Colts Neck offers $40,000 to extend affordability controls as Navy objects to nearby high-density proposals

Colts Neck Township on Oct. 8 outlined a plan to preserve existing affordable housing credits by offering owners a one-time $40,000 payment in return for extending affordability controls on their properties for 30 years, officials said.

The township emphasized the offer is voluntary and advised residents to consult attorneys and tax advisors. "We do not intend to lift the affordability controls," Deputy Mayor Viola said as officials described how the preserve-and-extend approach could meet the town's round-four obligation without new high-density construction.

Why it matters: Colts Neck must meet a state-mandated affordable-housing obligation for July 1, 2025–June 30, 2035. Officials said accepting deed extensions on existing units helps the town avoid new development that would add students, traffic and municipal costs. The committee said preserving 14 rental units at The Grand through a tax agreement yields 21 credits toward that obligation.

Navy objection and developer proposals: Officials reported three objections to the town's plan: the Fair Share Housing Center and two developers. Deputy Mayor Viola named Marchin Associates (Skolari Farm at 68 Obi Road) and Wellspring Stables (an applicant described as seeking "four or 500" units). The committee also disclosed a letter from the Navy advising that high-density housing within the military's 3,000-foot influence/exclusion area is incompatible with base sustainment. "It is a well-thought-out letter," the deputy mayor said; the town said the letter will be posted on the township website and will carry weight in negotiations.

Next steps and mediation: A court-ordered mediation among the township, objectors and their attorneys was scheduled for "this Friday," the committee said, and officials pledged to report back as developments warrant. The committee also said the town has filed or passed financing measures (a bond ordinance) to enable buyouts if necessary and that the aim is generally to exercise right-of-first-refusal only to keep units in the affordable-stock pipeline, then sell them to income-qualified buyers.

Ordinance to preserve 14 rental units: The committee introduced Ordinance 2025-22, a tax-agreement (PILOT) with Grand Condo Portfolio LLC to preserve 14 rental units at The Grand. The ordinance was introduced by title and advanced in roll-call vote with the mayor recusing himself; a public hearing is scheduled for Oct. 29, 2025. Officials said the town will pass PILOT receipts to the Colts Neck Board of Education and not retain township receipts.

Residents asked detailed questions at length during public comment about recapture formulas, timing and legal impacts. Officials repeatedly advised that details (including the town attorney's interpretations of deed covenants and whether state law supersedes covenant language) be resolved through the attorney listed in the notice and through individual legal counsel. "Don't rely on what the neighbor says or what you read on the internet," one committee member said, urging residents to get information from the source.

What was clarified on key points: - Payment timing: officials said the $40,000 would be paid as a lump sum likely early in the new year. - Units covered: the plan discussed 66 owner-occupied restricted units and 14 rental units (the 14 rentals are the subject of the proposed tax agreement). - Term: officials described a 30-year extension for existing deed restrictions; they also said newly built affordable units now carry 45-year deed restrictions under current law.

Public-comment reaction: Residents of The Grand and others expressed concern about deed language, right-of-first-refusal, potential tax changes if homeowners decline the $40,000 offer, and difficulties contacting the attorney named in the township letter. Officials said they would have the attorney and staff follow up individually with residents who reported inconsistent information.

The committee closed public comment and adjourned; the next regular meeting is scheduled for Oct. 29, 2025, at One Veterans Way, Colts Neck.

(Quotes and attributions are drawn from the township meeting transcript of Oct. 8, 2025.)