Ocean City Moves on Affordable Housing Pact

OCEAN CITY – A series of ordinance amendments meant to codify Ocean City’s affordable housing agreement are set for a public hearing and final vote Dec. 13 at the City Council meeting, planned for 7 p.m. on the third floor of City Hall, 861 Asbury Ave.
Prompted by members of the public, city officials promised to hold a town hall meeting on affordable housing to explain the city’s position and to get public input.
Introduced in four unanimous votes, the changes will expand the city’s number of affordable housing units, increase the amount charged to developers to help fund affordable housing, and set aside a portion of any new multifamily development for affordable housing.
The changes are part of a settlement agreement between the city and the Fair Share Housing Center, approved over the summer.
New Jersey courts have found that municipalities have an obligation to provide for affordable housing. The state Council on Affordable Housing, or COAH, once oversaw that obligation, but the courts now look to the advocacy organization Fair Share to negotiate and recommend settlements on affordable housing.
One ordinance creates a minimum set aside for affordable housing, which City Attorney Dorothy McCrosson described as a requirement from Fair Share to reach a settlement.
“Ocean City is going to create affordable units, but we can’t come close to building the number of units that Ocean City is obligated to build. So we’re trying to facilitate the construction of affordable units by private developers,” she said.
Another would amend the definition of “municipal uses” in the city’s zoning ordinance to include city-sponsored affordable housing.
A third ordinance amends the city’s fair share housing ordinance while the fourth will increase the city’s residential development fee, to increase the amount from 1 percent to 1.5 percent of the project, for use in the city’s affordable housing trust fund.
City Councilman Anthony Wilson expressed concern over this portion of the ordinances, suggesting it could put too great a burden on developers, but voted with the rest of council to introduce.
Other council members said this would spread the cost of the settlement instead of relying solely on taxpayers.
Two additional ordinances were set for introduction Nov. 29, but were tabled at the request of McCrosson, who said they were not quite ready. She told council the ordinances would likely be back before them.
As included on the agenda, one would have created an overlay zone to increase the density and height limits in duplex zones and allow for multifamily housing, the other would have increased residential density in some business districts.
Taken together, the ordinances represent a significant change in planning in Ocean City. According to city officials, the goal is to meet the city’s affordable housing obligation with units spread out across the city.
In October, City Council approved an agreement with the Ocean City Housing Authority to bond for $1.8 million to fund the expansion of the authority’s Bayview Manor public housing property on West Avenue. That agreement also goes toward Ocean City meeting its affordable housing obligation, although some residents criticized the deal, concerned that the city was taking on too much of the financial responsibility.
On Nov. 29, Dave Breedan, a member of the organization Fairness in Taxes, raised that agreement and other city plans. Speaking at the start of the meeting, Breedan cited a meeting between city officials and FIT representatives on the plans.
“We are excited to work with the city on affordable housing,” he said, but suggested the city should have been more open on the potential cost.
“There is a price tag with that settlement,” he said, stating that the city could end up spending $10 million to $11 million on affordable housing. “That’s a sizable amount of money. From a FIT perspective, that’s unacceptable.”
Breedan and FIT President David Hayes both made reference at the meeting to a city plan to spend $9 million on a former car dealership on Simpson Avenue, plans FIT was able to scuttle with a petition drive.
Breedan said FIT has recommendations to reduce the amount to be spent on affordable housing.
“We firmly believe that the taxpayers of Ocean City should not be obligated to make improvements at the Housing Authority, which is a federally funded agency,” Breedan said. He said the Housing Authority has the ability to bond on its own. “We learned yesterday that they cannot, because their financial condition does not permit it. I’m being kind here, because we really want to work with the city.”
Resident Bill Hartranft said he does not want to hurt seniors or those facing poverty, but criticized the city’s plans.
“I feel like I’m going to be taxed twice; the money I’m giving the federal government to do the things they should be doing and once for the bond. I don’t think that’s right,” he said.
Councilman Bob Barr, who is also president of the Ocean City Housing Authority, agreed that the authority has been in bad shape, but expressed complete confidence in the current staff’s ability to see the authority through the crisis.
He promised to do everything he could to protect taxpayers in Ocean City. He said he’s not happy with the current situation, but the city has to deal with it. Barr also promised to work with Breedan and FIT. 
“You have my commitment that you will be kept in the process. I value your input on this,” he said at the meeting. “The taxpayers have my commitment that we will look into all alternatives, even some you didn’t mention, that will lessen the burden on the taxpayers.”
Councilman Keith Hartzell said the city has few options.
“We’re handcuffed in a very bad way,” he said. “I think people have this thing in their heads that this is negotiable. The regulations are the regulations. What they’re asking for is what they’re asking for.”
He also said those who rely on affordable housing are an important part of the community. “For people to think, in any way, shape or form, that the people who would qualify for this are in any way substandard, they’re probably saying four or five people in every one of their blocks are substandard, in my opinion, unless you’re in a real wealthy neighborhood.”
He also spoke for seniors who rely on affordable housing options, saying he has an obligation to help them.
To contact Bill Barlow, email bbarlow@cmcherald.com.