August 21, 2013 THE VILLADOM TIMES IV • Page 5 Mahwah Purchase of affordable housing units authorized by Frank J. McMahon The Mahwah Township Council has authorized the pur- chase of two affordable housing units on which the Council on Affordable Housing’s controls have expired, or are about to expire. The township’s purchase of these properties will preserve them as affordable housing units. Both units are located in the Society Hill condominium complex. One is located at 1404 Faulkner Court and the other is at 373 Cottonwood Way. Both units will be purchased at the maximum permitted price according to COAH regulations using funds avail- able for this purpose from the township’s affordable hous- ing trust fund, which consists of fees paid by developers in the township. The Faulkner Court unit will be purchased at $102,539 and the Cottonwood Way unit will be purchased at $154,831. The township intends to resell the properties as affordable housing units at those same prices and place the money back in the affordable housing trust fund. The acquisition of affordable housing units on which the affordability controls are expiring was recommended by the township’s housing commission. Authorization for the township to purchase those units is contained in an ordi- nance the Mahwah Council adopted on July 25. The township, the state, or an eligible non-profit orga- nization are permitted to purchase affordable housing units on which the affordability controls have expired within 90 days of the date they are put up for sale. This ordinance is intended to give the township the ability to make those acquisitions on an individual basis in order to continue to make affordable housing units available in Mahwah for qualified persons. The council decided to adopt the ordinance in light of the hundreds of affordable housing units in the township that were purchased many years ago under contracts that required those units to remain affordable housing for a 25- year period. According to the ordinance, the township can acquire each unit as it becomes available for sale and use the money available in its affordable housing trust fund to purchase that unit at the maximum permitted purchase price then applicable under the law. If the township, the state, or an eligible non-profit orga- nization does not buy the units at the price permitted by COAH, the owners of those units would be able to sell those properties at the market value. However, they would only be able to keep the increase in value of the units that COAH has designated for them and they would be required to return the balance of any further increase in value to the township’s affordable housing trust fund. That requirement is based on a 1994 COAH amendment to the section of the state’s administrative code known as the “95/5 Rule,” which states that the owners of affordable housing units must return 95 percent of any amount over and above the COAH established current value of their unit to the township’s affordable housing trust fund while keep- ing just five percent of that amount. When the council adopted the ordinance authorizing the township to purchase these units, one of the affordable housing unit owners, Kathleen Errico of 930 Juniper Way, also in the Society Hill condominium complex, advised the council that recently learning about the 95/5 rule was a shock to her and all her neighbors who own affordable housing units. She said she understood that she would have to pay full tax and assessments on her unit when the afford- able housing controls ended, but she thought she would then be able to sell her unit at market value. Errico said she had consulted an attorney who feels she has a good legal case in this matter and, if the township proceeded with adopting the ordinance, the matter would be decided in court. “The only winners will be the attorneys,” she said, “and it doesn’t have to be like that.” Voicing an opposing view, however, was John Brother- ton, a resident of East Crescent Avenue and former chair- man of the township’s board of adjustment. Brotherton told the council he was on the planning board when low- and moderate-cost housing in the township was approved and that board did not anticipate any profit making from these affordable housing units other than the nominal increases approved by COAH. “The township should do everything possible to retain its affordable housing inventory,” Brotherton said. “If we let it go away we will have to make amends for it in the future.” ‘Knit One...’ seeks members Beginners and advanced knitters are invited to join the monthly knitting circle, Knit One, Drop In, at the Mahwah Public Library at 100 Ridge Road. Crocheters are also wel- come. The group, which is committed to knitting with a purpose, may send finished projects to Save the Children, U.S. troops, or the Center for Food Action. Yarn is provided and instruction is available. Attendees should bring size eight knitting needles. The group meets the second Saturday of the month at 3 p.m. Call (201) 529-READ for details.