City community development staff on Aug. 18 presented a resolution asking the municipal council to amend and forgive outstanding loan obligations on the Fairmount Hotel (2595 Kennedy Boulevard) so the building can access state rehabilitation funds and remain affordable senior housing.

Director Dasia Anderson told the council the property received HOME, Community Development Block Grant (CDBG) and linkage funds decades ago and the note attached to the city mortgage included a balloon repayment that became due when the affordability restriction expired in November 2024. The payment the city could require is $2,000,272.95. Anderson said waiving the repayment would allow the owner to apply to a New Jersey program for buildings with expiring affordability restrictions; if granted, the state would encumber the property for a new 30- to 45-year affordable period.

“Should the city decide not to waive this repayment, that would make the Fairmount Hotel, which is currently affordable senior housing, market rate housing,” Anderson said. Anderson said the owner has applied to the state, and that the financing path depends on allowing the owner to pursue state funds rather than having the city require immediate cash repayment.

Anderson also advised the council that the rehabilitation work will trigger the Uniform Relocation Act and will require a relocation plan for residents during repairs. She said the state (NJHMFA) is expected to manage the rehabilitation and that the city can advocate on behalf of tenants and share contacts for state oversight. Anderson said the city would not have direct program management after the state award but would remain a partner in advocacy and information-sharing.

Council members asked for details about tenant relocation plans and for contact information for the state and owner so the council and residents could follow the schedule. Anderson said she would provide the contact information and noted the plan must address relocation under federal rules.

Ending: The council received the presentation and a draft resolution; members asked questions and requested follow-up documents (contacts and a relocation plan outline). The transcript shows the matter was brought for council consideration but does not record a final vote at the caucus.