Cape May Officials Again Asked About COAH Funds

CAPE MAY – The inappropriate use of affordable housing trust fund monies in 2020 is an issue that continues to plague Cape May officials over two years later.
Approximately $100,000 of trust fund money was used by then-City Manager Jerry Inderwies Jr. to pay bonuses to six employees, including himself, for work ostensibly done to further affordable housing goals.
The action, discovered by the new city administration in January 2021, was taken without formal City Council approval and, according to the state Department of Community Affairs, is in violation of the city’s court-authorized spending plan for the fund.
The state determined that jurisdiction for dealing with the issue rested with the city. The Cape May County prosecutor determined that his office would not bring criminal charges. This put the matter of recovery of the funds squarely on the city.
What sparked discussion at the April 18 council meeting was a letter from the Taxpayers Association of Cape May, a group representing about 1,000 taxpayer members.
The letter called for full recovery of the funds with interest owed for the period individuals have had possession of the monies. It also called on the city to “pursue a determination and discovery who made the illegal decisions to selectively distribute COAH funds.”
The letter ended by arguing, “Time is of the essence. No more delays or excuses.”
The city’s response was what it has consistently been when confronted with the issue. Solicitor Christopher Gillen-Schwartz typically begins by “taking exception” to any characterization that the city is not doing its best to resolve the matter.
Gillen-Schwartz said he “rejects the contention that the city is not taking the issue seriously.”
In the end, the city’s response came down to what it has been in the past.
Gillen-Schwartz said, “The city is in the process of seeking a resolution.”
The newest member of the council, Maureen McDade, who joined the governing body two years after the controversial use of the funds came to light, added that, as a new member, she has been briefed and that she confirms that the city is working on a resolution.