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New Program Could Help Stunt The Impact Of Foreclosures In Toms River
By Jo Ann La Russo
Toms River Township officials announced a new affordable housing program and foreclosure prevention program that they say would fulfill Toms River's obligation for affordable housing set by the Council on Affordable Housing (COAH).
The proposed program is designed to assist homeowners that are in the foreclosure stage by allowing them to remain in their homes and neighborhoods and keep their children in the schools they are attending.
Mayor Thomas F. Kelaher and the council held a public forum Tuesday to discuss the proposed program.
Representatives of the Toms River Workforce Housing Community and financial and real estate companies were on hand to gain input from the public, along with representatives from Homes for All Inc., and O.C.E.A.N. Inc.
Under the proposed program, money from the township's Affordable Housing Trust Fund would provide a reduction in a homeowner's mortgage. In exchange for the funding, a deed restriction would be placed against the property, explained John F. Russo, Toms River's affordable housing attorney. When the home is sold, the restriction would require it to be sold to another income-qualified family at a price restricted to levels set by the state Council on Affordable Housing.
"This is not a hand out," said Russo, who added that required income level for a family of four is about $70,000.
Russo said the proposed program came about as a result of representatives from the various local affordable housing groups attending many meetings together over the past several months.
The proposed plan would scatter the number of affordable units throughout the township rather than cluster them together.
"Toms River is forming its own affordable housing program because COAH's one size fits all is not working. (Through this plan) we can teach the rest of the state and country how to make affordable housing work," Russo said.
If the town moves ahead with the plan, he added, COAH would have to grant a waiver on rules concerning marketing of affordable housing units.
COAH rules now require that affordable housing units be marketed and a lottery process held for the available units. Under the proposed plan, houses would be reverted into affordable units for the current owners.
The council would need to adopt an ordinance to put the program into effect. Toms River, Brick and Jackson have already filed a lawsuit against COAH, opposing its third round rules.
Council President Gregory P. McGuckin said the program is "the first step in making the creation of affordable housing a positive and beneficial experience for the town, the local affordable housing groups, Toms River residents and the community in general."
Officials said that there is about $2 million in the Affordable Housing Trust Fund. It was contributed by builders, not taxpayers, said Russo.
Councilman John C. Sevastakis, chair for the COAH Committee, said, "The family is able to remain in their home, the children in their schools and the benefit to the community is that we will be able to reduce the record of foreclosures, one home at a time. All of this can be done without using taxpayer money and creating an affordable unit will help solve one of the biggest challenges to local government providing affordable housing."
McGuckin reminded residents at the session that the proposed program is voluntary.
However, many residents are firmly against the idea.
"I don't buy it," said Norma Place resident John Lombardi. "Sounds like a socialistic plan to me."
Residents at the meeting that oppose the plan said that it will bring down the value of the neighboring properties.
Still other residents said the idea is a good one.
"It's a good idea," said Rosemary Goebel. Reverend George Grodberg, executive director Community Compass, Toms River, agreed.
Pastor Michael M. Mazer, East Dover Baptist Church, Toms River, said, "I believe that the proposal to assist Toms River families avoid home foreclosure is a good one. This plan will help the township meet its affordable housing obligations, allow homeowners to keep their current place of residence and will provide at a future time more affordable housing units. While this proposal may help only a few families facing foreclosure, it is a way to help."
Ted Gooding, president O.C.E.A.N.,Inc, a community action group, also addressed the governing body. "Let me clarify that the people qualified for this program are nurses, police officers, teachers and hard working families like you and me. This is not Section 8."
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