Bernards Has Spent Affordable Housing Funds State Wants, Officials Say

As in other municipalities around the state, Bernards Township officials reacted negatively when receiving a recent letter from the state Council on Affordable Housing asking that money in a specially dedicated fund for affordable housing be turned over to the state because it hadn't been spent or specifically budgeted so far.

But Township Administrator Bruce McArthur, discussing the matter with members of the Township Committee on Tuesday, insisted that about $538,000 being eyed by COAH already is earmarked as a contribution for group homes for developmentally disabled adults.

McArthur also said that about $1 million from an affordable housing fund — set up under state guidelines several years ago to require local developers to set aside money for affordable housing projects — also went to help pay for 20 new units at Ridge Oak Senior Housing in downtown Basking Ridge.

That housing, already occupied, was dedicated last Friday at a ceremony attended by U.S. Rep. Leonard Lance (R-Dist. 7) and others, including Township Committeeman John Malay.

"It was a five-year odyssey," Malay said of the project, which already received more than $3.1 million of federal Housing and Urban Development funding. "The units look great," he said.

McArthur said that Bernards Township has fulfilled state affordable housing requirements both past and most recent, and is one of the few municipalities that had a completed and approved "round three" plan on file with the state COAH office.

As such, McArthur said the letter from COAH that had arrived in early May was "kind of out of the blue."

The administrator told the committee on Tuesday that he had prepared a certification to send to the COAH office in Trenton to specify how Bernards Township had allocated its housing funds.

But Township Attorney John Belardo advised McArthur and the Township Committee to sit tight, and wait for what happens next with the courts and COAH.

Belardo noted that on Tuesday the state appellate court had issued an injunction halting COAH's attempt to seize unspent but dedicated fair share housing funds from around the state.

Belardo said the action was brought about by the Fair Share Housing Center, which he said expressed concern that the affordable house funds would end up in the state's general revenue accounts. He said the stay placed on the injunction continues until the matter comes back to court on June 5. Belardo advised the township not to respond to COAH until after that time.

COAH had been dissolved earlier by Gov. Christie, and had not met for a prolonged period before a meeting at the beginning of May.

The council met on May 1 and voted to proceed with the seizure of funds by May 22, Belardo said.

Township Committeewoman Mary Pavlini said the township had sent COAH detailed plans for how the money in the affordable housing fund was to be allocated — and had received no response from the council.

"It's just more outrageous behavior from Trenton," said Township Committeeman Scott Spitzer. He said the plans to seize the affordable housing funds were another example of mismanagement. He added the funding would go toward the state's "drunken-sailor spending."

Ground was broken for Ridge Oak III with the new 20 units in December 2012, and was completed in January, according to information from Ridge Oak.

"We received 188 applications for 20 units of housing — this speaks to an ever growing need for affordable housing," said a fact sheet on the new housing handed out by Ridge Oak.

The non-profit organization now has a total of 308 subsidized housing units off Manchester Drive in Basking Ridge, according to Ridge Oak. The average age of an occupant is 80, with an average income of $19,000 per year, the fact sheet said.