40 years later, N.J. courts, towns still wrestling with ‘affordable’ housing

40 years later, N.J. courts, towns still wrestling with ‘affordable’ housing

Delran is one of a number of municipalities still locked in a court battle over its affordable-housing requirements under the “Mount Laurel Doctrine,” intended to ensure adequate housing for low- and moderate-income New Jerseysans. This home is for sale in the Summerhill development, which contains housing for low- to moderate-income families.

A six-lane highway lined with strip malls cuts through a patchwork of tamed lawns and suburban houses in Delran, where population has sprouted rapidly in recent decades.

The township, which has close to 17,000 residents in about 6,000 housing units, is nearly built out with “less than half a dozen properties” available for multiple new housing units, according to Gary Catrambone, the township council president.

Actually, Delran needs to accommodate more than 700 residences for low- and middle-income New Jerseyans, contends the Fair Share Housing Center, which has sued the township, alleging it is undermining its own ability to fulfill affordable-housing requirements stemming from a series of lawsuits that grew out of the availability of such housing in Mount Laurel.

The dispute has been tense in Delran, with one resident complaining at a public meeting, “Next thing you know they’re going to say, ‘Hey … get out of your house, we got a poor person that wants your house.’ ”

It is a variation of a debate that has played out in hundreds of towns across the state over the Mount Laurel requirements, the subject of decades of New Jersey court cases that required communities to accommodate housing that lower- and middle-income households could afford.

“I don’t think anyone would describe affordable-housing policy in the state in the last 10 years as reasonable or rational,” said Mike Cerra, assistant executive director of the New Jersey State League of Municipalities.

After years without enforcement of those requirements — stalling development of new housing — the New Jersey Supreme Court in a sweeping decision in January ruled that towns had to retroactively act on 16 years of accrued housing needs.

But the court’s ruling didn’t define exactly how many homes each community owed, spurring town-by-town negotiations — and in some cases battles — in communities such as Delran, among the more than 150 municipalities that have not yet settled for varying reasons.

Gary Catrambone is the council president of Delran, which is battling in court over affordable-housing requirements.

In a town where the median income is $90,500, the prospect of hundreds of new housing units for lower-income residents generates fears that include new burdens on schools and increased taxes. Some critics are blunt.

“If you’re a lazy SOB and you don’t want to work, you don’t deserve squat, period,” Bob Gilbert, a Delran resident, told the township council at an August meeting. “Rent, or go find a cave to live in, or … some third world country to go into.”

Housing advocates say the fight in Delran demonstrates the need for the precedent-setting rulings that began when New Jersey’s high court declared the township of Mount Laurel‘s zoning practices unconstitutional in 1975.

“There are hundreds of municipalities in New Jersey that if they could have done nothing to help lower-income households, probably would have done nothing,” said Kevin Walsh, executive director of the Fair Share Housing Center, the Cherry Hill-based nonprofit that pushes municipalities to accommodate affordable housing.

The Mount Laurel decisions have spurred development of 80,000 homes for lower- and middle-income residents across the state, Walsh said, “and there’s a lot of homes that are going to be built over the next decade because of these settlements.”

But Delran’s case also illustrates the complications: It says at most it could squeeze 285 such units in available spaces; just last year, it put the number at 44, and Fair Share says it actually owes 704.

For years, suburban communities were allowed to pay other towns to build qualifying residences for them. Delran, for instance, paid $860,000 to neighboring Burlington City, which pledged to shoulder some of its affordable-housing burden by adding 43 low-income rental units there.

“Ultimately, towns want to meet these obligations and move on,” Cerra said.

At the Delran meeting, officials spelled out the township’s income qualifications, which are based on Burlington County’s average income of $83,000 and “are likely a little higher than you might have expected,” Catrambone told residents. A family of four making $66,550 or less would qualify for housing designated for moderate-income residents; a family of four earning $41,600 or less would qualify as low-income.

To rent or buy income-restricted housing, residents must be certified by the state. Prices are also restricted; affordable units currently listed for sale in Delran range from $72,000 to $124,000. The average home cost in Delran is about $240,000.

Municipalities can meet the Mount Laurel obligations by requiring that developments include affordable housing. The costs of building those units — which often constitute 20 percent of the development — are subsidized by the market-rate housing. Other options include redeveloping existing housing stock, or seeking tax credits for a fully affordable development.

Delran officials say the township has a surplus of unoccupied affordable housing and is unable to find buyers for a number of units. “Clearly, we’ve had an issue with getting people into these units,” Jeffrey Hatcher, the township’s business administrator, said in an interview.

Walsh said affordable properties in Delran likely “would be scooped up quickly” if they were for rent, rather than for sale. “I’m not aware of any other towns that have this issue,” he said.

Catrambone said the township has exceeded its obligations under Mount Laurel, meeting the state’s requirements in the 1980s and 1990s. Most of its affordable housing — 150 for-sale units — is interspersed in two developments in town; the township also has several group homes.

“At the last measure, we were ahead of the game,” Catrambone said in an interview last week.

But the affordable-housing rules that set the requirements for Delran and other municipalities expired in 1999. The New Jersey Council on Affordable Housing, tasked with developing new rules, failed to do so, leading to litigation that lasted years as advocates challenged — and courts invalidated — updated versions.

The agency’s failures led the New Jersey Supreme Court in 2015 to transfer the responsibility to trial courts. Then, in January, it ruled that towns continued to accrue housing obligations from 1999 to 2015. The housing plans now being hashed out in courts and through settlements with Fair Share and developers must cover that period, along with the years through 2025.

About 150 towns have settled, according to Fair Share, committing to build 50,000 units. Others are awaiting a ruling in Mercer County, where a trial considered conflicting calculations of municipal housing obligations from Fair Share and the towns.

Delran contends its issue isn’t affordable housing, but that vacant land is lacking, generally. “It’s about housing, in general,” Catrambone said. “How much room do we have left to build?”

While Delran officials say the township is nearly built out, advocates say housing could be built on land including a former country club on the town border. Other development is planned for the 76-acre parcel.

But Fair Share says Delran is trying to skirt its obligations. It has sued to stop developments that received township approvals  that wouldn’t include affordable housing. Among other arguments, the township counters that Fair Share’s action is too late.

“It doesn’t really seem like an accurate statement that they’re concerned about housing, given that they just approved housing,” Walsh said. While Delran had met earlier obligations, in the intervening years, “they’ve done virtually nothing,” Walsh said.

Catrambone said he couldn’t comment on the litigation. He said the township will comply with the court’s decision on how much housing it owes.

“There’s a number. We don’t know what it is, the court doesn’t know what it is, the people suing us don’t know what it is,” he said. “None of it counts until the court says this is the number. At that point, we’ll meet it.”

 

http://www.philly.com/philly/news/40-years-later-n-j-courts-towns-still-wrestling-with-affordable-housing-20171013.html

 

 

Need for New Residential Apartments Skyrocketing Across the U.S.

Need for New Residential Apartments Skyrocketing Across the U.S.

*The Hermitage Apartment Homes St. Petersburg, Florida

On the heels of the great recession, we began to see a trend, as much of the oversupply of condominiums began to be absorbed into the rental market.  In both primary and secondary urban settings, led chiefly by millennials, rental demand was very strong.

Originally seen as a byproduct of the recession – the ability to rent in desirable areas at very reasonable prices – we saw this as the beginnings of a trend.  We felt that there would be an ongoing need for rental apartments that were more ‘choice’ than ‘necessity.’  While the market for renters-by-need was certainly escalating, so were the renters-by-choice. These are individuals who often had the resource to purchase, and simply chose not to, but chose to rent instead.

Fast forward to today, and a new study by the National Multifamily Housing Council (NMHC) and the National Apartment Association (NAA) has revealed that a variety of factors is impacting demand for new apartments across our nation, and that in short, demand for rental apartments will be skyrocketing for the foreseeable future.

Over the past five years, a record-setting number of new renter households have emerged. To meet demand, the report states that at least 325,000 new apartment homes must be built every year in order to meet this demand.

Developers will need to speed up supply, as only 244,000 apartments were delivered over a four year time-frame, 2012-2016.   The full report can be found at the following link on the WeAreApartments.org site.

In two key states in which our company is currently engaged in development projects, the study notes substantial demand.  In Georgia, as illustrated in the following metrics, apartment household growth is expected to grow more than 30% by 2030, and growth in rentership almost 31% over the same time period.

In Florida, those numbers are even more compelling, with apartment household growth being expected to grow more than 40% by 2030, and growth in rentership more than 41%.

*METRICS FOR APARTMENT DEMAND IN GEORGIA

*METRICS FOR APARTMENT DEMAND IN FLORIDA

*Source: Hoyt Advisory Services; NMHC/NAA; U.S. Census Bureau.; Axiometrics, a RealPage Company

The approach of The Allen Morris Company to this new phenomenon was to focus on delivering apartment projects that offer all the amenities of home ownership, but in a rental scenario. There was a point where those wishing to rent were relegated as housing’s ‘second-class citizens,’ having to settle for apartments that – even though brand new – did not offer many of the amenities or desirable locations of a purchase.

That is rapidly changing! An example for us is the just-opening Hermitage Apartments in St. Petersburg, FL.  The amenities within the facility are amazing, as good as any luxury condo. We even have an art gallery connected with a renowned museum in the lobby.

At our Maitland City Centre mixed-use development in Maitland, Florida, just north of Orlando and well under construction, we will have 220 one- and two-bedroom rental apartments along with 24 live/work units.

Part of an evolving downtown, these apartments will allow both the ‘new’ generation of renters, as well as empty-nesters desirous of living in an urban setting to enjoy easy access to the arts, entertainment and shopping.

At our Star Metals Atlanta development, to be located in the trendy West Midtown neighborhood of Atlanta, this mixed-use community will also include a multi-family residential component to complement an office building directly across the street and retail.

All three of these developments exemplify the new-normal of residential real estate – apartments that offer a broad range of amenities, within extremely desirable neighborhoods.

While the report’s focus was the strong demand through the year 2030, we certainly do not anticipate a ‘hard-stop’ that year.  We believe that we are in a new paradigm in the world of rental apartments, one that will be in existence well beyond 2030.

So to that end, the Allen Morris Company is currently evaluating a number of opportunities across key Sunbelt states that would certainly meet the ever-increasing demands of this new generation of renters.

 

Course Correction: In a State with too many golf courses and not enough houses, Toll Brothers sees money in converting fairways to developments

 

Course correction: In a state with too many golf courses and not enough houses, Toll Brothers sees money in converting fairways to developments

By Mario Marroquin, June 12, 2017 at 3:00 AM

(AARON HOUSTON)

Let’s see: It would seem to make sense for the fairway to become the main road. The cart path could become a sidewalk. The green could be the center of the cul-de-sac. And the clubhouse would make for a perfect community center.

We’re being serious.

After years of building luxury housing units around golf courses, developers are discovering there’s an opportunity to build instead on what used to be a course — or add houses to courses that didn’t have them previously.

The concept of redeveloping golf courses to be housing communities — and, in some cases, only housing communities — isn’t as basic as described above. But it is going on.

Just ask Toll Brothers President Chris Gaffney.

“Generally, in many areas around the country, golf has been struggling,” he said. “When we look around, and the land acquisition guys do their scouting, if they see a golf course that is being underutilized, going out of business, we’ll look at it for an opportunity.”

More than just golf

Repositioning golf courses is only one way in which Toll Brothers intends to stay ahead of the game, President Chris Gaffney said.

Looking into the future, Gaffney said he wants Toll Brothers to find opportunities in municipalities’ affordable housing needs.

“You always need to seek different opportunities,” he said. “The whole affordable housing discussion continues with the Supreme Court of the state pushing things back to the lower courts and counties, from time to time (they) come out with different numbers on the establishment of how many affordables they have to provide in different towns. “That may drive a lot of the demand over the next four or five years.”

In other words, golf going bust could be a boon for housing.

Gaffney said he sees it throughout the country. The demand for golf courses is not what is used to be, he said, leading operators and land owners to seek to get out of the game altogether or find a different use for their land.

And in New Jersey, a state that has too many golf courses and never has enough housing, Gaffney said the possibilities are there as home builders are discovering large areas of land are becoming available.

“Depending on the size, shape, a number of things can happen,” he said.

Perhaps a sand trap can become part of a playground.

•••

At Toll Brothers, the change in demand for golf presents a change in opportunity, Gaffney said.

Toll Brothers, he said, already has repositioned three different golf courses by adding residential units.

“In Middletown, Bamm Hollow was a failed 27-hole golf course that we are presently building on,” Gaffney said. “Shackamaxon in Scotch Planes was a course that had its troubles, but, there, we were lucky enough to work with someone who was purchasing the course itself. We built 55 high-end, active adult carriages in the center of the course. There, the course was preserved.

“Up in Mahwah and Upper Saddle River, there was a course that failed called Apple Ridge Golf Course, and we were successful in purchasing that course as well.”

In Franklin Lakes, the High Mountain Golf Course — now known as the Reserve at Franklin Lakes — is Toll Brothers’ next venture.

“In this instance, we looked at the course, we talked to the sellers and they were done,” Gaffney said. “They wanted to get out of the golf business, things were struggling, so the best thing we could do is sit down with them and put together a deal that would provide some really nice residential housing.”

Gaffney said Toll Brothers has cleared the site already and has begun installing the necessary infrastructure. The company plans to deliver several housing options: 60 of its signature family homes, 3,800 to 5,000 square feet; 55 affordable homes; and 160 carriage homes, ranging from 2,600 to 3,500 square feet.

It also plans to add walking trails and a large clubhouse to the property.

“This particular course wasn’t doing as well as they had previously done, and they decided it was time to get out of the golf business,” Gaffney said. “It was an 18-hole golf course. We’ve cleared the entire site and we’re in the process of installing the necessary improvements that will allow us to house construction: moving dirt, installing the storm water facilities.

“Eventually, the roads will be installed. We’ve set up our sales trailer to open up for sale in the next month or two.”

•••

Toll Brothers is developing various single-family units at what is now called The Reserve at Franklin Lakes, on the site of the former High Mountain Golf Course in Franklin Lakes.

Toll Brothers is developing various single-family units at what is now called The Reserve at Franklin Lakes, on the site of the former High Mountain Golf Course in Franklin Lakes. – (AARON HOUSTON)

Toll Brothers has been involved in golf for almost as long as it has been involved in housing.

The company, which began doing single-family home building in 1967, has been so involved in the industry that it owns and operates nearly a dozen courses across the country through Toll Golf.

“We now own or operate 10 courses around the country and that’s kind of grown and shrunk from time to time as courses move on,” Gaffney said.

The institutional knowledge of the industry helps the company when it looks at land, he said.

“Anytime we’re looking at an opportunity, and in this instance, it’s a golf course, we have folks on staff that really understand the nuances of running golf, especially in the cost side: What it entails to keep a course up and running, what’s the maintenance,” he said. “All of those kinds of things and your kind of look at that in each and every situation.”

Toll Golf President Maurice Darbyshire said the company’s relationship to golf has been changing since the economic downturn.

Despite the economic recovery after 2008, Darbyshire said golf no longer looks the same.

Darbyshire said attendance and golf memberships have returned to the numbers before the “Tiger Boom,” or before 1998. However, he said, significant construction during the “Tiger Boom” (1998-2005) left many markets overbuilt after the crash in 2008.

“I would say New Jersey and New York are probably oversaturated with golf,” he said. “But they’re not that much different than the rest of the country. I was at a meeting not too long ago where they said the idea that another 250-400 golf courses closing would be a good thing for the industry.

“It’s a very competitive market. I would expect closures to outweigh new build for the foreseeable future, for three to five years.”

•••

Darbyshire knows the golf boom is over in New Jersey.

But that’s not the case in other places, he said.

Darbyshire said locations in Florida, California and Arizona are markets where the rise in demand has not been met yet. He helps Toll operate and own courses in Virginia, Colorado, Maryland, North Carolina and Florida.

The reason, he said, is easy to figure out.

“They all have something in common: you can play golf all months out of the year,” he said. “When you get into New England area, your season is pretty short. Having the ability to drive rounds through 12 months out of the year instead of seven is more viable from a business standpoint.”

The future of golf in New Jersey looks different, he said. But there is a future.

Darbyshire said the company will opt to adapt alongside the industry and may even introduce “alternative golf” options to help new or existing assets.

“Topgolf, which is sort of a one-sided, large driving range with targets that allow people to play fun games while they eat and drink,” he said. “That has shown to have some legs. It’s a pretty expensive startup, but once they get up and running, they are pretty successful.”

That’s just one possibility, Darbyshire said.

“If you go to Asia, you see a lot of golf simulation,” he said. “There’s actually a golf simulated tour. There’s some movement toward that, where you can dedicate some space inside clubhouses that will allow you to provide a simulated golf environment that might meet some of the demands as well.

“I think you’ll start to see (developers) invest in those sorts of golf assets in their facilities.”

Mango Capital, Inc. Executes Another Agreement to Secure an Ownership Interest in a Significant Real Estate Project

FAR HILLS, N.J., May 24, 2017 — Mango Capital, Inc. (OTC:  MCAP) announces an agreement for the acquisition of an ownership stake in CBD at Bonnies Landing LLC. Consideration for the purchase consists exclusively of MCAP shares. The investment is expected to yield a positive future income stream.

Bonnie’s Landing will be the location of 1,150 rental apartments.  The 81-acre property is located off of 30th Street between Robinson and Grace Roads in Haines City, Polk County, FL across from the Haines City High School.  The major Orlando area theme parks, including Disney, Universal and Sea World, are all within a 30 minute drive.  The development will be built in four sections with construction expected to commence by the fourth quarter of 2017.

“We are excited to have Mango Capital join us in the ownership of Bonnie’s Landing.  Combing Mango’s strong capital base with our strategic planning expertise, Bonnie’s Landing will be one of the largest, most desirable rental communities between Tampa and Orlando”, said David Waronker, Manager of Desert Mountain Land Holdings LLC. “The construction project is estimated to cost $126.2 million and add 2,700 full time jobs to Polk County, FL.  Impact fees from the project will be over $9 million and a portion of these will help Polk County fund the construction of the new middle and high schools.  Both schools are planned to be built in the neighboring town, Davenport, by the Polk County School Board.”

“This transaction continues our business plan of growing via acquisition of real property using restricted shares in Mango as currency. We have some additional interesting opportunities in the pipeline as well, and are aggressively seeking more purchases to grow our balance sheet and to take Mango mainstream,” stated Mango President Rick Makoujy.

About Mango Capital, Inc.

Mango Capital Inc. is a real estate holding company specializing in acquiring undervalued American land and complimentary operating businesses in promising markets. MCAP recently completed the acquisition of more than 500 real estate properties in Colorado, Arizona, Texas, Arkansas and New Mexico. With a motivated team, Mango will seize the opportunity to efficiently grow Mango into a major domestic land owner. Mango plans to acquire promising real property efficiently utilizing company shares as currency and intends to opportunistically sell properties for cash and/or notes.

For additional information about Mango, contact Jacqueline Palumbo, Communications Director, Mango Capital, Inc., at (845) 270-5792 or Rick@MangoCapitalInc.com.

Please visit our website http://mangocapitalinc.com/

This release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. The matters discussed in this news release involve goals, forecasts, assumptions, risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements.

Zephyrhills council supports naming tennis center after hometown star

Zephyrhills council supports naming tennis center after hometown star

 

 By Robert Napper, Times Correspondent Wednesday, May 10, 2017 10:30am

ZEPHYRHILLS – The City Council has embraced a proposal to name a tennis center planned for construction this fall in memory of Sarah Vande Berg, a former Zephyrhills High School and college tennis standout whose 2015 death in a car wreck stunned  the community.

The city of Zephyrhills is embarking on a plan to construct a $2.1million multi-court center built to U.S. Tennis Association professional standards. Construction  could begin as soon as October.

Plans are to build the center on nearly 5 acres on the south end of Dean Dairy Road at Eiland Boulevard. It would be a partnership between Zephyrhills and the developer of a new subdivision, the District at Abbot’s Square.

City Manag er Steve Spina proposed to the council during a meeting Monday night that the center be named the Sarah Vande Berg Memorial Tennis Center, after the former high school district champion who became a scholarship player on the University of South Carolina Upstate women’s tennis team.

Vande Berg, the daughter of long time city planning director Todd Vande Berg, died in an automobile wreck at the age of 21 as she headed into her senior year of college.

 

 

The council voted unanimously to send the proposed tennis center name to a committee made up of city staffers that will vote on an official recommendation to the council, which is standard procedure under a city resolution that governs the naming of city facilities.

Council members touched on the great loss the community felt after Vande Berg’s death and her incredible talent as a tennis player. They said it was fitting that the tennis center should be named after her.

“In my opinion, this is absolutely fabulous ,” said Council president Alan Knight.

Zephyrhills council supports naming tennis center after hometown star 05/10/17