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June 28, 2012

Re:  Housing Trust Funds Court Issues Temporary Injunction Prohibiting Forfeiture of Marlboro’s Municipal Housing Trust Funds

Dear Mayor:

Yesterday, Judge David F. Bauman of the Civil Division, Superior Court, Monmouth County, issued a temporary injunction prohibiting the forfeiture of Marlboro Township’s housing trust funds to the State.   

Specifically, Judge Bauman ordered that the Department of Community Affairs (DCA) and the Council on Affordable Housing (COAH) are temporarily enjoined from ordering the transfer of the Township’s trust funds until further order of the Court. 

Further, all parities are directed to appear before Judge Bauman on July 13 to argue the merits of the motion.

This is obviously a significant development, even if this specific order pertains only to Marlboro.    The Township is asking the Court to declare that  it complied with the law and committed its funding.   This is in addition to the recent denial of the Administration’s request for a stay of the Appellate Division decision that set-aside the Governor’s administrative order abolishing COAH.    Because of that, the issue of whether COAH must affirmatively act to seek forfeiture of the trust funds is also in question.  

S-2011, which will provide a two-year extension for the commitment of the trust funds, is scheduled for a Senate vote today.    Its companion, A-2950, previously passed the Assembly, and if it passes the Senate today, the bill goes to the Governor’s desk for his consideration.     There is also new budget language that will provide clarity as to the definition of “committed for expenditure.”    For more on these bills and the budget language, please see the Dear Mayor letter of June 26.

We suggest bringing these developments to the attention of your affordable housing professionals and attorneys.  For more on these issues, please contact Mike Cerra at mcerra@njslom.com or 609-695-3481 x120. 

Very truly yours,

 

William G. Dressel, Jr.
Executive Director

                                                                       

 

 

 

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