Borough Scrutinizes Changes To COAH's Housing Regulations

Candace Braun

While New Jersey's Council on Affordable Housing's (COAH) current plan to change its regulations will affect all 566 municipalities in the state, some towns may be more affected by the changes than others. One of these is Princeton Borough, a municipality that not only has 50 percent of its land tax-exempt, but is also held accountable for any housing that is built by Princeton University for its students.

Under COAH's "third round" policy changes, which were introduced in 2003 and are currently being examined for approval by the state, one affordable housing unit must be provided for every eight market-rate residential units created, and one affordable unit would be required for any new structure that creates 25 new jobs. If approved, the policy would be applied to any new residential development that will be or has been issued a certificate of occupancy after January 1, 2004.

Last week Derek Bridger, the Borough's affordable housing coordinator, and Shirley Bishop, the affordable housing consultant, presented Council with a review of the Borough's residential development that would be scrutinized under the new COAH regulations. According to the consultants, out of the nine projects approved this year, four are unlikely to receive COAH credit. In addition, Palmer Square's 97 luxury townhouses planned for Hulfish North may not receive credit because the developer retains the right to final selection of the tenants and location of the units, said the consultants.

The other projects listed as unlikely to receive COAH credit include the 16 rental units planned for Moore Street, the Waxwood's 34 rental units, the Torrey Lane Project, and the Barsky Homes on Spruce Street.

Last night Council was scheduled to review and approve a letter to COAH containing comments and clarifications that the Borough would like to see remedied before the state passes the new regulations. The meeting was held after Town Topics presstime.

One change that would make a significant difference for the Borough is how University dorm rooms are classified. Under the proposed COAH plan, these would be classified as multi-family apartments; however, the Borough would want these to be classified as hotels and motels, as they are not municipal-owned apartment buildings that can be rented out to Borough residents.

The large amount of development at Princeton University would force the Borough to build many more affordable housing units than they would have to otherwise, said Councilman David Goldfarb: "We would be out millions of dollars if we built the number of affordable housing units that are required."

With $700,000 currently in the Borough's affordable housing trust fund, the money "is not going to go very far," he said.

"That is a concern and a challenge," said Ms. Bishop, adding that Council would have to renegotiate an agreement with the University so that the financial burden wouldn't fall back on them.

Mayor Joe O'Neill said he would want affordable housing to be on a sliding scale based on land values, since most land in the Borough that is used for development is public. He added that one exception is Karen Court, which was developed on land donated to the Borough by the University.

Ms. Bishop said that a sliding scale would be unlikely.

Municipalities have until October 15 to submit comments to the state regarding the COAH regulation approval. If the regulations are passed as is, the Borough will have to reexamine several projects that are currently underway, said Mr. Bridger: "It's a giant jigsaw puzzle that we'll have to juggle until we get it to fit."