Restrictive Covenant Poses Problem For Affordable Housing Project

MOORESTOWN, NJ — Sixty-two residents and two businesses that own property near the site in which Pennrose plans to build a four-story apartment complex have been served notice that the developer is looking to have a restrictive covenant invalidated so it can begin work on the project.

The proposed project is part of Moorestown’s solution to fulfilling its affordable housing obligation by 2025. The township approved an agreement with Fair Share Housing Center last month to work with four intervenor developers and three programs to help satisfy its obligation of 337 new affordable housing units by 2025. The township will also engage in overlay zoning to satisfy its unmet need.

The property Pennrose is looking to build on at one time was a large, 61-acre farm, but has since been sub-divided into 47 individual properties, some of which are in Mount Laurel.

The restrictive covenant stipulates that 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. A letter attached to the summons received by the property owners in the area states that they have been named as defendants because they own real property in Moorestown and Mount Laurel that is subject to the restrictive covenant.

In the letter, Pennrose states it is not seeking anything other than the invalidation of the covenant. This includes “any affirmative judgement against any individual defendant.”

“Pennrose is not seeking any monetary judgement against any individual defendants or to compel any defendant to do or not to do any act,” the letter reads.

The law firm that represents Pennrose went on to say they don’t represent the individuals who received the letter, only Pennrose.

“If you have questions related to this lawsuit, you should seek independent legal counsel,” the letter continues. “If you cannot afford an attorney, you may call the Legal Services office in the court where you live or the Legal Services of New Jersey Statewide Hotline at 1-888-LSNJ-LAW (1-888-576-5529) as more fully set forth in the enclosed Summons.”

“Pennrose is trying to modify a deed restriction. This process is being handled in an open and public way, on notice to each property owner, which gives each property owner a chance to respond to it accordingly.
“To ultimately remove the deed restriction, a judge signs an Order permitting the requested relief,” Grant said. “Pennrose must notify everyone that’s impacted by the restriction, as part of the process.”

The attorney representing Pennrose was not available for comment.

The deed restriction has existed since the 1940s, according to a copy of the litigation provided to Moorestown Patch. Pennrose says the restriction was clearly designed to restrict the availability of affordable housing in Moorestown. It also says it violates the constitutional right to affordable housing under the Mount Laurel Doctrine and sound public policy.

“The violation of a constitutional right is sufficient grounds for invalidating a deed restriction,” Pennrose claims in the litigation.

It also claims the covenant has been ignored in some cases, rendering it invalid.

Read more here: Moorestown, Fair Share Housing Reach Settlement In Principle

Patch file photo