Maplewood Approves PILOT For Affordable Housing Project

MAPLEWOOD, NJ — The Maplewood Township Committee greenlighted a payment in lieu of taxes (PILOT) agreement for an affordable housing project on Tiffany Place at their recent meeting.

Town administrators gave a recap from their Aug. 6 meeting on the municipal website:

“At their August 6, 2024 meeting, the Maplewood Township Committee approved a financial agreement with 93-95 Tiffany Place Urban Renewal Corporation to provide for two affordable apartment units at 95 Tiffany Place, Maplewood. The agreement follows seven months of negotiations between the Maplewood Affordable Housing Board, the Township Committee and Sierra House, the East Orange-based, nonprofit project sponsor. This 100% affordable housing project consists of two newly constructed units; one two-bedroom unit and one three-bedroom unit that will be leased to families with very-low incomes, specifically those families earning less than 30% of the area median income. In addition to financial assistance from the township, the project has also received a $920,500 grant from the National Housing Trust Fund through the State of NJ and a $300,000 loan from the Nonprofit Finance Fund.”

Town officials continued:

“The creation of affordable housing units is challenging in municipalities like Maplewood, where new development is limited. Typically, new affordable housing units are created in larger developments, which are required by township code to set aside 20% of their for-sale units and 15% of their for-rent units as affordable units. In addition to the creation of affordable housing through these set asides, and working with 100% affordable projects like 95 Tiffany Place, the Township Committee recently issued a Request for Expression of Interest (RFEI) from developers interested in developing affordable housing. This RFEI intends to attract and encourage smart, scaled development that produces affordable units for those who desperately need them.”

According to town officials, the 95 Tiffany Place project is not feasible without financial assistance from the township, provided in the form of a PILOT agreement.

In exchange for a 30-year PILOT, the property will be deed restricted for 30 years, during which time the project is only permitted to rent to very low-income families, administrators said.

The PILOT is structured so that the township will collect no less than $7,000 per year in taxes for the first 15 years of the PILOT, followed by regular increases in years 16 to 30 toward full taxation, officials added.

Watch meeting footage from Aug. 6 below (video is cued to the discussion).

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