On August 6, the Maplewood Township Committee approved a financial agreement with the 93-95 Tiffany Place Urban Renewal Corporation as part of a construction project that will provide two affordable housing units at 95 Tiffany Place in Maplewood.

According to the municipality, the financial agreement represents Maplewood’s commitment to providing affordable housing – not only through large-scale construction projects, where municipal ordinance requires 20% of units for sale and 15% of units for rent to be provided as affordable units, but also through incremental housing development in an environment where “creating affordable housing is challenging (because) new development is limited.”

The agreement grants a 30-year PILOT agreement – a payment in lieu of taxes – for the property, which may only be rented to “very low-income families” for 30 years. According to the municipality, “The PILOT agreement is structured so that the municipality will collect no less than $7,000 per year in taxes for the first 15 years of the PILOT agreement, followed by periodic tax increases in years 16 through 30 up to full taxation.”

According to a township press release, “the agreement followed seven months of negotiations between the Maplewood Affordable Housing Board, the township committee and Sierra House, the East Orange-based nonprofit project sponsor.”

Related: Maplewood Leaders: New affordable housing law could mean more development, density

Jeff Scheckner, Sierra House’s development director, thanked the committee in his speech during the meeting.

“We are a shelter for homeless young women and women with children. We help young women get on their feet and stay successful through education, casework and a number of other intensive services that we provide. We are also big advocates of affordable housing, not only for the young women who complete our program, but for others as well. Young people who may have a job as a dental hygienist or a substitute teacher and are making a decent living, but not enough to afford their own home.”

“That’s why we’re doing everything we can to create affordable housing. That’s what we did in East Orange. This is the first project we’ve done in Maplewood and we’re very happy and grateful that we had an open house last month and I saw many of you from the City Council and the Mayor at that event to really show you what we’re doing here in Maplewood.”

“We’re very grateful that you approved this because with your approval it’s possible for us to make this development possible and create a place where people can live who may not be able to afford the market value. … We hope that maybe we’ll have more projects like this in Maplewood. I know there are others in the area that we want to work with to improve the lives of many people who really need this extra help. So thank you again.”

Related: Maplewood seeks developer for housing with at least 50% affordable units

Kelly Freeman, co-founder and executive director of Sierra House, called the community to thank the community: “I want to express my heartfelt gratitude to the entire community for considering this ordinance. This is an important step to ensure that our community continues to include and support residents from all economic backgrounds. Thank you for passing this ordinance as it demonstrates the community’s commitment to meeting the housing needs not only in Maplewood, but throughout the state of New Jersey where affordable housing is in high demand.”

93-95 Tiffany Place in Maplewood, NJ

The Maplewood Township Committee voted 5-0 to approve the financial agreement.

According to a press release from the municipality of Maplewood:

“This 100% affordable housing project consists of two newly constructed units; a two-bedroom unit and a three-bedroom unit that will be rented to very low-income families, specifically those earning less than 30% of the area median income. In addition to financial support from the community, the project has also received a $920,500 grant from the National Housing Trust Fund through the State of New Jersey and a $300,000 loan from the Nonprofit Finance Fund.

“Creating affordable housing is challenging in communities like Maplewood because new development is limited there. Typically, new affordable housing units are created in larger developments that, by municipal code, must reserve 20% of their for-sale units and 15% of their for-rent units as affordable units. In addition to creating affordable housing through these reserved units and working with 100% affordable projects like 95 Tiffany Place, the Township Committee recently issued a Expression of Interest (RFEI) from developers interested in developing affordable housing. This RFEI is designed to attract and encourage smart, scaled development that creates affordable units for those who desperately need them.

“The 95 Tiffany Place project is not feasible without financial support from the community in the form of a PILOT (Payment in Lieu of Taxes) financing agreement. In exchange for a 30-year PILOT agreement, the property will be restricted to ownership for 30 years, during which time the project may only be rented to very low-income families. The PILOT agreement is structured so that the community will collect no less than $7,000 per year in taxes for the first 15 years of the PILOT agreement, followed by regular tax increases in years 16 through 30 until full taxation is achieved.”