Mahwah Housing Commission Discusses Compensation for Extending Affordable Housing Units

The Mahwah Housing Commission discussed at its Tuesday night meeting how residents of affordable housing units should be compensated for extending their affordably after their deeds expire.

Under the 95-5 rule, which was established 25 years ago to allow people to affordably live in Bergen County, homeowners are allowed to sell their units at fair market value once their affordable agreements reach a 25-year maturation point.

But what many residents aren’t aware of, according to Mayor Laforet, is that there is a high chance that their taxes will go up to fair market value and a certainty that their HOV, or maintenance fees, will increase.

“We are concerned for those who are unaware of the consequences of [not extending their affordability],” said Mayor Laforet.

The question brought up at the Housing Commission meeting is how exactly will Mahwah compensate those willing to extend their affordability. Mayor Laforet stressed that the Township cannot control the HOV fees imposed on the units, but can make sure the the property taxes stay the same.

“We need to see through the eyes of the residents [who face any increase of money],” Mayor Laforet said.

The Housing Commission also approved to have a mailing sent out to affordable housing unit owners letting them know that they’re 25-year agreements have reach maturation point, though they noted those owners would have to seek their own council.