Deemed a “win-win” situation for both West Windsor and the 16 homeowners in the Walden Woods development, officials are proposing a solution requiring the homeowners to opt in to listing their homes at either market rate or affordable value.
But the proposal raised various questions from members of the Township Council. Could the township even give residents an option? Is there any way to guarantee continuing credit for these homes past a third-round obligation, even when the state Council on Affordable Housing is proposed to be dismantled?
Regardless, the council voted 3-1, with Linda Geevers abstaining and Charles Morgan voting “no” to ask professionals to draft a resolution. The resolution is expected to be drafted and put on the agenda some time in July.
After a nearly two-year process of battling to have affordable housing restrictions removed from their property deeds, the Walden Woods residents received a letter from COAH last month stating it would give West Windsor Township the full number of credits for the homes, but grant the residents 10-year — as opposed to 30-year — affordable housing restrictions, making them eligible now to receive market value for their homes.
“In West Windsor’s third round housing element and fair share plan, the Walden Woods development is included as part of the prior round obligation,” states the letter from Sean Thompson, the acting executive director of COAH. “COAH does not require the deed controls of units fulfilling the prior round obligation extend through the entire third round. As a result, West Windsor may receive prior round credit for the units in the Walden Woods development.”
Walden Woods, on Bear Brook Road, was created in the 1990s through the Operation Bootstrap Program, which was part of the United States Department of Agriculture Mutual Self-Help Housing Program. The program accepted “sweat equity” in lieu of a down payment, eliminating the primary impediment to home ownership for low-income families, up-front cash. Once the homes were built and occupied, they would fall subject to a 10-year affordable housing restriction.
More than 10 years later, according to homeowners’ deeds, the affordable housing restrictions should be lifted, along with all of the other restrictions that came with the program. The township and the state Council on Affordable Housing, however, had debated whether the properties were subjected to the 30-year affordable restrictions until 2028.
Upon receiving the letter, resident Voytek Trela, who with his wife, Caryn, have been serving as the de-facto representatives of their development, asked the township to pass a resolution memorializing the action.
During the June 14 meeting, the proposal was vetted. Business Administrator Robert Hary said he met with Planning attorney Gerald Muller and Tax Assessor Steve Benner and came up with a strategy that would involve sending a letter to all 16 homeowners, asking them if they would like to be converted to market rate units, as stated in the COAH letter, or if they would like to be maintained as an affordable unit under the 30-year restriction.
“The letter would have an estimated amount that they would expect to have to pay in increased property taxes as a result of the conversion to market rate units,” stated Hary in a memo to council. “Residents would sign the letter committing to either option, and their decision would be binding.”
The township would record an instrument setting forth the 30-year restrictions for those who choose that option, said Hary.
“We don’t want to put those people out of their homes, so that’s why my recommendation is that,” explained Hary during the discussion. Opting out of affordable rates would mean that those residents would have to pay taxes on a market rate, which is most likely higher. “This is the fairest way of treating our residents, especially in remembering what they’ve been through.”
Councilwoman Diane Ciccone said she believed giving the residents the option was the fairest way to handle the situation. “We’re not losing our credits for the third round, and we’re merely giving the residents the option to go to market rate,” she said. “I can’t support forcing someone to go to market rate if they don’t want to, or they can’t afford it.”
Geevers, however, said she was surprised at the options. “I thought the letter was very clear in that it was a 10-year deed restriction,” she said. “We would get credit through 2018. It is explicit — I don’t know that there is a choice there.”
In addition, when the matter first became an issue, “we were told they either had to be all market or all affordable, and now, all of a sudden, that has changed.”
However, Township Attorney Michael Herbert said he and Muller reviewed the matter. “We have the option to do it,” he said. “My recommendation is that is the fairest way of handling it. This is a way of allowing each of the homeowners to take their positions.”
Voytek Trela echoed Geevers’ comments. He also had understood there to be an “all or nothing” situation. However, “I think we should be treated as all or nothing when it comes to the original restriction, but in terms of anyone signing on for additional restrictions, that should be an individual choice. I really don’t see a conflict there.”
Because Geevers questioned whether the township had the authority to allow the residents to opt, she abstained on voting to have the administration draft a resolution.
Morgan voted against the proposal for other reasons. He said the situation was not a win-win without assurances from COAH that it will continue to receive credit in addition to the third-round obligations.
The legislature is considering a bill that would abolish COAH, but “we should not assume the legislature is going to pass the bill,” said Morgan. “We can’t assume that even if the legislature passes the bill that the courts won’t strike it down. These residents deserve a fair shake, and I absolutely support them. But we have another 25,000 residents of this town who also deserve a fair shake.”
Morgan suggested the council pass two resolutions: the first to accept the letter from COAH as not only giving the township credit for the third round, but in going forward; the second would be Hary’s proposal on condition the township receives that assurance.
“A win-win includes permanent protection,” said Morgan. “If we find out in three or five years that this is a constitutional issue, we are going to be screwed. We have a sympathetic governor, and we have a sympathetic COAH, and we should be asking for these things now.”
Township attorney Michael Herbert said that even if COAH is dismantled, municipalities’ fair share obligations will not be. “These folks will be in limbo unless you adopt some kind of resolution.”
Morgan also said that the council should take the opportunity to discuss other lingering affordable housing issues, including that the affordable housing restrictions on the Avalon Watch development will also soon expire.
Ciccone suggested dealing with the Walden Woods issue first. “I think we can give some closure to these residents and take up the bigger issue at another time. I don’t want to keep them in limbo.”
Said Herbert: “Right now, we have no protection beyond 2018 no matter what we do, so we don’t lose a thing by adopting this policy. We have no protection beyond the third round.”
“There are many things to speculate about, but here, you have a specific issue that can be resolved,” he added.
Hsueh echoed his statement. “There are always issues we don’t know,” he said. “You’ve got to make a decision based on what you know already. I don’t think it’s fair for this issue to be hanging out there.”
With the council voting to move forward, Council President George Borek asked that the affected residents be contacted when the matter is placed on the agenda.
