit companies as well as governments and hous-
ing authorities. We come from throughout the Garden State from
Northern to Central to Southern New Jersey.
The AHPNJ works to provide a range of services that will meet the
wide range of needs of our members. So far this year, we have held
a seminar on marketing affordable for-sale housing in February in
Bridgewater, a seminar on marketing affordable rental housing in
April in West Orange and a symposium on expiring affordability con-
trols in June in South Iselin (you will learn more about the last two in
other articles in this newsletter). As an attendee at all three of these
events, I can attest that these were not passive sessions but dynamic
interactive sessions where our speakers were engaged by an audi-
ence with questions and comments informed by the different per-
spectives and experiences that you brought to the table.
As diverse as we are, we are, of course, bound by our roles as
practitioners in this field we call affordable housing. The AHPNJ
works to represent our mutual interests on issues that affect us all.
The main vehicle for accomplishing this is our Policy Committee, cur-
rently co-chaired by Randy Gottesman and Frank Piazza. The Com-
mittee has worked to engage elected and unelected officials at the
federal and state level and advise our members on issues ranging
from preferences (local, veterans, etc.), utility allowances and in-
come limits for COAH units, deed restrictions on FHA housing and
Continued on page 8.
2013 Board of Directors
Page 2 A Professional Perspective
“At the time of this writing, we have over 125
members…”
AHPNJ 19 Stonerise Drive Lawrenceville, NJ 08648 (609) 310-6070 admin@ahpnj.org www.ahpnj.org
Clarke Caton Hintz is proud to be a sponsor of the Affordable Housing Professionals of New Jersey
(“AHPNJ”).
Clarke Caton Hintz is a 32-member interdisciplinary team of planners, landscape architects, archi-
tects, historic preservationists, G.I.S. technicians and graphic designers. Clarke Caton Hintz is recog-
nized as a leader in affordable housing planning and design. We have been involved in affordable hous-
ing matters from the earliest days of the Mt. Laurel court decisions through today’s affordable housing
upheaval as we await the NJ Supreme Court’s decision on the challenges to the NJ Council on Affordable
Housing’s (COAH’s) third round growth share procedures. We
continue to work with our municipal clients to help protect col-
lected affordable housing trust funds. The firm’s expertise in af-
fordable housing also includes the design of over 3,700 afforda-
ble housing units for our clients.
Under the direction of Philip Caton, PP, FAICP, and Mary Beth Lonergan, PP, AICP, the firm has
worked with more than 40 New Jersey municipalities in the preparation of affordable housing plans and
representation before COAH, and the courts, as experts on housing and planning issues. Our compre-
hensive approach assists towns in meeting their affordable housing obligation with creative strategies
that fit within overall land use policies, minimize municipal costs and avoid overdevelopment. Our com-
prehensive experience in affordable housing has lead to appointments by the New Jersey Superior
Court, where we serve as Special Court Masters in affordable housing Mt. Laurel matters. In this capaci-
ty, we have served in cases involving over 60 municipalities across the state.
Ms. Lonergan, an Associate Partner at Clarke Caton Hintz, is a member of the Board of Directors of
AHPNJ and has participated in AHPNJ seminars to assist those in the affordable housing arena stay cur-
rent on affordable housing planning matters.
Meet Our Featured Sponsor : Clarke Canton Hintz
Page 3 Volume 6, Issue 2
“Clarke Caton Hintz is recognized
as a leader in affordable housing
planning and design.”
AHPNJ 19 Stonerise Drive Lawrenceville, NJ 08648 (609) 310-6070 admin@ahpnj.org www.ahpnj.org
Expiring Affordability Controls on Affordable Housing
This story can fit 150-200 words.
One benefit of using your newsletter as a
promotional tool is that you can reuse
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A great way to add useful content to your
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You can also research articles or find
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ished writing your newsletter, convert it
to a Web site and post it.
In the three decades since the 1983 Mount Laurel II decision, and
subsequent enactment of the Fair Housing Act that established the NJ
Council on Affordable Housing (COAH), about 65,000 new affordable
housing units have been created, and an additional 15,000 substand-
ard housing units have been rehabilitated, throughout New Jersey,
restricted to income-eligible low and moderate income households.
Long-term affordability controls, in the form of deed restrictions and
mortgage liens, insure that this affordable housing, often developed
at significant controversy and cost, remains affordable over time. But
these controls typically eventually expire after six to 30 years, de-
pending on the type of housing, its sponsor, its financing, and public
policy. Rehabilitated housing has shorter terms; new housing has
longer controls. As the end of the controls period approaches, the
affordable housing then becomes at risk of converting to market-rate
housing, unless the controls are extended. Meanwhile, the need for
affordable housing persists.
As these controls have begun to expire on post-Mount Laurel II
affordable housing, the Affordable Housing Professionals of New Jer-
sey recently convened a symposium to demystify the processes of
extending expiring affordability controls, as well as unwinding con-
trols that cannot be extended. This note highlights key points raised
at that discussion.
Expiring affordability controls, sometimes called “expiring use
restrictions,” is an important issue nation-wide, with insights that can
inform the New Jersey experience. For example, as controls began
expiring in the 1980s on federal low interest mortgages for privately-
developed affordable rental housing built in the 1960s, Congress, the
U.S. Department of Housing and Urban Development, and others at-
tempted with mixed success to preserve more than one million af-
Continued on page 9.
Our Grateful Appreciation to:
Page 4 A Professional Perspective
AHPNJ General Counsel
David A. Weinstein, Esq.
Archer & Greiner, P.C.
and AHPNJ Sponsors:
GOLD SPONSORSGOLD SPONSORSGOLD SPONSORS
Archer & Greiner, P.C.
Bisgaier Hoff
Community Grants, Planning &
Housing, LLC
Lewis Chester Associates, Inc.
Moderate Income Management
Company, Inc.
RPM Development
Piazza & Associates, Inc.
SILVER SPONSORSSILVER SPONSORSSILVER SPONSORS
Clarke Caton Hintz
Community Investment
Strategies, Inc.
Ehrlich, Petriello, Gudin &
Plaza, P.C.
Jewish Community Housing
Corporation of Metropolitan
New Jersey
Mason, Griffin & Pierson, P.C.
PNC Bank
AHPNJ 19 Stonerise Drive Lawrenceville, NJ 08648 (609) 310-6070 admin@ahpnj.org www.ahpnj.org
By David Kinsey
David N. Kinsey, FAICP, PP, Kinsey & Hand Planning, Princeton, NJ, is an urban, re-
gional, and environmental planner specializing in affordable housing planning. Since
1998, Kinsey has taught planning as a Visiting Lecturer at the Woodrow Wilson
School of Public and International Affairs at Princeton University. Mr. Kinsey may be
reached at: david@kinseyhand.com
Northern Regional Meeting Discussed New Legislation and Offered Affordable Housing Marketing Strategies
Page 5 Volume 6, Issue 2
AHPNJ 19 Stonerise Drive Lawrenceville, NJ 08648 (609) 310-6070 admin@ahpnj.org www.ahpnj.org
Affordable Housing Professionals of NJ (AHPNJ) held a Northern Regional Meeting on April 11,
2013. Twenty-five members and non-members registered for the event.
The first part of the meeting was spent on networking
and introductions as the participants were welcomed by
AHPNJ President Harold Colton-Max of the Jewish Commu-
nity Housing Corporation of Metropolitan New Jersey.
Frank Piazza of Piazza & Associates provided affordable
housing updates indicating that there was not much move-
ment and we are still waiting for legal opinions from the
courts. He did, however, have new legislative information
to share. The Veterans Preference for Affordable Housing
(S829) was signed into law in January. Mr. Piazza wrote an
extensive article about this bill in the AHPNJ Spring 2013
Newsletter.
Mr. Colton-Max provided information on marketing HUD affordable multi-family rental housing.
He emphasized the importance of knowing your audience and how the end users influence decision
making; knowing your friends/strategic partnerships and knowing your competition to determine
your competitive advantage. Many ideas were shared on advertising and how to understand where
users get their information; thus the need to have a multi-faceted approach to reach your target audi-
ence.
Most participants felt the information they received was valuable to them. Not all information was
relative to all participants. Some participants only dealt with HUD properties and others only COAH
affordable housing. Most came away with ideas that they could implement or tweak.
AHPNJ is also very grateful to the Jewish Federation Plaza apartment building and Harold Colton-
Max who arranged for the meeting to be held in their meeting room. AHPNJ thanks Harold Colton-
Max and Frank Piazza for their time to organize and present at this event.
Frank Piazza (3rd from left) discusses the Vet-
erans’ Preference Bill recently signed into law
as Harold Colton-Max (4th from left) listens.
Gail Pfister is the Municipal Housing Liaison of Robbins-
ville, and serves as a member of the AHPNJ Board.
By Gail Pfister
More than one person in your organiza-tion an AHPNJ member?
AHPNJ offers multiple memberships when you become a Sponsor!
Contact Karen Cerra at admin@ahpnj.org for details.
The East Brunswick Community Housing Corporation
The East Brunswick Community Housing Corporation (EBCHC) is
a private non-profit corporation whose purpose is to provide afforda-
ble housing for low- and very low-income households who would oth-
erwise not be able to secure decent housing in East Brunswick, New
Jersey.
The flexible nature of this non-profit allows for creative solutions
to the affordable housing shortage. Currently, there is a tremendous
need for additional affordable rental housing. The Market to Afforda-
ble Family Rental Program is a method by which inventory is added
without increasing the demands on the infrastructure of the town.
The organization was originally created to manage a 12 unit apart-
ment building that was condemned. While East Brunswick continues
to own this property, EBCHC renovated the property and has been
managing it since 1980. The program later expanded by purchasing
market rate condominiums and renting them at affordable rents to
income eligible families.
EBCHC was the first entity, in 1996, to produce affordable rental
units through a state approved “Buy-Down Program”. These units
are purchased at market rate and made affordable to households
with incomes that average 40% of median. The rents are range from
$650 to $900. Rent is paid by the tenants usually without subsidies or
vouchers.
EBCHC later expanded its role as a provider of affordable hous-
ing by completing construction of four low-income family rental units.
This was done in 1995. EBCHC became the developer and owner.
This property consists of two 3-bedroom units and two 2-bedroom
units.
Continued on page 11.
Welcome New AHPNJ Members!
Page 6 A Professional Perspective
Between April 16 and July 22,
2013, the following have become
new AHPNJ members.
Please welcome:
Alan Butvinik
American Security Systems, Inc.
Thomas Collins
Vogel Chait Collins & Schneider
Edwina Cruz
Sterling Properties
Tim Doherty
Project Freedom
Keith Grady
Winchester Gardens
Darlene Green
Maser Consulting
Cathryn Hochkeppel
Borough of Fair Lawn
Meghan Hunscher
Montville Township
David Kinsey
Kinsey & Hand
Elizabeth McKenzie
Elizabeth C. McKenzie, PP, PA
Crystal Moon-Boulware
Capital One Bank
Jane Mowles-Rodriguez
Montville Township
Paul Pogorzelski
Hopewell Township
Valerie Schrek
Rockaway Township
Britnee Timberlake
Essex County CLT
Linda Rubenstein is the Executive Director of the East Brunswick Community
Housing Corporation and serves as a member of the AHPNJ Board.
“The flexible nature of this non-profit allows for creative
solutions to the affordable housing shortage.”
By Linda Rubenstein
AHPNJ 19 Stonerise Drive Lawrenceville, NJ 08648 (609) 310-6070 admin@ahpnj.org www.ahpnj.org
Continued from page 1.
ways to extend and preserve controls. Jean Jacob-
sohn, Piazza & Associates, brought her experience
as a municipal assessor on how to properly handle
the assessments of properties formerly restricted.
She added that purchasers of properties with ex-
pired restrictions will see very sub-
stantial changes in their property
taxes. Gail Pfister, the Municipal
Housing Liaison of Robbinsville,
rounded out the municipal perspec-
tive and offered a real life example
of a program where controls are ex-
tended on a voluntary basis. Sharon
Clark, the Executive Director of
Central Jersey Housing Resource
Center, familiarized the audience with the process
that is utilized to extend controls for sales units
through the adoption of a municipal resolution.
David Kinsey from Kinsey and Hand concluded
what was heard. He added that controls estab-
lished in the first two decades of Mount Laurel are
about to expire and offered key lessons learned
and observations on likely future issues and op-
tions. (Mr. Kinsey wrote more about this topic on
page 4.)
The first all-day AHPNJ educational event was a
success in more than one way. The topics dis-
cussed were not only timely and pertinent, but the
event also gave the AHPNJ the opportunity to show
the non-members in attendance who we are and
the services we provide. It so happens that there
were more non-members who attended than mem-
bers and for many this was their first interaction
with AHPNJ. They liked what they saw and there
was an increase in membership stemming from this
symposium. Obviously, there is a desire for the
type of information and for the services AHPNJ of-
fers. AHPNJ was able to secure approval of Plan-
ning Continuing Education Credits, and also Legal
Continuing Education Credits, yet another signifi-
cant benefit for many who attended.
The AHPNJ is grateful to the speakers who of-
fered their time and the information
they shared at the event. The AHPNJ
thanks the hard work of the AHPNJ
Program Committee and Policy Com-
mittee members, including Sharon
Clark, Gail Pfister, Randy Gottesman
and Frank Piazza, who designed and
organized the event. Lastly, AHPNJ
would like to thank AHPNJ member
Sandy Bonnell from Pike Run II for
providing the location and catering.
Thank you to all who attended and we hope to
see you at the next event.
June 18 Symposium Continued
Page 7 Volume 6, Issue 2
A full house at the Symposium.
Please Welcome AHPNJ’s
Newest Silver Sponsor:
Jewish Community Housing Corp.
of Metropolitan New Jersey
AHPNJ 19 Stonerise Drive Lawrenceville, NJ 08648 (609) 310-6070 admin@ahpnj.org www.ahpnj.org
Given the smashing success of
our statewide symposium, we are
sad to report that Affordable
Housing Professionals of New
Jersey Board Member Sharon
Clark will be stepping down as
Co-Chair of the Program Com-
mittee. During Sharon’s tenure
(which started in April 2011), the
AHPNJ had a consistent run of six
(6) quality educational seminars for our members
on a variety of subjects of importance to our mem-
bers and others, ranging from marketing for-sale
housing to refinancing multifamily apartment build-
ings. At our events, Sharon found ways to raise vi-
tal resources for the AHPNJ through event sponsor-
ships and even a first-ever auction at our festive
Holiday Party last December.
However, we are glad that Sharon has agreed to
continue to assist new Program Committee Chair
Gail Pfister with whom Sharon has been serving as
Co-Chair for the past six months. If you are inter-
ested in joining the Program Committee and help-
ing to design and hold more seminars and other
events, please contact AHPNJ Administrator Karen
Cerra at info@ahpnj.org.
Thank You, Sharon Clark!
President’s Message Continued
Continued from page 2.
more.
To grow the capacity of our current (and future)
members, our Education Committee, under the
firm guidance of co-chairs Diane Clapp and Susan
Ucci, is working with Rutgers to move forward with
a professional certification curriculum for afforda-
ble housing practitioners. With a mix of courses on
subjects like the history of affordable housing and
income certification, this curriculum will convey
what should be common knowledge as well as spe-
cialized knowledge to inform those working in par-
ticular areas in our field.
The Policy and Education Committees are just
two of many that undertake the work of AHPNJ. The
events that I described earlier were also the result
of the work of the Program Committee, co-chaired
for the first half of the year by Sharon Clark and
Gail Pfister. There are a range of other committees
from Finance to By-Laws to Membership. If you
would be interested in getting involved on one of
those committees, please contact me at
haroldc@jchcorp.org or Karen Cerra, our Adminis-
trator, at info@ahpnj.org.
The AHPNJ’s work is overseen by a 15-member
Board of Directors (a list of the members can be
found on page 2). The Board meets every other
month throughout the year, including an Annual
Meeting in October and a Meeting/Holiday Party
held in December. If you are interested in serving
on the Board of Directors, you can feel free to let us
know that as well.
I hope that you and your residents (or other cli-
ents) have a cool summer. I look forward to seeing
you at our Annual Meeting in October if not before.
Page 8 A Professional Perspective
Do you have an idea for an article for the
next newsletter? Please contact Karen Cer-
ra at admin@ahpnj.org.
AHPNJ 19 Stonerise Drive Lawrenceville, NJ 08648 (609) 310-6070 admin@ahpnj.org www.ahpnj.org
Continued from page 4.
-fordable units at risk. Also, rental affordable hous-
ing financed by federal Low Income Housing Tax
Credits since 1986 initially required only a 15 year
term of controls, later extended by Congress in
1989 to 30 years, and now encouraged to be in ef-
fect for 45 years in New Jersey, but required to be
50 years and more in some states. To extend con-
trols and preserve affordable housing, many states,
including New Jersey, reserve some of their annual
allocation of Tax Credits for preservation projects
that provide for needed rehabilitation
with an extended period of afforda-
bility controls.
The length in years and the condi-
tions associated with affordability
controls have evolved in New Jersey
since the early 1980s. Before COAH
was firmly established, Mount Laurel
trial courts and municipalities experi-
mented in fashioning affordability
controls. Then followed several
waves of standardizing rules adopted
by COAH, the Department of Community Affairs
(DCA), and the New Jersey Housing and Mortgage
Finance Agency (HMFA). During COAH’s First
Round (1987-1993), the term was at least 20 years
for both ownership and rental affordable housing,
with little administrative oversight. During COAH’s
Second Round (1993-1999), the term changed to a
maximum of 30 years for both ownership and rental
affordable housing. In 2004, HMFA, in cooperation
with COAH and DCA, adopted uniform Housing
Affordability Controls rules (UHAC) applicable to
all three agencies, which prescribed controls for at
least 30 years for both post-2004 ownership and
rental affordable units.
Options for extending controls also evolved.
COAH’s First Round rules and standard restrictive
covenant required the first seller, after the end of
the controls period on ownership units, to offer the
unit at a restricted sales price to the municipality,
DCA, or a non-profit, before either: (a) selling the
unit to another income-qualified household at a re-
stricted price, which would begin a new 20 year
controls period, or (b) exercising a repayment op-
tion, such that the ownership unit could be sold at
market price after the 20 year controls expired,
provided 95% of the difference between the re-
stricted and market prices was
recaptured by (paid to) the
municipality to be used for af-
fordable housing and 5% re-
tained by the seller. Or, a mu-
nicipality could simply extend
the term of controls by resolu-
tion, even without notice to the
homeowner. Controls on rent-
al units lapsed upon expiration
of controls, under the First
Round rules. The 2004 UHAC
rules changed the recapture provision to the
amount of subsidy that the buyer received at the
time of the initial purchase of the unit. UHAC rules
also, significantly, authorized municipalities to ex-
tend the term of controls on both ownership and
rental affordable housing, beyond the initial 30
years, unilaterally by ordinance, essentially in per-
petuity.
COAH’s first iteration of Third Round rules,
adopted in 2004, created an incentive for munici-
palities to take stock of their affordable units at risk
of conversion. COAH offered credits against mu-
nicipal post-1999 fair share housing obligations for
existing post-1980 affordable units with controls
scheduled to expire during 1999-2018 whose con-
Continued on page 10.
Expiring Affordability Controls Continued
Page 9 Volume 6, Issue 2
AHPNJ 19 Stonerise Drive Lawrenceville, NJ 08648 (609) 310-6070 admin@ahpnj.org www.ahpnj.org
David Kinsey speaks as (l-r) Gail Pfister,
Jean Jacobsohn, Randy Gottesman and Ed
Schmierer listen.
Continued from page 9.
-trols were extended by at least 30 years. This rule, upheld by the Appellate Division in 2007, prompt-
ed municipalities to pursue both voluntary and involuntary approaches to extending affordability con-
trols in two successive waves of Third Round housing elements and fair share plans prepared in the
2000s. Approximately 35 municipalities that have petitioned COAH in its Third Round have proposed
extending controls on an estimated 3,000 affordable units, according to COAH staff.
Under the voluntary approach, a municipality identifies eligible affordable ownership units with
controls scheduled to expire, offers a consideration to the homeowner, typically $10,000 per unit, and
if accepted, creates and records a new deed restriction that extends the controls for at least 30 years,
and distributes the funds to participating homeowners.
Under the involuntary approach, the munici-
pality exercises its right to extend unilaterally
controls on ownership units with standard COAH
First or Second Round deed restrictions by
merely adopting a resolution and recording the
new deed restriction.
Both approaches have different financial, political, and practical considerations that should be
weighed by a municipality before embarking on a program to extend expiring controls.
Extending controls on privately owned, pre-2004 multifamily rental affordable housing is more
challenging, because the involuntary approach is not an option for municipalities. Instead, municipali-
ties must negotiate with private developer-owners and typically pay for extended terms. Municipali-
ties can also fruitfully engage with nonprofit developer-owners to preserve affordable housing oppor-
tunities.
When controls on rental affordable units do expire, municipalities, through their designated
“administrative agent(s),” must carefully unwind the controls, paying close attention to the interests of
both tenants and the rental property owners. For example, rents could double when controls are lift-
ed, but income-qualified tenants could also remain as tenants for years, with their units continuing to
be affordable. Municipal tax assessors should also be involved in the process, because as rental units
become market-rate a property’s net income will increase, which increases its value and proper as-
sessment.
Expiring affordability controls are a significant opportunity for municipalities to preserve needed
affordable housing, but extending controls requires diligence, initiative, attention to detail, and sensi-
tivity to the diverse interests of homeowners, tenants, and rental property owners. Financial resources
may be required as well, which could be drawn from municipal affordable housing trust funds, provid-
ed extending controls is included in a municipal “spending plan” approved by COAH.
Continued on page 12.
Expiring Affordability Controls Continued
Page 10 A Professional Perspective
“When controls on rental affordable units do expire, mu-
nicipalities, through their designated “administrative
agent(s),” must carefully unwind the controls, paying
close attention to the interests of both tenants and the
rental property owners. “
AHPNJ 19 Stonerise Drive Lawrenceville, NJ 08648 (609) 310-6070 admin@ahpnj.org www.ahpnj.org
Continued from page 6.
Funding for EBCHC projects comes from a vari-
ety of sources which include the Federal HOME
Partnership Program (administered through Mid-
dlesex County Housing and Community Develop-
ment), the Federal Home Loan Bank’s Affordable
Housing Program, NJDCA Balanced Housing Pro-
gram and the East Brunswick’s Affordable Housing
Trust Fund. Mortgages have also been obtained by
EBCHC. In addition, EBCHC has made equity in-
vestments from operating profits. All of the Corpo-
ration’s operating expenses are covered by rental
revenue. No Township funds go into the operation
of EBCHC or maintenance of the properties. East
Brunswick Township generously provides PILOT
and or tax abatements for EBCHC properties.
It was understood when EBCHC was created
that the Township would provide staff support since
EBCHC was leasing and managing Township prop-
erty. Thus the Housing Specialist serves as Execu-
tive Director of the Corporation. EBCHC makes
payments to the Township annually for the Housing
Specialist’s services. Additionally, all of the units
created and managed by EBCHC assist the Town-
ship in meeting its affordable housing obligation.
Other affordable units in town have been created
for purchase through inclusionary development.
EBCHC produces units which contribute to East
Brunswick’s affordable housing obligation.
EBCHC is governed by a 15 member volunteer
board of trustees, each serving a two year term.
East Brunswick Community Housing Corporation
currently owns and operates 60 low income rental
units. Tenants are selected randomly, by lottery,
each time an appropriate unit becomes available.
Income restrictions apply and applicant’s finances
are carefully evaluated. Tenants are income certi-
fied annually.
Current plans include acquiring up 6 additional
market rate units through 2015. The rent will be
affordable to families making less than 40% of me-
dian income. EBCHC will continue to manage,
maintain and improve their current properties and
assist their tenants in order to make their tenancies
successful.
EBCHC has also facilitated the production of
group homes in East Brunswick. Acquisition assis-
tance is made available at closing to qualifying non
-profit developers of supportive and special needs
housing. These contributions are later reimbursed
to EBCHC by the Affordable Housing Trust Fund.
EBCHC has provided educational programs
and information for their own tenants as well as for
the public on topics such as energy efficiency and
utility payment assistance, first time home buying,
tax preparation assistance and other community
services available to qualifying participants. EB-
CHC advocates on behalf of affordable housing
and our low income tenants by promoting our pro-
gram and serving as a model for a well-blended,
welcoming community.
For additional info, contact Linda Rubenstein,
Executive Director at 732-390- 6870 or
linda.rubenstein@eastbrunswick.org.
Market to Affordable Housing Continued
Page 11 Volume 6, Issue 2
AHPNJ 19 Stonerise Drive Lawrenceville, NJ 08648 (609) 310-6070 admin@ahpnj.org www.ahpnj.org
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Continued from page 10.
How significant is the extent of the challenge and opportunity of expiring controls on the 65,000 af-
fordable units created in New Jersey since the early 1980s? Unfortunately, without a state-wide database
of affordable units with the terms of their affordability controls, if any, and the anticipated expiration
dates of controls, it is impossible to address this issue systematically. COAH’s offer of a second credit for
extending controls on existing affordable units prompted only some municipalities to seek to extend
controls on affordable housing. By contrast, California requires all municipalities to identify and analyze
assisted housing units at risk of conversion to market rate over the next 10 years and provide a plan for
addressing those at risk over the next five years, as part of the mandated housing element of the local
general plan (master plan). Amending the housing element requirements in New Jersey’s Municipal
Land Use Law and the Fair Housing Act to require similar analyses and planning would focus more and
systematic attention on the risks and opportunities of expiring affordability controls. Expiring controls is
a challenge, but it is a nice problem to have, a testament to the significant production of affordable hous-
ing in New Jersey under the Mount Laurel doctrine. 1For an excellent exposition of this issue, see Alan Mallach, “Preserving Affordable Housing” (Chapter 10), A Decent Home: Plan-
ning, building, and Preserving Affordable Housing. Chicago: Planners Press, 2009. 2 Lawrence Geller, “Expiring Use Restrictions: Their Impact and Enforceability,” 24 New Eng. L. Rev. 155 (1989). 3 N.J.A.C. 5:92-12.1 et seq. 4 N.J.A.C. 5:93-9.1 et seq. 5 N.J.A.C. 5:80-26.1 et seq. The COAH Third Round rules (1999-2018) merely required compliance with and referenced UHAC; see N.J.A.C. 5:97-9.1. 6 This note merely highlights selected aspects of New Jersey affordability controls. The actual rules, recorded deed restrictions, and any applicable municipal ordinances must be consulted before analyzing the controls on any specific property with affordable housing. 7 N.J.A.C. 5:97-6.14. Initially adopted in 2004 at N.J.A.C. 5:94-4.16. 8 For the details of the required analysis and planning, see California Department of Housing and Community Development Hous-ing Element, Identification and Analysis of Developments At-Risk of Conversion. http://www.hcd.ca.gov/hpd/housing_element2/EHN_atrisk.php - Requisite_Analysis 9 N.J.S.A. 40:55D-28.b.(3). 10 N.J.S.A. 52:27D-310.
Save the Date!
The AHPNJ Annual Meeting
October 23, 2013
Details coming soon!
19 Stonerise Drive
Lawrenceville, NJ 08648
Phone: (609) 310-6070
E-mail: admin@ahpnj.org
Website: www.ahpnj.org
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