West Orange safeguards Affordable Housing Trust Fund dollars

The West Orange Town Council will be considering two resolutions tonight, which represent the township’s efforts to meet an affordable housing court mandate with a significant background story. Resolution 119-13 adopts the rules and regulations for the Emergency Repairs and Energy Efficiency Program and Resolution 118-13, which extends a not to exceed amount of $200,000 to the Daughters of Israel Jewish Federation Plaza apartment building for emergency repairs. The source of funds is the Township of West Orange’s Affordable Housing Trust Fund (AHTF), which is funded by a developer’s fee independent of property tax dollars.  

West Orange adopted a development fee ordinance in 1992 and has since collected about 6 million dollars, spent about 3.9 million, leaving a balance of about 2.08 million. In addition to the emergency repairs/energy efficiency program, the AHTF is also the funding mechanism for a housing rehabilitation program, a special needs housing partnership, and an affordability assistance program.

The genesis of these initiatives can be traced back to a 1975 lawsuit that was debated before the New Jersey State Supreme Court. In Southern Burlington County N.A.A.C.P. v. Mount Laurel Township, the plaintiffs successfully argued that the municipality used zoning powers to deny the availability of low and moderate income housing. Under the court’s ruling; municipalities where found to hold a responsibility to create a realistic opportunity for the production of housing affordable to low and moderate income households.

From 1975 to 1985, New Jersey courts faced a litigious environment stemming from the controversy behind the decision and the unclear direction as to how the obligation should be met.  It wasn’t until 1985, that through the passage of the Fair Housing Act, the New Jersey State Legislature finally cemented a municipality’s responsibility by creating the Council on Affordable Housing (COAH).

COAH was directed and promulgated several sets of regulations which required municipalities to create an affordable housing trust fund to be financed through the creation of a developer fee, and guidelines requiring the adoption of a local spending plan.

In 2008, Governor Jon Corzine reacting to large local unspent balances signed a law requiring municipalities to expend or commit their balances within four years. COAH seemingly ignored this mandate and failed to adopt regulations defining how a municipality was to commit expenditures. This lack of COAH guidance coupled with a struggling real estate market created mass confusion as to how affordable housing dollars should be committed. In 2012, seizing an opportunity for an additional infusion of revenue into the State budget, Governor Chris Christie attempted to capture an estimated $160 million in local dollars. Yesterday, the appellate courts granted a stay allowing municipalities 30 days to contest the State’s forfeitures.

The West Orange Town Council and administration has been proactive in safeguarding local trust fund dollars. The two aforementioned resolutions are examples of creative programs that meet the intent of the Fair Housing Act of 1985 and COAH obligations. Most recently, the Town Council increased the grant eligibility of our housing rehabilitation program from $20,000 to $35,000 per eligible homeowner and signed a memorandum of agreement with the Special Needs Housing Partnership extended $250,000 dollars towards housing for individuals with development disabilities.

As taxpayers you may agree or disagree with the original Court ruling, however we can all agree that local property taxes should not be extended or raised to meet these obligations. In West Orange, we can be assured that our municipality is mindful of both our mandated obligations and the State’s recent attempts to raid these funds.

More information about the Township of West Orange affordable housing programs can be found on our town website. http://westorange.org/index.aspx?NID=254

If you wish to view our Council meetings online, they are available the Friday following the meeting date on also on our website http://westorange.org/index.aspx?NID=98

For any comments or feedback, i can be reached at Vcirilo@westorange.org or by visting my website www.victorcirilo.com. My twitter handle is @CouncilmnCirilo.