Colts Neck committee extends affordability controls on 14 units at The Grand, securing housing credits

The Colts Neck Township Committee voted Sept. 24 to authorize an extension of affordability controls on 14 rental units at The Grand, a preservation move officials said will yield 21 credits toward the township’s round‑four affordable‑housing obligation. The resolution passed after discussion and a roll‑call vote in which the mayor recused.

Committee members framed the agreement as a negotiated preservation strategy that avoids new development and associated municipal impacts. Officials said the deal converts 14 rental units to extended restricted status under recently enacted state rules (referred to in the meeting as A4S50), which carry a 1.5 credit multiplier for rental units; with other owner‑occupied units the town expects an initial 23 credits tied to the property, officials said.

According to the presentation to the committee, The Grand has 88 dwelling units: 66 owner‑occupied and 22 rental units. The township negotiators reached an agreement with the current investor to preserve 14 of the rental units for round‑four credit, while eight rental units will remain market rate and migrate to market rate as qualified tenants vacate. Officials said the township will pay a lump sum of $470,000 drawn from an existing 2009 bond ordinance to buy down rents over a 30‑year term; the committee indicated the pilot payment will be given in whole to the Colts Neck Board of Education and estimated it raises the school district’s revenue by roughly 15 percent, with an approximate $12,000 annual payment to the board cited in discussion.

Committee members said the preservation transaction reduces pressure for new development by producing credits that count against builders’ obligations; one presenter calculated that preserving 23 credits early in the round could avoid plans for roughly 115 potential new housing units that otherwise could be proposed on developable sites. The governing body also noted it is tracking expenditures from developer trust funds and acknowledged pending appeals involving prior rounds; one speaker said the township will pursue reimbursement from the court if the appeal of prior round accounting is successful.

Public comment during the meeting included questions from owners at The Grand about how the township will communicate unit‑specific information and the price formulas used if the town exercises its right of first refusal. A condo owner asked whether a contact person would be available to answer owner questions; the committee said unit‑specific letters explaining restricted maximum prices and contact information will be sent within a week or two. Residents also raised objections lodged by Fair Share Housing Center and two developers to the township’s round‑four plan; committee members said those written objections trigger a statutory period for negotiation and, if unresolved, referral to the program established under the new state law.

The resolution was moved and seconded and carried on a roll call. Deputy Mayor Viola and other members voted yes; the mayor recused from the vote because of a stated conflict of interest. Committee members emphasized the measure preserves affordable units without new construction and is part of a larger town strategy to meet state housing obligations.

Votes at a glance - Ordinance 2025‑21 (LOAP cost‑of‑living adjustments for emergency services volunteers): adopted (roll‑call; two members abstained citing fire‑department affiliation). - Resolution 2025‑163 (extend affordability controls on 14 units at The Grand): adopted (mayor recused). - Resolution 2025‑164 (request county name Colts Neck Circle the "Lilian G. Bur Memorial Circle"): adopted (unanimous). - Consent agenda Resolutions 2025‑165 through 2025‑168: adopted collectively.

What’s next Officials said the township’s affordable‑housing planner will present informally to the planning board on Oct. 14 to explain how the newly preserved credits affect Colts Neck’s round‑four housing element. The committee also said it will mail tailored documentation to affected unit owners describing restricted maximum prices and contact information for follow‑up questions.