Holmdel Affordable Housing Development Gets Tax Boost From State

HOLMDEL, NJ - A 50-unit affordable housing complex in Holmdel was recently awarded tax credits that will make the project easier to build, according to state officials.

On Wednesday, the Murphy administration announced the award of over $27 million in annual 9 percent federal Low Income Housing Tax Credits (LIHTC), expected to generate over $254 million in private investment to create 21 developments - including one bordering Hazlet - in total valuing over $550 million.

Holmdel Family Apartments, slated to be developed near South Laurel Avenue and Middle Road, will be built by The Walters Group of Haddonfield and consist entirely of affordable housing units. Given the recent award, five of the approved 50 units will now be set aside for individuals and families experiencing homelessness, with an additional two units to be income restricted at 30 percent of the Monmouth County median income.

“This community will add much needed affordable rental supply to the Holmdel Township market area,” the state wrote in a news release.

"With awards in areas such as Holmdel, Princeton, and Saddle River, and a combination of mixed-income and 100% affordable projects, these awards help drive the NJHMFA's goals of deconcentrating poverty and encouraging development in communities of high opportunity."

The project comes as part of a settlement agreement with the Fair Share Housing Center, which sued several New Jersey townships in 2012. The lawsuit claimed that the state did not properly enforce affordable housing requirements in many areas, including several Monmouth municipalities.

A settlement in Holmdel was reached in 2019.

“Holmdel Township is very pleased that this project has received the tax credit award,” Holmdel Township Administrator Cherron Rountree said in an email to Patch.

“It is a significant step toward meeting our affordable housing obligation as per our settlement agreement with Fair Share Housing. Holmdel Family Apartments will create quality, safe, affordable housing in our community.”

As part of the settlement agreement, another affordable housing location will be placed along Palmer Avenue, with a maximum of 48 market-rate rental units and a minimum of 12 affordable housing units. A third site will be a hybrid retail/housing development with 139 market-rate rental units, 31 affordable housing units and 40,0000 square feet of retail space.

The affordable housing project has been deemed controversial due to its location, specifically the parcel on South Laurel Avenue, which boarders neighboring Hazlet Township.

At a July 28 Holmdel Township Committee meeting, Hazlet Mayor Mike Glackin and attorney James Gorman claimed that the 50-unit complex is too close to residential property on Hazlet's Marsand Drive and only feet away from the township border. A letter sent earlier this year from Gorman to Monmouth County Superior Court Judge Linda Grasso Jones, who was slated to review the plans, raised concerns over housing density and alleged negative environmental impact.

“Hazlet's attorney and mayor cited concerns over proper planning area, site suitability, proper notice, parking set back, building set back, building height, easement and disregard for the adjacent Hazlet neighborhood," reads a statement posted to the Hazlet Township website over the summer.

"Several residents also spoke out about the impact of the rezoning to home values, traffic circulation and potential flooding."

Grasso Jones approved the plans during an August compliance hearing.