Entire Town Of Belleville ‘In Need Of Rehab?’ It Could Happen

BELLEVILLE, NJ — A sweeping plan to designate the entire town of Belleville as an “area in need of rehabilitation” took a leap forward at Tuesday’s council meeting.

The proposal would declare every property in Belleville as an area in need of rehabilitation, which would allow the township to offer residents a five-year tax abatement to make improvements to their homes.

The plan has seen stiff opposition from critics, however, who claim that wealthy real estate developers would also be able to take advantage of the tax breaks.

The town council unanimously voted to advance the resolution Tuesday. It will now head to the municipal planning board, which will study the proposal and offer its recommendations to the council, who will then vote on it.

Watch a video of the July 14 council meeting here.

According to Mayor Michael Melham, local officials have faced unfair criticism for allegedly prioritizing tax breaks for real estate developers and not for single-family and two-family homeowners.

The proposed plan would put those allegations to rest – and potentially give Belleville homeowners a break on their property taxes, Melham said.

The mayor said many local residents have put off making much-needed repairs or additions to their homes because they worry they’ll get hit with higher taxes. It’s a reasonable fear, Melham said.

“I’ve always said, it’s a penalty to improve your house – you get slapped for making your house nicer,” Melham charged.

Under the proposed plan, Belleville residents would be able to make a capital investment in their home and defer any tax hike for up to five years, including a zero increase the first year, Melham said.

If it’s approved, the plan would be a “very positive program,” according to Melham. But there’s a catch: properties would have to be designated as areas in need of rehabilitation to be eligible. And that means creating a blanket resolution which gives every Belleville resident the same opportunity.

It’s not a unique idea, he said. Other New Jersey municipalities, including South Orange, Bloomfield and Newark, have also launched similar programs.

According to Melham, who has previously supported the use of payment in lieu of tax (PILOT) agreements in the township, the reason why property taxes continue to rise in Belleville is because there’s been a lack of development over the past 10 years.

“When you don’t develop or build any new ratables in a decade, who’s going to foot that bill?” he questioned. “It’s going to be the taxpayers.”

Melham said the plan wouldn’t apply to new constructions, vacant land or improvements built “on spec.”

Read the full resolution below.

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