Tax Exemption Approved For Moorestown Affordable Housing Project

MOORESTOWN, NJ — Moorestown Council took two steps toward securing federal tax credits for a proposed affordable housing development on Borton Landing Road when it met Monday night.

Council gave final approval to a proposed ordinance that establishes transportation for the project currently known as the Moorestown Family Apartments at its meeting Monday night at town hall. The vote was unanimous.

It also approved a proposed ordinance to pursue a long-term tax exemption for the development. The vote was 4-0, with Councilman Dave Zipin abstaining.

Both are needed to help the developer earn a perfect score on the project to qualify for tax credits, according to Mayor Nicole Gillespie. The developer has until Aug. 30 to apply for the tax credits.

The project was the subject of a recent land swap between the township and Lockheed Martin after the defense company and the U.S. Navy expressed national security concerns over a proposed affordable housing complex in the area. Read more here: Moorestown Moving Forward With Proposed Lockheed Martin Land Swap

The developer is the Walters Group, which plans to develop a mix of 76 market rate units and 76 low- to moderate-income units. At least 25 percent of the units would have to have three bedrooms to qualify for the tax credits.

A maximum of 20 percent have to be one-bedroom units, and the rest would have two bedrooms.
The development is located more than half a mile from any existing mass transit, which is the bus stop at Centerton Square in Mount Laurel.

The transportation that council is considering is a bus service that would have a minimum of two stops a day during both the morning rush hours and during the evening rush hour, and at least one stop between 3 p.m. and 6:30 p.m., Monday through Friday, all year. It would go to the Centerton Square bus stop.

The township said it intends to use the money paid by Lockheed Martin to pay for the cost. The specifics of what that service will look like will be determined at a later date, Gillespie said.

The long-term tax exemption would have five stages:

• Stage 1 would last 15 years, during which time the annual service charge shall be equal to 6.28 percent of the annual gross revenue;
• Stage 2 would last three years, and the annual service charge would be either the amount determined in Stage 1 or 20 percent of the taxes the developer would otherwise pay;
• Stage 3 would last three years, and the annual service charge would be either the amount determined in Stage 1 or 40 percent of the taxes the developer would otherwise pay;
• Stage 4 would last four years, and the annual service charge would be either the amount determined in Stage 1 or 60 percent of the taxes the developer would otherwise pay; and
• Stage 5 would last five years, and the annual service charge would be either the amount determined in Stage 1 or 80 percent of the taxes the developer would otherwise pay.

At the end of the agreement, the developer would pay 100 percent of the taxes they owe. Read more here: Moorestown Council Considering Land Swap With Lockheed Martin