PILOT PROGRAM WILL PROVIDE HOUSING FUNDS IN FRANKLIN TOWNSHIP  SOMERSET COUNTY

A pilot program has been approved by the Franklin Township Council and Department of Community Affairs that is designed to help low and moderate income households.  Franklin Townships recently adopted Ordinance No. 3957-11 adds Local Affordability Assistance Programs.  This new pilot program will utilize up to $1.5 million of the $7 million from the Township Housing Trust Fund.  This Trust fund is a result of Developer Fees that were collected by Franklin Township over a 20 year time period and were paid by developers. 

There are two main goals of the Local Affordability Assistance Program.  The first is to help households trying to purchase deed restricted low and moderate income affordable condominiums in Franklin Township, Somerset County.  The maximum grant for this part of the assistance program is $20,000.  Awardees must prove they will be able to pay all the required expenses related to owning their affordable home.  Grant funds will only be awarded after a household has contracted to purchase an affordable unit and they are out of attorney review.  The home must be safe and meet HUD Housing Quality Standards as evidenced by a professional written home inspection report.  Applicants cannot be mortgaging more than 3 times their gross annual income.  The property they are purchasing must be for use as their primary residence.  All grant recipients must have completed a pre-purchase program PRIOR to signing a purchase agreement or contract of sale.  The pre-purchase program must be completed by all parties that are on the affordable application and going on the recorded documents.  

The second is to help struggling Franklin Township (Somerset County) homeowners of low and moderate income housing in Franklin Township with an interest free loan to help them remain in their affordable housing unit. Homeowners that are in arrears with shelter costs may apply.  Shelter costs are defined as: mortgage, sewer/water, real estate taxes and/or association fees.

Some of the qualifications required are: Households must be spending more than 30% of their gross annual income on shelter costs.  Households must prepare a budget and prove income and expenses.  Maximum amount of this grant is not to exceed $15,000.  Must demonstrate that if awarded an assistance grant, the household has demonstrated to a reasonable satisfaction that there is a very high likelihood that with receipt of the affordability assistance the household will be able to stay current with all future shelter costs. 

The Homeowner Affordability Assistance Program is a deferred payment loan, with the amount (no interest) to be repaid either upon the sale of the unit (if less than 5 years) or it is forgiven upon the expiration of 5 years from the date of the execution of the recording documents that will need to be recorded upon grant distribution. 

James Vassanella, a Franklin Township Councilman and CJHRC Board Member commented, “This is a truly unique program, the first of it’s kind in the region” he added, “Franklin Township/CJHRC are leading the way in helping residents stay in their affordable homes that otherwise would likely be foreclosed on.”

For more information contact The Central Jersey Housing Resource Center (CJHRC) at 908-203-4560 mailbox #2.  CJHRC is recognized as a premier Housing Non-Profit and HUD Counseling Agency throughout the state of New Jersey.  Potential applicants can also email us at cjhrc@verizon.net