On August 6, the Maplewood Township Committee approved a financial agreement with 93-95 Tiffany Place Urban Renewal Corporation, as part of a development that provides two affordable apartment units at 95 Tiffany Place in Maplewood.
Per the township, the financial agreement represents Maplewood’s commitment to providing affordable housing — not just through large-scale developments which are required by township code to set aside 20% of their for-sale units and 15% of their for-rent units as affordable units, but also through incremental housing development in an environment where “the creation of affordable housing units is challenging [because] new development is limited.”
The agreement grants a 30-year PILOT — or payment in lieu of taxes — to the property which will be deed restricted for 30 years to rent to “very low income families.” Per the Township, “The PILOT is structured so that the township will collect no less than $7,000 per year in taxes for the first 15 years of the PILOT, followed by regular increases in years 16 to 30 toward full taxation.”
According to a press release from the Township, “The agreement follows seven months of negotiations between the Maplewood Affordable Housing Board, the Township Committee and Sierra House, the East Orange-based, non-profit project sponsor.”
Related: Maplewood Leaders: New Affordable Housing Law Could Mean More Development & Density
Speaking at the meeting, Jeff Scheckner, development director of Sierra House, thanked the committee.
“We are a shelter for homeless young women and women with children. We help young women get on their feet and maintain success through education, case work and a number of other intense services that we provide. We also are big advocates for affordable housing, not only for the young women who graduate from our program, but for others. Young people that may have a job as a dental hygienist or a substitute teacher that make a decent living, but not enough to afford a home on their own.”
“That’s why we are involved with doing whatever we can to create affordable housing. We’ve done this in East Orange. This is the first project that we’ve done in Maplewood, and we’re very happy and grateful that last month we had an open house and I saw many of you from the council and the mayor at that event, to really let you know what we are doing here in Maplewood.”
“We are extremely grateful that you have approved this because with your approval, it makes it feasible for us to allow this development to happen and to be a place where someone can live, that they might not be able to afford the market value. … we hope to have other projects like these perhaps in Maplewood. I know we have some others in the area that we’re considering working with and just making life better for a lot of people that really need the extra help. So, thank you again.”
Related: Maplewood Seeks Developers for Housing with at Least 50% Affordable Units
Kelly Freeman, Co-Founder and Executive Director of Sierra House, also thanked Township leaders: “I would like to express my heartfelt gratitude to the entire township for the consideration of this ordinance. This is a significant step towards ensuring that our community remains inclusive and supportive of residents from all different economic backgrounds. Thank you for the enactment of this ordinance, because it demonstrates the township’s commitment to addressing housing needs of not just Maplewood, but the state of New Jersey, which affordable housing is in high demand.”
93-95 Tiffany Place in Maplewood, NJ
The Maplewood Township Committee voted 5-0 to approve the financial agreement.
Per the press release from the Township of Maplewood:
“This 100% affordable housing project consists of two newly constructed units; one two-bedroom unit and one three-bedroom unit that will be leased to families with very-low incomes, specifically those families earning less than 30% of the area median income. In addition to financial assistance from the township, the project has also received a $920,500 grant from the National Housing Trust Fund through the State of NJ and a $300,000 loan from the Nonprofit Finance Fund.
“The creation of affordable housing units is challenging in municipalities like Maplewood, where new development is limited. Typically, new affordable housing units are created in larger developments, which are required by township code to set aside 20% of their for-sale units and 15% of their for-rent units as affordable units. In addition to the creation of affordable housing through these set asides, and working with 100% affordable projects like 95 Tiffany Place, the Township Committee recently issued a Request for Expression of Interest (RFEI) from developers interested in developing affordable housing. This RFEI intends to attract and encourage smart, scaled development that produces affordable units for those who desperately need them.
“The 95 Tiffany Place project is not feasible without financial assistance from the township, provided in the form of a Payment in Lieu of Taxes (PILOT) financial agreement. In exchange for a 30-year PILOT, the property will be deed restricted for 30 years, during which time the project is only permitted to rent to very low income families. The PILOT is structured so that the township will collect no less than $7,000 per year in taxes for the first 15 years of the PILOT, followed by regular increases in years 16 to 30 toward full taxation.”
