Affordable Housing Project Ready for Funds

The executive director of the Madison Housing Authority plans to update the Borough Council at its Monday meeting on plans to remediate and build affordable housing on polluted land known as the Orchard Street Property.

Executive director Louis A. Riccio said the project, which is a joint venture of the Madison Affordable Housing Corporation, Madison Housing Authority and Morris Habitat for Humanity, is at a point where the groups are ready to have the borough release $437,000 from its Affordable Housing Trust Fund for the project.

Environmental cleanup expected be done by end of summer, with construction starting late fall or early spring, Riccio said.

For the project, three homes are to be built at 13, 15 and 17 Strickland Place.

The homes will have three bedrooms and two full bathrooms, and fully conform to the area's zoning laws, Riccio said.

Neighbors of the property, which also is referred to as 22 Orchard Street because the homes are near the intersection of Strickland and Orchard, have been invited to the council meeting, which is scheduled for 8 p.m. in Council Chambers at Hartley Dodge Memorial, Riccio said. An announcement about the project being on the agenda for the meeting was posted on the borough's website, RoseNet.org.

Affordable Housing Trust Fund

Fees paid by developers make up Madison's Affordable Housing Trust Fund, which, as of May 1, had a balance of $452,739, according to the Department of Community Affairs.

The meeting comes at a time when the state that haven't been committed to projects, setting a July 17 deadline. Some towns do not have the trust funds, while others have balances of millions of dollars.

Riccio said the groups spent $250,000 on the land and expect to spend $400,000 for remediation. The project is expected to cost about $1.3 million total and is anticipated to take a year to complete from groundbreaking.

Riccio said he is looking forward to the meeting and to the remediation of the site.

The project description document outlined additional information about who will be eligible for the housing and how the project is being funded. Additional information about the property and its history is available on RoseNet.

According to the description,

The units will be sold through a lottery system to families whose incomes are between $45,000 and $75,000 a year. In addition, the development of this site will eliminate an unsightly, old and underutilized vacant lot and revitalize an otherwise deteriorating property. Residents are expected to be first-time homebuyers.

Each home will be individually metered for utilities and have its own gas fired heating, hot water units as well as have central air conditioning. Each unit will have a range, refrigerator and be totally handicapped adaptable. The building will be totally accessible and the homes will be energy-star efficient. Green or reusable materials will be used whenever feasible.

The Federal Home Loan Bank of New York’s Affordable Housing Program funds will be used to finance some of the construction costs. Additional financing will be provided by the Morris County HOME and Community Development Block Grant Programs, the Borough of Madison Affordable Housing Trust Fund, the Madison Affordable Housing Corporation and Morris Habitat for Humanity.

Due to the current environmental conditions of the site, a site remediation program has been established. This program will assure that before any homes are constructed the site receives a “clean bill of health.” It is anticipated that all clean-up activities will be completed by the end of 2012 and construction of the new homes begun in the spring of 2013.

The total cost of the project is approximately $1,304,237 and it is anticipated to take 12 months to complete from groundbreaking. The City has contributed $437,000 from its Affordable Housing Trust Fund (not taxpayer money) for property acquisition and clean-up to partially satisfy their affordable housing obligation mandated by COAH. The remaining $867,237 will be raised through the collaborative efforts of MAHC and Morris Habitat for Humanity through grants from the county, state NJDEP and HUD. Furthermore, donations of materials and services, and various fundraising events will be provided by MHfH.

The services provided to the project participants include: homeownership education with budget and credit counseling services, education and knowledge of actual building of their home, and the ability to secure a zero interest mortgage loan. Each homeowner will be required to spend 300 hours of “sweat equity” working on the actual construction of their home.

The lead development team members for the Project are: Louis Riccio, Executive Director of Madison Housing Authority & the Madison Affordable Housing Corporation, Blair Schleicher Bravo, Executive Director, Morris Habitat for Humanity, Elizabeth DeCoursey, Director of Operations for MHfH and Douglas Wright, Construction Manager, MHfH.