Assuming COAH Approves

By The Franklin Lakes Journal

Published: November 28, 2008

Towns in New Jersey are only responsible for building affordable housing in relation to the actual growth that occurs; therefore only needing to build affordable housing when building market rate housing and commercial development. Franklin Lakes, like the rest of the country, is seeing its share of foreclosures and the value of existing homes decrease with over 120 on the market now. The pressure of providing affordable housing has waned, but the state’s requirements for submitting plans continues with the same restrictions.

The state-wide displeasure with COAH was one of the main forces behind the collective booing of state Treasurer David Rousseau at a recent convention of the New Jersey State League of Municipalities in Atlantic City.
Community Affairs Commissioner Joseph Doria, who heads COAH’s implementation for the state, repeated at the same meeting that the state is open to adjusting the new housing obligation numbers on a case-by-case basis. He is reported as saying, “The numbers are based on data we can argue about”.  With an increase in income levels for affordable housing, emphasis is being placed on housing targeting teachers, firefighters, nurses and other workers who cannot live in the municipalities they serve; but this goal appears questionable without a process that directly involves municipalities in the centralized allocation of affordable housing units.

Franklin Lakes COAH plan which will soon go before the borough council for approval offers a well crafted fair housing plan which will most likely suffer an initial rejection by the state. Under the rules that took effect this summer, one-fifth of new development should be set aside as affordable housing. The Franklin Lakes plan follows these standards in providing for 55 units of affordable housing in the third round obligations. As COAH perceives rental units to be a more pragmatic option for those seeking affordable housing, the inclusion of additional rental units in the municipal plan is expected to provide the equivalent credit of 72 units.

The original presentation of the plan to the Franklin Lakes Planning Board was a much more discrete affair than the well publicized town meeting in response to the uproar created over the installment of Brian Nelson as an interim COAH attorney for the town. The public hearing was held by the Planning Board during the course of their regularly scheduled meeting and was announced via an e-blast for those who have signed up with town hall. The hearing offered the first glimpse of a plan that included specifications for assisted living developments, mixed affordable housing & market rate units, and the assignment of land devoted solely to affordable housing rental units.

The plan was developed under a variety of assumptions by both the state and the town, and the lack of a definitive agreement between the two will probably lead to further revisions. The council is assuming credit for reducing an obligation of 503 units down to 72 units, an understanding of the process is required to comprehend that leap. The special town meeting previously devoted to the subject of COAH provided a brief explanation as to how this number was being reduced dramatically. The present plan under consideration assumes that the Franklin Lakes prior efforts in providing affordable housing options has satisfied the majority of its prior round obligations which were almost 400 units; the Total Growth Share Obligation for the municipalities is now 147 units.

There are no guarantees that the state will agree with the town’s interpretation of prior obligations being fulfilled, but if so then the differentiation between 147 and 72 makes the argument for state acceptance more viable. Recent amendments to the COAH regulations will also help the borough make the case for the lower obligation. In response to protests from municipalities and environmental organizations, COAH is being forced to be more sensitive to development in sensitive areas. Again, there is no guarantee that the specific arguments offered by Franklin Lakes will be accepted.

Other issues such has the assumed re-development of properties along Franklin Lakes, and a desire to see some mixed use building of residential and commercial units, face additional obstacles. The present economic situation is one unplanned component, but the state’s inclusion of a 2.5% development fee on commercial building may also have a significant impact. This additional tax to support affordable housing funds is one of several issues raised by municipalities who see the tax as being anti-productive in the development of new business in a state which is losing jobs daily.

Afforable housing units:

18 of 40 rental units for assisted living facility for seniors on Franklin near Commerce.

5 units for special needs housing consisting of five bedrooms in one dwelling.

10 or 11 units out of 50-75 built on a five acre industrial zone on Susquehana.

12 units of all affordable housing to be built on an acre across from borough hall.

8 or 9 units out of 60 based on assumed re-development which may occur on Franklin Avenue.