Township of Mahwah s3

TOWNSHIP OF MAHWAH

HOUSING COMMISSION MEETING

Tuesday, June 17, 2014

The meeting was called to order at 7:35 PM by Chairperson, S. Alderisio, who read the Open Public Meetings Act Statement as prescribed by law. Notice of this meeting was posted on the Township website, in the Township Hall, and filed in the Township Clerk’s office stating that this meeting would be held at the Municipal Offices located at 475 Corporate Drive, Mahwah, New Jersey, on Tuesday, April 15, 2014. The minutes of the meeting shall be available from the Township Clerk, Secretary of the Housing Commission and the Municipal website upon adoption by the Commission.

Salute to the Flag.

Present Commission Members: Mayor Laforet, Mrs. McDonough, Mr. Savino, Mr. Sbarra, Mr. Alderisio, Mr. Donigian (7:50 pm),

Also present: Nylema Nabbie Esq., Gittleman, Muhlstock & Chewcaskie, LLP Kathryn Hagan, Housing Commission Secretary

These minutes are a synopsis of the meeting. A verbatim audio recording is on file at the Affordable Housing Office, 475 Corporate Dr., Mahwah, NJ.

A motion to approve the minutes of May 20, 2014, was made by Mrs. McDonough and seconded by Mr. Savino. All in favor. Motion passed.

PUBLIC PORTION

A motion to open to the public at 7:33 pm was made by Mrs. McDonough and seconded by Mr. Savino.

Mr. Ravi Singh spoke for his mother, Kulwant Kaur (the owner of 403 Poets Way). Mr. Singh has inquired in the past as to the legal implications of creating a Life Estate Trust or Deed for his mother’s affordable housing unit for estate planning purposes. He had been advised by the prior Township Attorney, Andrew Fede, that this could not be done; the reasoning being that units in the program must be owned by a certified individual or family. A Trust would not be qualified under this scenario. Mr. Singh argued that since his mother’s unit has expired from the 25-year restriction and is currently subject to the 95/5 ruling as well as increased association fees, her unit is no longer technically considered an affordable unit. In lieu of Mr. Fede’s response, Mr. Singh was directed by his mother’s attorney to inquire as to the ramifications that may be imposed by the Township should she move forward in establishing a Life Estate Trust or Deed. Mrs. Nabbie stated she did not believe a Trust could be considered a “certified individual” under the UHAC regulations. Her thoughts are that a Life Estate Trust or Deed should not be established prior to the outcome of the pending litigation which is scheduled to be argued before the Judge Thursday, June 19, 2014. The plaintiffs in the lawsuit have asked that the Judge’s decision be applicable to only the named plaintiffs. Therefore, Mrs. Kaur’s unit would continue to fall under the auspices of Ordinance No. 1294 and continue to remain an affordable housing unit.

1 Mr. Joseph Busto of 634 Wyckoff Avenue spoke on behalf of his sister, Magdalena Busto (owner of 436 Poets Way). He inquired of Mrs. Nylema if she had an opportunity to review the Master Deed of Society Hill Village I. Mrs. Nabbie informed Mr. Busto the Association has the right to increase the fees on affordable units after the twenty-five year expiration both in conjunction with the Master Deed and the UHAC regulations. The Board of Directors would need to voluntarily amend the Master Deed. If not, there is little that can be done regarding increased fees. Mr. Busto feels a $10,000 buyback amount is not enough to cover the increased fees for an extended period of time.

A motion was made by Mrs. McDonough and seconded by Mr. Savino to close the public session at 7:52 pm.

MANAGER’S REPORT:

The Trust Fund balance as of 05/31/2014 was $2,371,549.75. The Non-Development Fee account balance as of 05/31/2014 was $351,506.10.

UNFINISHED BUSINESS:

1. THIRD ROUND UPDATE – The Land Use Section of the State Bar Association is formulating comments in response to the Third Round rules. COAH is required to provide numbers to the towns sometime between August and November.

2. TRUST FUND EXPENDITURE – Funding is in place and building is expected to begin in Fall. The United Way will be screening applicants.

NEW BUSINESS:

1. UPDATE ON CLASS ACTION LAWSUIT – Regarding the lawsuit, Mrs. Nabbie reported oral arguments are expected to be presented on Thursday, June 19, 2014. A quick decision is expected to be rendered.

2. EXTENSION OF CONTROLS – The Commission has presented several scenarios to owners regarding lump sum payments in exchange for extended controls. Until the current litigation is resolved, owners are not willing to accept an extension. Mr. Sbarra suggested revisiting the idea of extending controls on existing units after the Third Round numbers are provided. All agreed.

3. STATUS OF UNIT PURCHASES – The closing for the purchase and resale of 421 Poets Way is scheduled for 6/19/2014. The Council passed a Resolution to purchase 740 Pepperidge Road. The Contract has been prepared and sent out to all involved parties for signatures. The closing for 900 Tuliptree is expected between mid-July to early August. 4. MOTION TO PURCHASE 414 POETS WAY – A motion to purchase 414 Poets Way for $90,257 was made by Mrs. McDonough and seconded by Mr. Savino. All in favor. Motion passed. Mrs. Nabbie will prepare a Resolution for Council approval.

5. EXPIRED UNIT RENTALS – Mrs. McDonough and Mrs. Hagan expressed concern regarding the rental of units after affordability controls have expired. Under the guidance of the prior attorney, Mr. Fede, the Office of Affordable Housing informed owners they could rent at market value after the expiration date. Unit owners have a letter in hand stating such. It has been advised recently that the status quo remain in effect until the lawsuit is resolved. Mrs. Hagan and Mrs. McDonough are concerned about the ramification of relaying conflicting information.

Questioning ensued regarding pursuing illegal rentals. Mrs. McDonough replied it is very difficult to pursue illegal rentals without documented evidence to present to a Judge. It can be very difficult to obtain copies of leases. Owners who rent their units are required to provide the management with a copy of the lease; however, when the rental is illegal, they often do not. This presents a problem for the tenants who are unable to utilize the recreational facilities.

Ridge Gardens Condo Association will be issuing a summons to the illegal tenant occupying 914 Tuliptree subject to delinquent maintenance fees. Mahwah will not be named as a defendant.

6. COLLECTION OF DEVELOPMENT FEES – Mr. Alderisio spoke with Mr. Montroy regarding the collection of fees. He was told that until work on the second pod begins, no money needs to be collected for the Stock Exchange building.

The regular meeting was adjourned at 8:20 pm.

The next scheduled meeting of the Housing Commission is Tuesday, July 15, 2014, at 7:30 PM in Room 311 of the Municipal Offices.

Respectfully submitted,

Kathryn Hagan Recording Secretary