Avalon Meets Affordable Housing Goal; Obligation Axed to 10, Court Must OK

AVALON – Following years of litigation, some shore communities are reaching settlements with the Fair Share Housing Center (FSHC), a state advocacy group representing those disadvantaged by the lack of affordable housing. 
The latest community to announce a settlement is the Borough of Avalon which had been opposing a calculated obligation of 399 affordable housing units.
The municipality is heavily built-out, and its land values are among the highest in the region.
At its Nov. 21 meeting, Avalon Borough Council heard the terms of the settlement presented by the Planning and Zoning Board Attorney Dean Marcolongo.
The borough’s obligation in the settlement was reduced from 399 units to 10.  A recent announcement in Wildwood Crest that its obligation was reduced from an unrealistically high number to 49 fits a pattern where the FSHC is acknowledging that the island communities in the county do not have the land or the flexibility to meet obligations that would require hundreds of affordable housing units.
Marcolongo was clear in his assessment. “This is the best deal you are going to get,” he said. “The borough has no choice,” he said, adding that failure to act would mean that “the courts will impose a housing program on you.”
Marcolongo noted as well that Stone Harbor was considering a very similar settlement.
The deal comes with some additional requirements. The borough will have to establish an overlay in its B1 business district to accommodate the obligation through new construction or rehabilitation of existing structures.
The borough will establish an incentive program to help attract developers to the project. Subsidies of between $20,000 and $30,000 would be paid to a developer depending upon the housing developed, with a greater subsidy for units for lower-income individuals. 
The properties would be deed restricted for 10 years.
The borough will also commit to marketing the availability of affordable housing, creating a list of eligible and interested persons and families which a developer must then use to fill vacancies.
Finally, the borough will engage in a set-aside program in which any new multifamily housing construction of five or more units must set aside 15 percent of the units for affordable housing if it is a rental project and 20 percent if the units are intended for sale.
At some points in the discussion, it was emphasized that the borough is not talking about Section 8 housing. “These will be individuals who want to live in Avalon but do not have the income necessary to afford homes in the borough,” Council President John McCorristin said.
Section 8 is a rental subsidy program that originated in the Housing Act of 1937. That program involved “project-based” or “tenant-based” vouchers.
The Avalon program, while not Section 8, will be subject to rent caps which Marcolongo estimated might run in the range of $800 to $1,100. 
Marcolongo made the point that this settlement allows the borough “to meet its constitutional mandate in a manageable way, end litigation and put an end to the budget outlays for legal services.”
The settlement must go before Judge Nelson Johnson for a fairness hearing, probably in January or February.
It is expected that it will be unopposed given the agreement among the parties to the settlement.
Once approved by the court, the issue of the borough’s obligation will be settled until 2025 when a new round of calculation will create new future obligations.
Marcolongo also noted that there would be periodic reviews of how the borough was doing in carrying out the terms of the settlement. “We have to make real efforts at implementation,” he said.
The borough will need to designate a liaison or similar position to work with the Planning Board and borough offices on implementation.
To contact Vince Conti, email vconti@cmcherald.com.