The Oakland council meeting of July 25th 2012 continued to unveil developments concerning the newly formed Oakland Housing Corporation, Governor Chris Christie’s letter demanding his money, and what’s at risk for Oakland.
What’s at risk for Oakland is $741,565 that the State of New Jersey wants handed over by August 13, 2012. New Jersey issued letters to municipalities from COAH listing the amount they believe is due on August 13th.
The total amount collected in development fees and in-lieu payments in Oakland’s account through mid-July 2008 is $748,679 and the amount of those that are supposed to revert to the state budget general fund is $741,565.
The funds to be seized are based on the 2008 trust balance. A June 2012 review of the balances shows Oakland having a balance of $816,794.
More than 350 towns in NJ have received the letter and, once a court mandated appeal process is defined, but it is expected they will fight the seizure. NJ courts have already ruled that the Christie administration is within its rights to seize the money, but decided that each municipality with funds at risk must be allowed an appeal process. The courts also exemplified a legitimate appeal, and defined a commitment to spend the trust money as one that includes a legally enforceable contract.
While many towns met the July 17, 2012 deadline that was set in 2008 by Governor Corzine, many had spent the last few months scrambling to commit the money through purchases of property or contracts with established non-profits dedicated to building affordable housing. These towns are still on edge as to whether their agreements and/or contracts will weather the appeal process.
Oakland’s situation is more unique, as there exists no contract, only a resolution and affirmation. The last minute creation of the Oakland Housing Corporation, which was pushed by council member Chris Visconti, left no time for the borough to negotiate a signed contract or agreement, and therefore leaves Oakland in a perilous situation.
The Visconti plan was based on Allendale’s creation of a quasi-governmental non-profit which would be responsible for affordable housing. Allendale though has $0 dollars at risk of being seized, and their formation of a non-profit was not a last ditch effort to “commit” the affordable housing trust funds.
An alternative plan, similar to that adopted by scores of municipalities, was presented by The Bergen County Housing Authority. It offered the generally accepted remedy of entering into a contract for the existing non-profit to use the dedicated funds to build affordable housing.
Mayor Schwager expressed concerns with respect to how the borough will respond to the state’s collection letter, and continues to seek advice from borough attorney Brian Chewcaskie who has yet to provide a written legal opinion on the legal standing of Oakland’s COAH plan.
To date, the arguments proferred rest on blaming the state for not providing proper guidance and clearly mandating the definition of “committed funds”. The courts have now offered guidance on what that term means, and the coming weeks will reveal whether Oakland has met the threshold.
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I am very, very angry with my party’s council members. A big question arises in my mind: WHY DID MY PARTY’S COUNCIL MEMBERS not take action on using this money for the last six years? I am ashamed to be called a Republican. The entire council must work together if anything is going to be accomplished in Oakland.
Yes, if Gov. Christie takes back the money, it is the fault of a “do nothing” group of sore losers representing my party. Wake up Mr. Visconti and Pignatelli, you are throwing lots of votes out the window. I’m disgusted with your performances.
Sincerely,
A Very Angry Republican Voter
As a registered Republican I too am thoroughly disgusted with some of those I supported with my vote in past elections. Let this be a warning to the others that I will not let my party affliation influence my vote this November. Republican or not, I’m going to vote for those that want to move this town forward and not sit back and do nothing like some.
Another angry Republican voter.
WOW How did our administration allow this to happen? I really cannot believe that they dropped the ball on this. Its time Mayor Schwager makes her predecessor and the council people who were here before her take responsibility and answer to this.
Its another disgrace I have seen happen here.
I know this may p**s off some democrats and republicans but I rather see Christie take this COAH money away from us then give it to 7 questionable individuals.
Sam, I gotta agree with you on this.
In all fairness, I wouldn’t totally agree with my fellow Sam and say all 7 are questionable, two of them are civilians. I may agree with the other 5 being questionable.
Tax Weary Resident
Gambling should take place in Atlantic City, not in Oakland’s council chambers. Mr. Visconti’s ill-concieved plan is a gamble which will cost us dearly in future taxes. If our town would have accepted the Bergen County Housing Authority’s offer to take over our affordable housing responsibilites, our only costs would have been the $700,000 which Gov. Christie probably will recoup. Now, if that occurs, our attorney fees will cost us dearly in tax dollars and, if we succeed, more tax dollars will be required for administration and operation expenses. The latter will never cease. Remeber the thousands of tax dollars we spent on our library? It seems to me our council has not learned any lesson from their past mistakes.