Colts Neck reports cut in affordable-housing obligation to 183 units, outlines legal and funding strategy

Deputy Mayor Bazetta told the Township Committee on Jan. 14 that Colts Neck had reduced its outstanding affordable-housing obligation from 239 units to 183 after a mix of deed-restriction extensions and rental credits.

"When you add those numbers up we have reduced our outstanding obligation of 239 by 56 units," Bazetta said, describing payments to extend affordability controls at the Grand and credits for preserved rental units. He said 34 owner-occupied units signed extended deed restrictions at a negotiated $40,000 per unit and that 14 rental units generated 21 credits.

The committee framed those moves as defensive and said they were paired with legal arguments made in mediation. Officials noted three principal defenses: the township's prior durational adjustment for round three, proximity of two proposed high-density sites to Naval Weapons Station Earle (a military influence zone the township says is incompatible with dense residential development), and a deed restriction on the Dutch Lane property that the township says prevents further subdivision.

Bazetta said the mediation judge's rulings remained delayed because of a backlog and that a federal suit seeking to delay a March 15 rezoning deadline was also pending. "There was not a settlement in the mediation; we defended development on those three properties," Bazetta said, adding that the township had placed the Navy's and a congressman's letters into the mediation record where the Navy opposes high-density housing within its influence zone.

Officials also outlined "offensive" strategies to lower the obligation further. They said the township is exploring senior- or group-home projects that could generate modest credits ("10 or 15 credits" was cited) and longer-term work to attract 100% affordable projects, which could eliminate the five-to-one market-rate requirement but would require substantial financing and tax-credit qualifications.

Committee members and the administrator cautioned that building 100% affordable housing is expensive and complex. Bazetta gave a conservative financing example for an 80-unit project under a federal/state tax-credit program that could leave the township underwriting multi-million-dollar gaps for land, septic/package plants and other costs. "If we built an 80-unit affordable development . . . we, the township, are on the hook for roughly $6 million for development," one official said, noting additional acquisition and infrastructure costs could push the total much higher.

Public commentators pressed the committee on several fronts: transparency about prior planning steps and minutes, the choice and cost of outside counsel for affordable-housing matters, the long-term fiscal impact on schools and services, and the safety of sites near the naval base. Multiple residents urged the township to pursue senior or veteran housing and to examine regional or nonprofit partnerships to lower costs.

The committee said it will post mediation decisions and other documents online as they arrive and encouraged residents to contact officials for follow-up briefings. No formal vote on policy changes or rezoning was taken at the meeting; officials said they will return to the council with proposals after further legal and financial work.

The township said it will continue to pursue a combination of preservation, legal defense and targeted development strategies to reduce its net obligation while seeking to limit added demands on schools, roads and public safety.