The Affordable Housing Discussion in Pascack Valley

By MATTHEW WIKFORS

As a longtime resident of Montvale, Robert Mullen has seen the town lose some landmarks. In the four decades that he has been living in town, he has seen the old Montvale library be built, closed, abandoned, and refurbished into office space, witnessed the restaurant on West Grand Ave. close and reopen as a new restaurant under new ownership several times, and watched the iconic Montvale Roller Rink be torn down and replaced with luxury senior living. He said that the one change that has stuck out to him the most is the loss of the Mercedes-Benz corporate office, which was moved to Atlanta, Ga. and was torn down to be replaced with affordable housing apartments currently under construction.

“I feel like this change to the town stands out to me the most because I think it’s a place everyone remembers,” he said. “I remember the Montvale Roller Rink because I took my children there in the ’90s, but I don’t know many younger residents who would. Unless you ate there every now and then, I don’t think you’d remember Eleni’s or Montvale Diner. But the Mercedez-Benz building is something I think everyone is familiar with. You would pass by the building on the way to the library, see the Mercedez out on the front lawn and think, ‘Yeah, that’s Mercedez-Benz’.”

Mullen said that he felt like the town lost a part of its identity when Mercedez-Benz moved its office. He felt that it was really a sign that the town was changing, especially once Depiero’s Farm was sold in 2018.

“I might have been sad when Montvale Roller Rink closed, but that place was losing money and couldn’t stay open. It was a fun relic of the past. But Mercedez-Benz was an icon of the town. The office was one of the things the town was known for, both to residents and to other towns. It felt like the town lost part of its identity when the office closed. Then, Depiero’s followed suit a few years later and became Wegman’s and some luxury stores. Now, the former site of Mercedes-Benz is going to be used as land to build apartments on. I don’t quite know what to think of such drastic changes to the town in such a short time,” Mullen said.

The towns of Montvale and Emerson in Pascack Valley are undergoing major building changes. What used to be the site of corporate buildings, town icons, and small businesses have been transformed into housing. The Pascack Valley region has seen an increase in housing complexes in recent years, both affordable and luxury. The Montvale Borough website lists three new complexes, like Village Springs at the site of the old Mercedes-Benz corporate headquarters, that are opening.

Montvale is a small town nestled between the border of two New York towns (Pearl River and Chestnut Ridge). It boasts a population of 8,580 residents and the median income for households is $146,708. The town also has a high population of seniors. Out of the 6,503 adults living in town, nearly 25% of them are seniors. In comparison, Emerson is considered the southernmost borough in the Pascack Valley region. It is smaller in size compared to Montvale (about 2.2 sq. miles compared to Montvale’s nearly double 4.0 sq. miles. Its population is considerably smaller with 7,562 residents and the median household income is $128,093, almost $20,000 less than the median income in Montvale. The town also has a high rate of seniors among its adult population, nearly 25% like with Montvale.

What is Affordable Housing?

Affordable housing, is defined as a housing unit that a household can obtain for 30% or less of its income, according to the federal Department of Housing and Urban Development. This income threshold differs between areas because a household’s income is based on the median area income. There are also multiple thresholds that a household can fall into when applying for affordable housing.

For example, a one person household in Bergen County is considered part of the “moderate” threshold if the income limit is $53,733 which means the income is between 80% to 50% of the median area income. In contrast, a one person household would be considered part of the “very low” income if their income limit is $20,150, meaning their income is 30% or lower than the median area income. The income limits are not officially adopted by the state of New Jersey. The income limits increase based on the household’s income limit as well as how many individuals.

There are also various means of developing affordable housing like zoning laws, which set aside patches of land and dictate what they will be used for. An example of zoning in Montvale would be The Shoppes at Depierro’s Farm which was a commercial zoning area that includes the former site of DePierro’s Farm and the former site of the Mercedes-Benz corporate office.

The land was set aside for commercial use and housing construction is currently underway on the Mercedez-Benz site. There are also ordinances like inclusionary zoning as well as the construction of luxury housing to think about as Montvale possesses multiple townhouse complexes and luxury condominium complexes.

“We’re always looking to make Montvale a better place for everyone to live,” said Montvale mayor Mike Ghassali. “When we take on construction projects, the borough decides what the town needs, what can attract more people, and what can help improve daily life for our residents. With The Farm project that redeveloped the Depiero’s property and will redevelop the surrounding unused office space, we planned to include both luxury and necessity. We wanted to include high-end stores for residents and draw people in from New York and provide affordable housing to new potential residents with The Village Springs.”

According to a 2012 spotlight report from the National Low Income Housing Coalition , nearly one-third of public housing residents are elderly. Elderly households make up a large percentage across every type of housing program.  The data also showed that Blacks had the highest poverty rates by census and the highest housing rates for public housing and voucher-based housing. Households (non-elderly and non-disabled) with children also make up a large portion of those living in housing programs, with 35% of these households being a part of public housing.

According to that National Low Income Housing Coalition, only one in four households eligible for assistance in 2012 received that assistance. Vox’s article on the housing debate also said that not everyone who applies for affordable housing can actually afford it. The Washington DC Metropolitan area was used as an example.

A family of three has a maximum income limit of $48,375 and would be considered part of the “low income” threshold. Someone might be able to qualify for affordable housing because they meet the income threshold, but they might not be able to afford it based on the area they live in.

The Impact of COVID on Affordable Housing

When the pandemic hit the country last month, it was as if those who needed affordable housing were hit with a sucker punch. Even before the pandemic, millions struggled across the U.S. to afford housing. According to the National Low Income Housing Coaltion’s  March 2021 report on housing assistance and COVID-19, a full-time worker needed to earn $23.96 per hour to afford a modest two-bedroom apartment. Rates of homelessness were also on the rise in 2019 and researches projected that homeless people would be “be twice as likely to be hospitalized, two to four times as likely to require critical care, and two to three times as likely to die than the general population” in regards to COVID.

The federal government responded to housing problems in waves. When the CARES ACT was passed in March 2020, one of the things it did was provide funding for housing programs, establish a moratorium on evictions and foreclosures, and increased rental assistance. In September 2020, the CDC issues its won eviction moratorium which provided renters protection from eviction for nonpayment of rent as a result of reduced income from COVID. The Emergency Coronavirus Relief Act passed in December 2020 provided additional funds for housing relief.

State government also swooped in to provide housing relief. On March 22, New Jersey opened its COVID-19 Emergency Rental Assistance Program Phase II  to provide relief and assistance to individuals living in low to moderate income houses that received a significant decrease in income due to COVID. The state government website provides in-depth information on  about who is eligible, criteria, the application process, and maximum income limits.

“I think it’s important now more than ever to be able to provide affordable housing to people in New Jersey. Many people have lost their livelihoods and it can be difficult to recover from job loss, especially with current COVID restrictions. I feel like many people are worried about income and being able to afford living where they are,” said Frank Piazza, the affordable housing agent for Montvale and a representative of Piazza and Associates, a company that provides affordable housing and community management services in New Jersey.

According to their website, Piazza and Associates has “been at the forefront in the administration, monitoring and compliance of affordable housing in New Jersey” since 1994. The company’s work with affordable housing programs includes acting as an administrative agent and consultant for municipal governments and developers, helping households find low and moderate income housing opportunities, and a resource provider to landlords and residents of affordable housing.

New Housing Facilities and New Problems 

All three housing complexes in  Montvale are currently accepting housing applications. Piazza and Associates is currently responsible for overseeing the applications for and overseeing the development of The Village Springs.

“I don’t know much about the development for the first phase of The Farm project. But what I do know is that including affordable housing units in the second phase of development was always the plan,” Piazza said. “As the town’s affordable housing agent, I knew that the town trusted my company and I to help fill these apartments and make sure they provide for their residents, the same way we do for Montvale Station and Charleston Court. The construction of the building just so happened to coincide with COVID, so I fee like it was a sign in some way. The Village Springs was always going to be built, but I feel now its presence may be more important than it would have pre-COVID.”

Park Ridge also  announced  it is opening The James in the coming months, which is a building that will provide street-level retail space for luxury business and 24o studio residences designed for “today’s sophisticated urban renters” and includes affordable housing. Both Montvale and Park Ridge express that they are happy about the new housing developments.

Then, there is the town of Emerson. The town is currently embroiled in a legal battle over the Emerson Station affordable  housing project. The previous town mayor approved the project two years ago. The current mayor, Danielle DiPaola, inherited the project when she was sworn into office in January 2019. She was openly opposed to the project, commenting to residents that “we cannot stop the project and we’re not looking to engage in any litigation to stop the project”. She claimed that the borough lost commercial businesses due to redevelopment for affordable housing. She also claimed that the project was pitched as “something similar to a Westwood Avenue” (referring to the street of Westwood Avenue in Westwood, NJ that combines apartments and commercial business and acts as a business hub for the town). Instead, she said that traffic will become a big issue and that traffic will become worse for the streets of Lincoln and Linwood.

“I don’t think affordable housing is something you should fight,” said Ghassali. “Affordable housing is meant to meet the needs of people in your community. As mayor, I approved The Village Springs because I felt that it met the need for more affordable housing in town. I feel that Emerson’s conflict with developers and the delays in the project are not helping the community. Instead of focusing on providing a need for their people, the town is focused on stalling a project the current mayor was against.”

The project is being stalled by competing lawsuits. Town officials were accused of obstructing the project and breaching their contract by not providing construction services to the developers. Despite DiPaola’s opposition to the project, the judge ruled that her alleged actions “do not rise to the level of obstruction of purposeful interference”.  The town was also accused of not following the timeline that was set in the contract. The legal battle heated up further as the developer later accused the town officials of obstructing the project due to “racial animus”.

The Superior Court approved the project’s settlement agreement on Jan. 25, 2019 but not units have been built yet. If another year passes, the developer is under no obligation to finish the project as well since the agreement would end.

“I think the town’s treatment of the project and the ongoing conflict between the developer and town is wrong,” Piazza said. “We aren’t involved with the Emerson Station Project, and I’m happy about that. Even if the project was partially approved to meet the state requirement for affordable housing, there is still a need for it in Emerson. I don’t believe there are any other affordable housing complexes in the town, which means the town isn’t providing for its residents in the way it should. I understand wanting to keep the businesses that were demolished because they bring in money for the town. But you can’t prioritize your own wants over the town’s needs. It’s selfish to try to fight change for the better.”