Haworth Affordable Housing Plan Under Negotiation

The Schaefer’s Gardens site in Haworth. While the business still operates, it appears residential development there will be part of the borough's 2019 affordable housing settlement. | Staff photo.

BY MICHAEL OLOHAN
OF NORTHERN VALLEY PRESS

HAWORTH, N.J.—The Borough of Haworth’s fair share housing plan submitted in 2015 to Superior Court—which remains in litigation and not yet approved—calls for 85 affordable housing units through 2025, versus a statewide housing advocacy group’s call for 300-plus affordable units in the borough over the same time period.

Based on a recent borough notice, a likely issue appears to be a final resolution of how many total units—of which 20 percent must be affordable—will be approved for a private property owner who
purchased the Schaefer’s Gardens property in 2018.

The borough letter incorrectly states the property was purchased in 2017, according to its former owner.

Schaefer’s Gardens, a 5.65-acre property, is still in operation as a nursery and garden center. The property was sold by former owners, Margaret Heister and Karen Heister, for $1.5 million on May 4, 2018, to Lakeshore Developers, LLC, Rochelle Park.

“I am in business and going to be here for quite a while,” said Margaret Heister Feb. 21, dispelling any rumors the business might close.

Borough’s goal that high-density housing be avoided

“Both [Special Master Michael Bolan] and Fair Share Housing Center (FSHC) have indicated that [Schaefer’s Gardens] is appropriate for multi-family housing with an affordable component,” notes an online letter from the mayor and council to residents.

“It is likely that there will be development on this property and it remains the borough’s goal that a high-density development be avoided,” states the letter, which was posted on Haworth’s website.

A special meeting to discuss affordable housing was called for Feb. 12 by the mayor and council but cancelled due to inclement weather; a new meeting date was not set as of press time.

“The council expects to set a new date for the affordable housing meeting in the near future,” said Haworth Mayor Thomas P. Ference and Councilman Andrew Rosenberg. “Once rescheduled, the information for the new meeting will be disseminated to the public.”

Ference and Rosenberg have declined to comment beyond the initial letter, which said: “These plans will impact the future direction of our town.”

A final calculation for the borough’s affordable housing obligation is currently under negotiation in Superior Court by Borough Attorney Robert Regan, along with representatives of Fair Share Housing Center and counsel for a local owner of the Schaefer’s Gardens property.

Efforts to get details on the status of negotiations were not successful by press time.

41 units on Schaefer’s Gardens

Hoping to avoid high-density development on the Schaefer’s Gardens property, Regan reached out to an attorney for the new owners of Schaefer’s Gardens and was said to reach a tentative proposal for a 41-unit multifamily development, with nine units designated as affordable.

It was uncertain if that proposal would be included as part of the borough’s current affordable housing negotiations, based on the borough’s letter.

The letter provides a summary of the borough’s previous affordable housing obligations and notes that two numbers for affordable housing units being discussed through 2025—Fair Share’s calculation of 307 units and an independent firm’s calculation of 223 units—are not considered acceptable by Haworth.

“The mayor and council strongly believe that these numbers are unacceptable. Borough officials are optimistic that there is a potential for a settlement that will not require such a substantial increase in the borough’s population and housing stock, nor significant changes to existing development patterns or the character of the community,” states the letter.

New Jersey municipalities are mandated to allow for the reasonable creation of affordable housing, and these obligations are often met by a combination of zoning ordinances, set-asides for affordable units in future developments, credits for senior and special needs housing, and “inclusionary developments” that allow developers to construct four market-rate units for one affordable unit, or a 20 percent set-aside of affordable units.

Generally, rental properties set aside 15 percent of units for affordable housing.

Whether the Schaefer’s Gardens proposal for 41 units, including nine affordable units, is approved by the Superior Court is part of negotiations—as is Haworth’s proposed obligation of 85 affordable units here by 2025.

The original affordable housing plan submitted in September 2015, and prepared by Caroline Z. Reiter, a planner with Christopher Statile Consulting Engineers & Planners, Oakland, uses the affordable housing methodology from the second round to calculate the borough’s obligation and a previous Council on Affordable Housing determination that set Haworth’s “realistic development potential” of vacant land for affordable housing at zero.

It also determined that no vacant land is suitable for development.

The zero calculation of vacant land available for development was approved by COAH during previous round negotiations in 1998.

Plan disputes FSHC data

In Haworth’s Fair Share Plan submitted in 2015, the borough planner takes issue with Fair Share Housing Center (FSHC) population projections and regional affordable housing obligations, which the affordable housing advocate based on those projections.

“The 85-unit obligation was compared against Haworth’s Prior Round (1993-1999) obligation of 65 units. The 85 obligation is much closer to the Prior Round obligation than FSHC’s.”

“It represents a more realistic obligation considering the character of Haworth, the borough’s development patterns, its available vacant land, and the state’s realistic population growth,” reads the Fair Share Plan.

The current Round 3 affordable housing obligations span the period 1999-2025, including a so-called “gap period” from 1999-2015 when the Council on Affordable Housing—established by 1985’s Fair Housing Act—was unable to set affordable statewide or local affordable obligations due to lawsuits overturning calculation methods and legislative inaction on the issue.

Proposed affordable units

According to the borough plan, the 85-unit affordable obligation will be satisfied via three measures, including the creation of 18 affordable second-story apartments to be built in the Business Zone, or Zone D.

The plan notes the zoning ordinance would need to be amended for second-story apartments to be permitted.

Total acreage in the Business Zone “exceeds two acres…adding a residential component to the Business Zone represents sound planning and helps to strengthen the existing business area. The concept of a second-floor apartment has recently been approved,” in a December 2014 Zoning Board resolution, states the Plan.

The Plan notes that “a subsidy could be provided from the borough’s [Trust Fund] to property owners to supplement the rental income” from second-story affordable apartments.

In addition, the plan proposes an accessory apartment program for properties fronting on Hardenburgh Avenue and Schraalenburgh Road. It defines “accessory apartments” as a self-contained residential dwelling unit with a kitchen, sanitary facilities, sleeping quarters, and a private entrance, which is created within an existing home or through conversion of an existing accessory structure on site.

“The borough will commit $10,000 per accessory apartment to assist the apartment’s development and installation,” states the Plan, noting the funds will come from the borough’s Affordable Housing Trust Fund.

When the Plan was submitted, it stated $163,787.43 was in the fund. A public records request for the current affordable trust fund balance was submitted by Northern Valley Press.

Moreover, the Spectrum For Living complex, which provides six bedrooms for developmentally disabled adults, will be expanded to add six new bedrooms.

The plan notes trust fund monies “if needed” may be used to assist installation of second-story affordable units in the Business Zone, and as permitted for administrative costs.

“These mechanisms provide a realistic opportunity for the provision of affordable housing using rational and a locally-sensitive methodology,” states the plan adopted Sept. 16, 2015 by Haworth.

“The proposed Fair Share Plan also represents sound planning policies that will not negatively impact the character of Haworth,” concludes the proposal.

Efforts to reach attorneys for the borough, Lakeshore Developers, LLC (owners of Schaefer’s Gardens site), and Fair Share Housing Center were not returned by press time.