Belmar plans for the future

On August 21, 2006, at 7 p.m., the Belmar Planning Board will hold a public hearing on its proposed Fair Housing Plan. To read the draft of the Borough's Fair Housing Plan, click here.

All New Jersey municipalities in New Jersey are now required to adopt a Fair Share Housing Plan. The plan, which must be approved by the New Jersey Council on Affordable Housing ("COAH"), defines each town's obligation to provide affordable housing pursuant to the First, Second and Third Round calculations, and sets forth a plan for satisfying that obligation. Specifically, a municipality’s Fair Share Plan must address its (1) rehabilitation share, (2) any remaining prior round obligation and (3) projected growth share. Prior to this year, the adoption of a Fair Share Housing Plan was optional unless ordered by a Court or COAH. Belmar has never submitted a Fair Share Housing Plan to COAH before this year.

Summary of the Plan

Calculation of the Borough's COAH Obligation

First Round COAH Obligation: Zero Units

Second Round COAH Obligation: 62 Units (the Borough's plan seeks to reduce this total to zero because of the lack of undeveloped land in the Borough.)

Third Round COAH Obligation: 75 Units (This is an estimated total based upon projected growth in the Borough over the next several years. The Third Round formula is also known as "Growth Share" and requires that one affordable housing unit be built for each 8 units of net new market rate housing that is built, and for each 25 jobs created by a commercial development.) This figure will reviewed every three years and adjusted upward and downward depending upon the progress of the Seaport Redevelopment Project and other redevelopment in the Borough.

Third Round Rehabilitation Obligation: 27 Units


Belmar's Plan for Meeting Its Fair Share Obligation

Belmar's Fair Share Housing Plan imposes the obligation to meet the Borough's estimated 75-unit Growth Share on the redevelopers who create this obligation through as a result of their proposed redevelopment.

The Borough is proposing a series of alternative approaches by which redevelopers can satisfy the Growth Share obligations their projects create.

I. Providing Affordable Housing On-Site

Redevelopers can satisfy their Growth Share obligation by providing the required number of units on site as part of their redevelopment project. For example, a developer that builds a project consisting of 8 market-rate residential units could satisfy its Growth Share obligation (1 affordable unit per 8 new market rate units) by including a ninth unit that meets COAH affordability requirements in the project.

II. Making a Contribution In Lieu of Providing an Affordable Housing Unit On-Site

The Borough's proposed plan will allow redevelopers to satisfy their obligation to provide affordable housing by making a contribution in lieu of providing a unit. The Borough estimates that the actual cost of constructing a new housing unit that meets COAH requirements will be $250,000.00. Accordingly, redevelopers will be required to contribute to the Borough's Fair Share Affordable Housing fund $31,250 for each market rate residential unit they construct, or for each commercial space they develop that results in the creation of 25 jobs.

III. Making an In-Kind Contribution of Affordable Housing

Belmar's plan also proposes to allow redevelopers to satisfy the the growth share obligation their projects create by making in-kind contributions of qualified affordable housing units. Such units can be provided through a variety of means. These include the following options:

A. Entering into agreements with owners of existing rental units pursuant to which the landlord will agree, in exchange for a lump sum payment from the redeveloper, to dedidate a rental unit as an affordable housing unit for a period of at least 30 years. The unit will be deed-restricted, and the unit will thereafter be affirmatively marketed in the region to individuals who meet low or moderate income guidelines in accordance with COAH regulations. Additional payments by the redeveloper may also be required to bring the rental unit up to COAH-standards.

B. Making a lump-sum payment to a mortgage company to "buy down" the rate on mortgage for a home buyer who meets the income guidelines for moderate income individuals. The effect of such a buydown is to lower the monthly mortgage payment such that an otherwise unaffordable home becomes affordable to a moderate income family.

C. Entering into agreements with owners of properties that have unheated rear-lot rental units (i.e., summer rentals) pursuant to which the property owner will agree, in exchange for a lump sum payment from the redeveloper, to renovate the unit to bring it up to COAH standards and to restrict the unit as an affordable housing unit for a period of at least 30 years for use by income eligible senior citizens. The unit will be deed-restricted, and the unit will thereafter be affirmatively marketed in the region to senior citizens who meet low or moderate income guidelines in accordance with COAH regulations. The Borough will adopt an Accessory Dwelling Unit ordinance to permit such conversions.

D. Constructing affordable housing units, or buying multiple unit properties on the open market and renovating and reselling them subject to deed-restrictions that will make one or more of the rental units affordable in accordance with COAH regulations.

Rehabilitation Credits

The Borough anticipates that some property owners will be willing to agree to renovate their summer-only rear-lot dwelling units and restrict them for use only by income eligible senior citizens, but will want to reserve the right to choose their own tenants (e.g., a mother-in-law or aunt). These conversions will satisfy the Borough's rehabilitation obligation, but because COAH regulations require that affordable housing units be "affirmatively marketed" in accordance with COAH regulations, they will not reduce the Borough's affordable housing unit obligation.

Ensuring Equity in the Location of Affordable Housing

The Borough's Fair Share Plan contains provisions that will prevent any redeveloper from concentrating affordable housing in any existing residential area of the Borough, or from attempting to satisfy all of its growth share obligation through one category (e.g., income eligible senior housing) of affordable housing.