By Sunayana Prabhu
HOLMDEL – In the next 10 years, the township will build 106 affordable housing units, a number hailed as a “huge win” by township officials compared with the 133 units originally proposed by the New Jersey Department of Community Affairs (DCA) last year under the state’s Fair Share Housing Act.
After much pushback against the state’s affordable housing mandates, township officials announced a “significant reduction” in their obligations following negotiations with the state’s Fair Share Housing Center (FSHC). The news came at the April 8 township committee meeting.
“We were able to get a significant reduction in our Trenton-mandated housing, which is a huge win,” Mayor Brian Foster said at the meeting. The governing body unanimously passed two resolutions during the meeting substantially settling the township’s affordable housing requirements; a resolution approving the mediation agreement with FSHC, a nonprofit that supports the state’s affordable housing goals, and another resolution approving a redevelopment agreement with 23 Main Street Urban Renewal, LLC., the redeveloper of the former Vonage headquarters property. That redevelopment will create 48 affordable units in the planned care community for seniors.
Affordable Housing Negotiations
Since last year, the township has been involved in legal battles against the state’s new Fair Share Housing Act. That law enforces the Mount Laurel doctrine, a state Supreme Court directive from the 1980s that compels municipalities to meet affordable housing requirements in 10-year cycles called “rounds,” ensuring housing opportunities for all. The fourth round of affordable housing obligation began this year and runs through 2035.
The DCA calculated Holmdel’s present affordable housing need for existing units that need upgrades and rehabilitation at 129 units. While the township officials agreed to those numbers, they challenged the prospective need for 133 units proposed by DCA because that entails new construction. When developers propose projects with integrated affordable housing, they mostly agree to build only 20% affordable and 80% market-rate to make the project financially viable. A 133-unit requirement proposed by the DCA would have meant construction of nearly 700 new homes in the township.
Holmdel joined over 20 other municipalities in litigation last year to dispute the DCA’s numbers and challenge the state’s Fair Share Housing Act itself. The township argued that its infrastructure and environmental vulnerability cannot support more development. That litigation, aimed at bringing a stay on the fourth round of affordable housing obligations, is ongoing.
Meanwhile, the township submitted its own affordable housing numbers in January to comply with the state’s housing calendar, which required municipalities to submit their obligations by Jan. 31. The township’s planning team submitted a need for 98 units against the state estimate of 133 based on total developable land, household income and nonresidential valuations. In February, FSHC objected to Holmdel’s calculations and countered with a prospective need obligation of 130 units, only three less than originally required. Holmdel then engaged in negotiations with FSHC through the state’s Affordable Housing Dispute Resolution Program, settling on 106 units.
“Our number 106 is a lot closer to 98 than it is to 133, so I would claim a victory on that,” said resident Patrick Trischetta at the Tuesday meeting.
Vonage Redevelopment Plan
The governing body also unanimously approved redevelopment plans for the former Vonage headquarters, which have been in the works since last year. The plan will be undertaken by 23 Main Street Urban Renewal, LLC, an affiliate of 23 Main Street Propco, LLC, the property owner.
The 350,000-square-foot corporate building, located on nearly 88 acres at 23 Main St., is one of the largest parcels in the township. However, it couldn’t yield much benefit for the municipality because it stayed largely vacant for nearly four years. During the COVID-19 pandemic, Vonage, the cloud communications company, moved into the Bell Works complex on Crawfords Corner Road.
The property will now be transformed into a continuing care retirement community (CCRC) as proposed by Bloomfield-based developer Community Healthcare Associates (CHA).
Township attorney Michael Collins provided specifics about the Vonage redevelopment plan during the meeting, noting that 48 of the 299 units in the project will be designated affordable housing. Each housing phase will include affordable housing set-asides: Phase 1 will feature 104 senior living units for sale, with 21 units (20%) designated as affordable housing. Phase 2 includes 65 cottages, with 13 units (20%) set aside as affordable. Phase 3 comprises 90 beds across assisted living, memory care and skilled nursing facilities, with six beds (10%) allocated as affordable. Phase 4 will consist of a three-story senior living apartment building with 40 rental units, of which eight (20%) will be affordable.
Collins explained that the developer is providing these affordable housing units across different residential types because “developers lose money on affordable units” and cannot typically create an entirely affordable project without additional funding sources.
This redevelopment agreement “will have a significant impact in assisting the township in complying with the fourth round, consistent with the settlement,” noted Collins.
Additionally, township officials negotiated three concessions in the redevelopment agreement. The developer will provide 7,000 square feet within the existing building dedicated to a multipurpose flex room, which will serve as an activity and education center for senior township residents. Additionally, the township will receive a 5-acre parcel adjoining County Route 520, which will be subdivided and deeded to the municipality for future use. Township officials also negotiated stringent wastewater management provisions, requiring the developer to work closely with the township engineer. Before finalizing the agreement, the engineer dispatched a letter requesting a comprehensive sanitary sewer report from the redeveloper to ensure compliance with existing environmental permits and water usage regulations.
“I am concerned about the precedent for high-density development in that part of town,” said Karen Strickland, the township’s environmental commission chair, during the meeting. She questioned the impact of the future development’s sewage system on the nearby Willow Creek, a state-classified category-1 freshwater stream.
“I do not believe any precedent has been set,” Foster said, adding that the property was “utilized by 2,000 people back in the day with that 350,000-square-foot building. We’re adding more open space… There’s going to be significantly less people there,” Foster said. “I do feel that this is a great plan that really is going to be a positive for our town.”
The article originally appeared in the April 24 – 30, 2025 print edition of The Two River Times.
