Perth Amboy reaches agreement with Cranbury to build 80 units

[Affordable housing deal]

Perth Amboy reaches agreement with Cranbury to build 80 units of affordable housing.

Perth Amboy could build up to 80 units of affordable housing as part of a regional contribution agreement with Cranbury.

The agreement would help the township meet the requirements of the third round of state-mandated affordable housing.

Under regional contribution agreements, a municipality is allowed to transfer up to half of its state-mandated affordable housing obligations to other communities in its region by giving a receiving urban center money to renovate existing affordable housing or build new units.

Cranbury would pay Perth Amboy approximately $2.8 million spread out over four annual payments of $700,000 to cover the cost of building or rehabilitating affordable housing units.

The township's affordable housing consultant, Mary Beth Lonergan, estimated that Cranbury will have to plan for 160 income-restricted units, through building in the township or through a regional contribution agreement.

Cranbury's obligation for the third round won't be announced by the Council on Affordable Housing until 2006. The third round housing requirements will cover the time period 2004 to 2015.

(more...)