Vote on New Housing Development Divides City Council

A last minute resolution to help approve the application for the Hoboken Housing Authority's large scale overhaul divided the city council late on Wednesday night, causing half the members to walk out before the official end of the meeting. 

The resolution wasn't on the agenda and was brought forth around 11 p.m., during the new business section of the meeting.

HHA Executive Director Carmelo Garcia asked the council to approve a resolution of need, a stipulation by the Community Development Block Grant, to be considered for federal monies that was recently given to New Jersey for disaster relief.

Garcia is asking the administration to approve a 30-year pilot program for the first phase of the project.

In a memo before the council meeting on Wednesday night, Mayor Dawn Zimmer wrote that the administration had not received any information about the proposed pilot agreement. (the memo is attached to the article).

"It is extremely unfortunate you chose to approach my administration with a request for a 30-year pilot and a resolution at the very last minute without ever having discussed these matters with me, or to my knowledge any member of the City Council or even apparently with your own Hoboken Housing Authority board," Zimmer wrote.

Zimmer continued that the building also doesn't currently adhere to the city's safety standards and that the building is not accessible for seniors under its current design.

The deadline for the application is May 7, which will likely not be met.

A portion of the money had been set aside for affordable housing statewide, and the CDBC will be processing applications from housing authorities throughout the state.  

"The whole concept behind Vision 20/20 is to build new modern efficient buildings to replace the existing [dated] affordable housing buildings,” said Garcia on Wednesday. “[The funding is to] implement the first phase of Vision 20/20, which will be to build a 44-unit building of low income housing.”

According to Garcia, the building would be the first of its kind: a modern efficient building, which would be built to also withstand the flooding in the area and be “Sandy Proof."

Shedding some light on the project for the council was Dr. Robert Powell, who is acting as a financial advisor and planning advisor for the housing authority. Powell is a managing director for Nassau Capital Advisors, LLC.

“The first phase of the Vision 20/20 project is a 44-unit building plan to be built on Harrison and 4th streets, which is land owned by the housing authority,” said Powell. “It is designed to be replacement housing.”

According to Powell, the current affordable housing buildings are about 50 to 60 years old. The resolution to establish need, which is not meant to approve the project only to establish need in order to get funding, states “the governing body of the Municipality hereby determines there is a need for this housing project in the Municipality.”

Council members Ravi Bhalla, David Mello, and Vice President Jennifer Giattino — those in alliance with Zimmer — said they were concerned because it was the first time they had seen the resolution or heard about Vision 20/20. h

They wanted time to look over the material before making any decisions pertaining to the project. Many of them were also upset by the manner, which the item had been presented – feeling it had been slipped in for quick approval.

Powell said this was not the case, explaining that the original deadline of June 21 — a change made in the first week of April — for the low-income housing tax application process had been moved up due to the recent federal money for disaster relief given to the state.

When asked why they had not submitted the resolution to be part of the May 1st meeting agenda, Powell said they were finalizing other details for the application including acquiring developer, RPM Development Group who signed on in mid-April. He continued to say that he hadn't anticipated to encounter any opposition to the project because it was for affordable housing.

“In spring a great deal of money was given to New Jersey and it had to be delivered quickly,” said Powell. “We have been scrambling to put the application together.”

Garcia had also attempted to address the council earlier in the evening about the matter during public comment, but had not signed up to speak at the time. Council President Peter Cunningham asked him to wait to address it as new business at the end of the meeting.

Powell said the funding for the Vision 20/20 project, which has been in talks for three years, is coming from three sources: $7.3 million from the low income housing tax credit program, $3.4 million from CDBC, and a $1.9 million loan from the New Jersey Housing Mortgage and Finance Agency (HMFA). The HMFA loan would be the project’s only debt.

“One of the reasons we are here is we need a resolution of need,” said Powell. “That the project will meet an existing need for low income housing in the city. Second we are asking council to approve a tax abatement resolution that needs to be approved by May 31.”

Since the project is being done by an outside private entity it is taxable, which is why the HHA is asking for an abatement.

“These are the official actions we need from the city council to compete [in the application process],” said Powell.

Garcia said if they receive the funding the building could be under construction as early as next year.

Cunningham asked for a furhter presentation of the project, as well as a review by a subcommittee. A heated exchange between the council members followed.

Councilman Michael Russo showed strong support for the measure, as did council members Terry Castellano, Beth Mason, and Tim Occhipinti. All four said they wanted to pass the resolution then and there.

Locked in a four-four deadlock, the council was unable to pass the resolution or overturn Cunningham's decision to send the matter to subcommittee. 

“This is what we call class warfare at its best,” said Russo. “I call it racist.”

By 12:10 a.m. and after continued arguing, council members Giattino and Bhalla were the first to walk out of the meeting. Shortly thereafter Cunningham and Mello followed.

Before departing herself Corporate Council Melissa Longo told the remaining members that they no longer had a quorum — a majority needed to pass resolutions — but the remaining council members continued to vote. They voted to override the chair’s decision and pass the the resolution 4 to 0, and had the city clerk document the recent vote.

But will the action hold up in court if it is challenged by the other council members?

“We’ll find out,” said Mason.

Russo added that case law states a member of the governing body cannot leave to prevent a council vote, so it should hold up. They voted as if the other members were absent.

“I think we did the right thing by the residents, “ said Castellano. “Either you want to help people or you don’t.”