Holmdel Approves Affordable Housing Plan
- Kin Gee
- Dec 20, 2018
- 5 min read
Dec. 20, 2018 - In a well attended Township Committee meeting (standing room only) on Tuesday night, Holmdel unveiled the latest affordable housing plan.
The good news is that the new affordable unit obligation was reduced from 110 to 93 from the August 2017 settlement agreement. More significantly, the total number of new units (affordable units & market rate units combined) was reduced from 454 units to 207 units.
How did this happen? The Township and Fair Share Housing Center had reached an agreement in August 2017. However, the judge was not agreeable to this settlement and, in a “mediation process” in December 2017, helped to negotiate a reduction in the number of affordable housing units. In addition, Holmdel has agreed to a township-sponsored “non-inclusionary” 50-unit development at the Middle Road property that enabled 100% of the units there to be affordable housing units. This combined with the removable of a previous “low affordable set aside” project on Route 35 helped to significantly reduce the total number of new units.
However, at least for residents living in Palmer Square, the bad news is that not only is the development on Palmer Avenue still on the table but the total number of units increased from 50 to 60. Palmer Ave has had chronic flooding problems, including street closings over the years. The professional planner indicated she didn’t think the flooding problems will be exacerbated despite the fact that the plan calls for 60 units to be built.
Finally, the North Beers Street property also made the cut to be included in the plan. By some accounts, this site appears to be well-suited for development to include affordable housing. The current plan calls for a total of 97 units (including 31 affordable units) and a 20,000 square foot medical office.
At the August 2017 Township Committee meeting, the last affordable housing settlement agreement was approved as part of the consent agenda. As with most consent agenda, there was no presentation and no specific opportunity for public comments other than during the general public comment period after voting has taken place.
At Tuesday’s meeting, the revised affordable housing plan was a separate agenda item and included a presentation by the attorney and professional planner that represent Holmdel. In addition, Deputy Mayor Greg Buontempo (as the presiding official) and the Committee allowed public comments (and there were many) before the voting on the agenda item.
This a welcome change for transparency and public input.
Many concerned residents queued up to make public comments about the plan. Among them were Robert Gengerke, current President, and Jim Licato, past President, of the Palmer Square Home Owners Association (“HOA”). Both expressed astonishment that property on Palmer Ave is back in the mix given the history of chronic flooding problems.
In particular, Jim Licato mentioned that an application for a 50-unit development was voted down by the Holmdel Planning Board just two years ago. Mr. Licato indicated that the then Planning Board Member Eric Hinds said that he (Hinds) didn’t think this is the right place to put the project and asked the question why are we putting the project at that location. The 50-unit project was voted down two years ago due to flooding concerns, but now a new proposal with 20% more units is back.
Finally, Mr. Licato stated that the Township Committee has put the cart before the horse by allowing this project before a regional solution to the chronic flooding problem could be developed.
Mr. Gengerke mentioned that the previous 50-unit plan resulted in a 331-foot long building, making it the largest building in Holmdel, bigger than Costco or Dearborn. The project will consist of 3-story building over a garage, effectively making this a very large 4-story building. Mr. Gengerke asked the Township Committee the question whether they see a building of this size, especially squeezed into “a sliver of land”, anywhere else in Holmdel and proceeded to answer no.
Mr Gengerk emphasized that he and other Palmer Square residents are not against affordable housing but rather the fact that the size of the property does not support the total number of units being proposed. He indicated that he would be supportive if, for example, the project is reduced to 30 units with more affordable housing units.
One of the more dramatic moments of the night occurred after resident Pradeep Jhanjee had raised the issue of Mayor Critelli’s recusal and the appearance of a conflict of interest.
The concerns raised related to the fact that Mayor Critelli had, for a period of about a year while the current litigation was active, a financial interest in the North Beers Street property. He has since divested that interest.
The affordable housing settlement agreement includes a provision that states: “No member, official or employee of the Township shall have any direct or indirect interest in this Settlement Agreement, nor participates in any decision relating to the Agreement which is prohibited by law, absent the need to invoke the rule of necessity.”
This provision has two separate and distinct parts. Mayor Critelli has now recused himself from the Township Committee decision. However, as voiced by several residents, Mayor Critelli continues to have the appearance if not an actual indirect interest since his longtime business partner (and co-owner of their development company) has a financial interest in the North Beers Street property.
In response to the comments by Mr. Jhanjee, Committeeman Rocco Pascucci said that if anybody on the Township Committee “makes money off this deal or has influence for their own benefit, they should go to jail”. Mr. Pascucci went on to say that he is not a cop and not a prosecutor, just a Township Committeeman who has to make the best decision under the circumstances as required by law.
After public comments were made, the affordable housing settlement agreement as presented was approved by a vote of 3-1, with Committeemen Hinds, Nikolis and Pascucci all voted “YES” and Deputy Mayor Buontempo voted “NO” citing he needs more time to consider.
If the judge approves the settlement agreement after the Fairness Hearing, then a number of action steps will be triggered. This includes changes to the zoning ordinances, planning board filings, etc.
Statements and suggestions were made at the meeting that there will be future opportunities for further public comment and input when these future action steps are triggered. However, Jennifer Beahm, the professional planner helping the township, made the point that the changes to the zoning ordinances to allow these affordable housing projects were statutorily required.
She emphasized that the town doesn’t really have a choice and it is technically not a waiver of any zoning ordinances. So, effectively, while some minor tweaks and changes can probably be made, the reality is that the required changes in ordinances are pretty much “baked-in” pursuant the settlement agreement and, effectively, there is very little opportunity for further changes if the agreement is approved by the judge regardless of public input or outcry.
The next step will be for a Fairness Hearing by the judge. This is expected to be around the end of February or March 2019. The Township Committee agreed to let residents know of the date for the Fairness Hearing. Holmdel attorney Andy Bayer indicated that residents may submit written “position” on the plan and, if a written position was submitted, the judge may consider oral presentation as well.
All in all, this was a very exciting Township Committee meeting. Thanks to the incredible efforts of Scott Goldstein, you can watch the meeting in its entirety on YouTube (see link below):
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