Affordable Housing Project Looks to be Key Issue at Planning Board Meeting

Editor's note: This story previews Tuesday's Planning Board meeting. Click here for coverage of the meeting.

A Lakeside Boulevard affordable housing project gone awry figures to be the hot topic during Tuesday's planning board meeting at borough hall at 7:30.

At the July 14 meeting the board granted Datfer, a Rockaway real estate agency, permission to rent at regular rates one of the five apartments at 42 Lakeside Blvd. it renovated under the state's Council on Affordable Housing standards after Datfer's attorney, Chris Collabella, complained the company was losing money. Datfer didn't know how to charge tenants after the Senate's June vote to end COAH, Collabella said, and thus couldn't rent the apartments.

Originally, the town allowed Datfer to renovate the apartments, which exist above several businesses, under the agreement all would meet COAH regulations, helping Hopatcong move closer to reaching the number of affordable housing units the state said it must attain. The 2008 deal looked like a winning proposition for both sides.

Tonight, it's expected Collabella will ask the board to grant Datfer permission to rent more of the apartments at regular rates. He asked the board to remove the COAH tag from four units on July 14.

Collabella didn't return a phone message seeking comment.

"At the time it seemed like a feasible approach," he said after the last meeting.

"We're in a position now where it looks like Datfer is guessing. We don't know what the guidelines are going to be for affordable housing [with COAH on its way out]."

Colabella seemed somewhat satisfied with the board's previous ruling, but planned to reopen the issue tonight.

"They gave us one and they left the door open, which was OK," he said. "They left the door open for us to come back in the event that he rules and regulations have been changed again."

Board chairman Ken Trumpore was hesitant to grant Datfer relief.

"There's always going to be some soft of affordable housing [standard]," he said. "And we had five affordable housing units that we worked really hard on getting. And I don't just want to let them go."

But Trumpore said he sympathized with Datfer's situation.

"They need some relief," he said. "He can't even rent these units with the way it is with the COAH restrictions when nobody knows what the regulations are from COAH. It's not fair to the property owner. It's not fair to the township. They don't give us a clear set of regulations to work by."

Board member Estelle Klein wanted to give Datfer all the units at regular rates. "We might all be dead" by the time the state reworks its affordable housing regulations, she said.

Collabella said Datfer invested about $500,000 into the project.

"He can rent out now, get some income," Trumpore said. "And if we don't come up with any clear-cut regulations on renting the units, we'll give him relief on that, too. We're not looking to put this guy out of business. We're not looking to make him lose money. We're just trying to come up with our COAH regulations. We had five. Now we have four."

Collabella hoped the town would have less after tonight.

"I think to some degreed [the board] acted fairly," he said. "It was a business proposition originally, and Datfer went into this with their eyes open. But there are economic realities that the board has to consider.

"The board gave us some consideration."