Affordable housing may be delegated to nonprofit

SOUTH BRUNSWICK - The Township Council is mulling over the possibility of forming a nonprofit corporation to oversee its affordable-housing programs.

During the council's work session on Tuesday, Township Attorney Don Sears said that staff within the municipal government has recommended that the affordable-housing programs be overseen by an independent nonprofit corporation. At the moment, the township offers services that assist people trying to buy or rent homes. Some of the services offered include buy-downs, assistance on down payments and deed restrictions on housing prices.

If formed, the corporation itself would also own units to be used for affordable housing. The corporation would be independent from the township government, but still beholden to it, and would also require the retention of an attorney. The management would consist of nine to 15 trustees, three of which would initially be appointed by the township, but the rest appointed by the other trustees.

Township Manager Matthew Watkins said the corporation's formation could really help implementation of programs.

"We'd be able to do things more efficiently and effectively," said Watkins.

That it could also be a huge problem was a concern expressed by some members of the council, who worried whether the corporation might get out of control. Mayor Frank Gambatese urged caution to make sure the township doesn't do anything it might regret later.

"If it's not reviewed by the council, it can become a contentious issue down the line," said Gambatese.

Similar systems have been put in place in East Brunswick and Morristown, and Gambatese urged study of how those have been working out. The council is expected to resume discussions on the matter next month.

- Chris Gaetano