Moorestown May Need To Seek Alternative To Proposed Housing Site

MOORESTOWN, NJ - It looks like Moorestown officials will have to find a new spot for 75 affordable housing units that were previously planned for an area near Route 38 following a court decision issued on Monday.

The judge presiding over Pennrose’s lawsuit regarding restrictive covenants at a proposed affordable housing site in Moorestown has denied summary judgement in the case.

Judge Ronald Bookbinder issued his ruling on Monday, March 25, in the case in which the developer has served residents and some businesses that own property near the site that the developer is looking to have a restrictive covenant invalidated so it can begin work on the project.

Summary judgement is when a “moving party,” in this case from both sides, asks the judge to make a determination based on the facts before him without the need to go to trial. Summary judgement was denied for all moving parties in this case.

Pennrose was looking to build a four-story building with 75 units that will help to satisfy the township's affordable housing obligation by 2025. In order to build there, a restrictive covenant that states "no dwelling can be built on less than half an acre of land, and that no dwelling that costs less than $5,000 shall be erected on any lot of ground of said premises" must be lifted.

Property owners in the area were named as defendants because they own real property in Moorestown and Mount Laurel that is subject to the restrictive covenant. Pennrose wasn't seeking any monetary judgement, but residents have spent thousands of dollars in legal fees fighting Pennrose.

The township wasn't named as a party in the suit, but had a vested interest in the outcome. The housing complex would go toward Moorestown’s obligation to build 337 new affordable units by 2025. Read more here: Moorestown Council Approves Deal With Fair Share Housing Center

In his ruling, the judge said Pennrose has not shown that the restrictive covenant prevents the realistic opportunity for the development of affordable housing in the township, according to a copy of the ruling obtained by Patch.

He went on to say that the agreement between the township and the Fair Share Housing Center acknowledges the existence of restrictive covenants on the property and contemplates that the township will provide alternative locations for affordable housing if the restrictive covenants are upheld.

“Moorestown shall provide alternative compliance mechanisms that will provide the number of affordable rental units with the same bedroom and affordability restrictions planned for the Pennrose site,” the judge quoted from the agreement in his decision.

“The restrictive covenant may not prevent the township from developing the required 75 family rental units throughout the township,” the judge wrote. “The deed restriction on its face does not prohibit affordable housing and therefore does not violate public policy.”

He further stipulated that if the township is unable to meet its affordable housing obligations through “alternative compliance mechanisms,” the parties may return to court for further determination as to the validity of the restrictive covenants.

Township officials went into closed session to discuss affordable housing litigation at the beginning of Monday night’s council meeting, although it wasn’t clear what they discussed. Members of council didn’t make a statement regarding their discussions following the closed sessions, but some residents questioned what the next step would be for the township.

“This decision raises a lot of questions about the plan,” Township Solicitor Kevin Aberant said. “The township’s professionals are going to need to take a look at the plan.”

The Planning Board will review the township’s affordable housing plan when it meets on Thursday night, April 4, Aberant said.

Also under consideration will be proposed zoning changes needed to effectuate the overall agreement. Council approved the changes on introduction Monday night.

After review at the Planning Board for consistency, the matter will return to council. On Monday night, officials set the date for the public hearing and final vote for April 29. To view the proposed changes, click here.

See related:
Moorestown Council Calls On Judge To Rule In Pennrose Case
Pennrose Affordable Housing Plan Remains In Limbo Amid Lawsuit