A Professional Perspective · Summer Sizzles with the AHPNJ June Symposium A Professional Perspective thOn June 18 , AHPNJ held its first all-day event. The Symposium on Ex-piring

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 [email protected] 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


2013 Board of Directors

Page 2 A Professional Perspective

“At the time of this writing, we have over 125

members…”


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.”


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

content from other marketing materials,

such as press releases, market studies,

and reports.

While your main goal of distributing a

newsletter might be to sell your product

or service, the key to a successful news-

letter is making it useful to your readers.

A great way to add useful content to your

newsletter is to develop and write your

own articles, or include a calendar of

upcoming events or a special offer that

promotes a new product.

You can also research articles or find

“filler” articles by accessing the World

Wide Web. You can write about a variety

of topics but try to keep your articles

short.

Much of the content you put in your

newsletter can also be used for your

Web site. Microsoft Publisher offers a

simple way to convert your newsletter to

a Web publication. So, when you’re fin-

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-


Our Grateful Appreciation to:


AHPNJ General Counsel

David A. Weinstein, Esq.


and AHPNJ Sponsors:

GOLD SPONSORSGOLD SPONSORSGOLD SPONSORS


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


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: [email protected]

Northern Regional Meeting Discussed New Legislation and Offered Affordable Housing Marketing Strategies



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 [email protected] 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.


Welcome New AHPNJ Members!


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


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


A full house at the Symposium.

Please Welcome AHPNJ’s

Newest Silver Sponsor:

Jewish Community Housing Corp.

of Metropolitan New Jersey


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 [email protected].

Thank You, Sharon Clark!

President’s Message Continued


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

[email protected] or Karen Cerra, our Adminis-

trator, at [email protected].

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.


Do you have an idea for an article for the

next newsletter? Please contact Karen Cer-

ra at [email protected].



-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-


Expiring Affordability Controls Continued



David Kinsey speaks as (l-r) Gail Pfister,

Jean Jacobsohn, Randy Gottesman and Ed

Schmierer listen.


-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.


Expiring Affordability Controls Continued


“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. “



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

[email protected].

Market to Affordable Housing Continued



Become an AHPNJ Sponsor!

You or your organization can support AHPNJ through a

variety of sponsorship opportunities. Consider becom-

ing a Platinum, Gold or Silver Sponsor. There are also

opportunities to sponsor AHPNJ Events. Advertise in

the AHPNJ Newsletters. For sponsorship opportunities

and advertisement rates, please contact Karen Cerra,

Administrator, at [email protected].


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: [email protected]

Website: www.ahpnj.org

A H P N J

http://www.hcd.ca.gov/hpd/housing_element2/EHN_atrisk.php#Requisite_Analysis

http://www.hcd.ca.gov/hpd/housing_element2/EHN_atrisk.php#Requisite_Analysis

Documents

A Professional Perspective · Summer Sizzles with the AHPNJ June Symposium A Professional Perspective thOn June 18 , AHPNJ held its first all-day event. The Symposium on Ex-piring