State: No deal on moldy home

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State: No deal on moldy home

Questions raised on COAH funds

Wednesday, April 11, 2007

BY RALPH R. ORTEGA

Star-Ledger Staff

The Star-Ledger Tue, 10 Apr 2007 10:48 PM PDT

http://www.nj.com/news/ledger/somerset/index.ssf?/base/news-

2/11762697469960.xml & coll=1

Officials in a Somerset County town poised to spend more than

$400,000 in affordable housing funds to rebuild a woman's mold-

infested home, said the plan to avoid a lawsuit was idle yesterday

after state officials claimed they never gave their consent.

A letter from the Council on Affordable Housing written to

Bridgewater Mayor Flannery Thursday explained an e-mail

relied upon by township officials to go forward with the plan to

rebuild Elliott's house on Foothill Road, " in no way should

be interpreted to be a specific approval by COAH for the expenditure

of over $400,000 from the affordable housing trust fund. "

COAH Executive Director Lucy Voorhoeve wrote in bold letters in the

letter, " If the township plans to expend the funds, or has already

done so, and the expense turns out to be ineligible, the township

shall be responsible for reimbursement of the funds. "

Township officials yesterday said the plan won't have final approval

until COAH's concerns are addressed. Township Administrator

Naples insisted the plan to use the affordable housing money had

been appropriate. " We never did anything to skirt those rules in any

such way, " said Naples.

Township Attorney B. Savo said he was first phoned by COAH a

week ago, after a story appeared in The Star-Ledger about the deal

that had been worked out with Elliott. He said he believed state

officials only raised concerns because of the story.

" Isn't that cute? " Savo said, in response to COAH's rejection of an

e-mail approval used for Elliott. He added, " most people do business

by e-mail and fax. "

Elliott, a once-prominent real estate agent, claimed she can no

longer do " 90 percent " of her work because of health problems from

exposure to a decade-old mold-infestation in her home.

She blamed the mold on the township's negligence, accusing township

employees of allowing drainage problems from private residences and

private roadwork that caused the infestation.

In addition, she provided medical reports that indicated she

was " sensitive " to mold, according to Savo.

After a township-hired contractor botched a remediation of the

infestation, a settlement was worked out to avert a costly lawsuit,

said Savo. Elliott's current lawyer, Lime, said Bridgewater

could have faced a loss of " seven figures, " had she gone to court.

The settlement, hashed out over two years, would spend more than

$400,000 rebuilding the home, and give Elliott the first $150,000

from any monetary award that comes from a lawsuit Bridgewater plans

to file against the contractor.

The township also will " assist " Elliott in applying for a

subdivision of her 1 acre property, according to Savo, who said the

land was incorrectly subdivided by the township.

If zoning officials hearing an application for the subdivision next

month give it their approval, Elliott will end up having rights to

two properties, and can sell any one of them at her pleasure. She

also will not have to repay the money spent to rebuild her home,

Savo said.

Township officials said Elliott's income loss had qualified her for

the COAH funding. The money, collected from developer fees, is

generally used to rehabilitate the homes of property owners who

qualify, according to officials.

In the e-mail sent by a COAH assistant planner, , to

Savo on Sept. 20, never addresses Elliott's case

specifically. She does say a home " previously occupied, and an

eligible household for (the township) rehabilitation program...would

be considered a rehabilitation project. "

" Bridgewater can use development fees to fund the rehabilitation

program since it is stated in the municipality's spending plan.

There is no maximum on the amount of money the municipality can

spend on each unit, " wrote .

" It's disappointing when the state sends something in writing, and

you can't rely on it, " said Savo yesterday.

COAH Executive Director Lucy Voorhoeve's letter requests a copy of

Elliott's " income-qualification file, " and a timeline of her case

leading up to 's e-mail. It also asks for a copy of the

township's affordable housing rehabilitation manual, and

contractor " write ups, " for the proposed home reconstruction.

Savo vowed to comply with the demands, and the township would " abide

by COAH's decision " to determine going ahead with the deal.

Ralph R. Ortega may be reached at rortega@... or (908)

429-9925.