Millstone frets over COAH obligation
Town hopes for court to render obligation flawed
BY JANE MEGGITT Staff Writer

MILLSTONE — There will be no reprieve for municipalities across the state that struggled to come up with new affordable housing plans by the end of 2008.

Although an extension of the Dec. 31 deadline for municipalities to submit their plans to fulfill new Council on Affordable Housing (COAH) obligations was rumored, it did not happen.

Mayor Nancy Grbelja said she was disappointed but not surprised that COAH did not grant an extension.

"We are dealing with a state agency that forced municipalities to initially submit plans [in 2007] that were based on rules and regulations that they were in the process of changing and knew the submitted plans were a waste of time and taxpayer money," she said. "The rules and regulations continue to be modified as time goes on."

The New Jersey Supreme Court and the state Legislature recognized and mandated via the Mount Laurel II Supreme Court decision and the Fair Housing Act that each municipality in the state has an affirmative obligation to facilitate the prompt provision of affordable housing in their community. Millstone's 1987-99 COAH obligation was 62 units, which was accomplished by creating 16 new units in town that received a bonus credit of 32 units and 46 units through a Regional Contribution Agreement (RCA) with Asbury Park. The latter development cost the township $20,000 per unit for a total of $920,000.

In 2006, COAH rules changed. The RCA costs increased to $35,000 per unit and 50 percent of the township's total obligation had to remain within the municipality. There were additional restrictions on senior housing, group homes, rental and bonus units.

In 2007, the township formed a COAH Work Group (CWG). The group planned for 70 units, including 35 RCAs going to Asbury Park. Seven properties, including some owned by the township, were identified to meet the third-round obligation. The township also executed an agreement with the MCHA to assist in the area of affordable housing. In conjunction with the MCHA, the township can purchase properties with state grants and/or collect developer's fees.

In 2008, COAH issued changes that included altering the ratio of affordable units from one in every eight market rate units to one in every four and from one affordable unit for every 25 jobs to one in every 16 jobs. The changes also decreased age-limited housing from 50 percent to 25 percent.

In May, Grbelja met with state Sen. Joseph Doria and Assemblywoman Caroline Casagrande regarding COAH. In July, the township joined the League of Municipalities lawsuit challenging COAH, and also joined a suit with Clinton Township and 16 other municipalities challenging COAH.

At the end of August, COAH updated regulations and confirmed the municipality's new obligation of 172 units. Under the new COAH rules, RCAs are no longer permitted and all units must be built in town.

The township's COAH Work Group met with a the Bergen Mills/Route 33 developer in September and reviewed plans for a proposed commercial project with 86 COAH units, which would credit the township with 129 units at no cost, but would require a gray/black pipe cyclet enclosed wastewater system. The plan met with opposition from township residents, but officials submitted it to the state to meet the COAH deadline.

According to Grbelja, the only hope that Millstone has for avoiding development on the Route 33 site to satisfy the obligation is that a court of law will review the data used to determine the township's obligation and render it flawed.

"There are many problems with the entire process and perhaps the court system can send the drafters back to the drawing board for a more reasonable and responsible plan that will provide affordable housing without breaking the backs of the taxpayers," she said.

Former Mayor Evan Maltz, who lives in the Indian Point subdivision near the proposed Route 33 site of 85 COAH units and a sewage treatment plant, was also not surprised that the state did not grant a deadline extension.

"This unfortunately is the norm for our state government and one of the reasons taxes are out of control in the Garden State," he said. "Our state government continues to be reactive and not proactive, which causes many issues such as this COAH issue to be reworked after they require an initial filing, which costs taxpayers huge sums of money."

Maltz said the third round COAH mandate has been a moving target, as the state continued to change its mandated unit numbers until late summer.

"In addition to changing the unit requirements, the state changed how towns can meet these requirements by eliminating things like regional contributions and revising the amount of senior housing that can be used to meet the new mandate," he said. "On top of the late and unreasonable changes, the state has failed to study their own state master plan and map, which would help them come up with reasonable unit requirements."

Maltz alleged that the state can't look at development in Millstone over the last 10 years and develop a COAH mandate based on thinking that the same amount of development will take place over the next 10 years.

"The state missed several key issues when determining the COAH requirements for our town, such as the changing of zoning to 10 acres and the lack of public sewer and water," Maltz said. "If you look at the housing development numbers since the zoning change you will see that the amount of homes built since the 10-acre zoning was put in place has been reduced by approximately 80 percent."

Maltz also pointed out that the state classifies Millstone as environmentally sensitive, but neglected to study the effect the required centers of COAH development would have on the town's environment.

"In towns like Millstone these centers will require sewerage treatment plants, which will affect the drinking water supplies for many people in our town and throughout our state," Maltz said.

Maltz also took issue with taxpayers having to pay for the town to develop and file a COAH plan and having to shoulder the financial burden of participating in a legal action against COAH's new rules.