Published: Tuesday, May 10, 2011, 7:30 AM    
By Dan Goldberg/The Star-Ledger

TRENTON — A state plan to use affordable-housing dollars to move 600 developmentally disabled people into renovated homes over the next two years earned praise Tuesday from advocates, who called it a step toward alleviating a severe housing shortage.

The action follows a Star-Ledger report last month that found 8,000 people are on a state waiting list for homes and services. Of those, 4,800 are considered priorities, and some have been waiting for more than a decade.

"A tremendous need still exists," said Arnold Cohen, policy coordinator for the Housing and Community Development Network of New Jersey, a nonprofit coalition of more than 250 groups

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The state’s plan would try to address that need and unclog a housing system advocates call broken and bottlenecked.

Under the plan, municipalities would buy three- or four-bedroom ranch-style homes and two-bedroom condominiums in their communities, said Lori Grifa, commissioner of the state Department of Community Affairs. The homes would be renovated to accommodate developmentally disabled people.
The state would act as a middleman, supplying a list of approximately two dozen developers and suppliers from whom towns could choose, and offering tax credit financing and low-interest loans.

"It’s a measured step, but it’s an important initiative," Grifa said. "You’ve got to start somewhere."
To pay for the plan, the state is encouraging towns to dip into their affordable-housing trust funds — a pool of locally controlled money collected from development fees.

About 250 municipalities have some $280 million set aside for affordable housing, according to Grifa. The state Department of Human Services will provide additional funds for social services.

"This is a new and collaborative way to approach expanding the number of housing opportunities and people with developmental disabilities and their families will benefit from this partnership," said Pam Ronan, spokeswoman for the human services department.

"It seems very exciting," said Bob Davison, executive director of the nonprofit Mental Health Association of Essex County. Davison was chair of former Gov. Richard Codey’s task force on mental health, which recommended creating a special-needs housing trust.

That fund was created in 2005 to provide housing to 10,000 people with mental and physical disabilities. But the $200 million fund now is almost broke and expected to serve only 2,000 people.

At the same time, many of those waiting for housing and services are in their 40s and 50s and living with their aging parents. Hundreds more are housed in one of seven state-run developmental centers.

Those living in centers would have priority, Grifa said.

There are still challenges to be met, Davison said. Municipalities have been reluctant to spend affordable-housing money because of uncertainty over the future of the state Council on Affordable Housing.

Some towns also may not want to bring special-needs housing into their communities, he said, while others may not want to turn a taxable private residence into a nontaxable group home.

Grifa acknowledged those challenges but said the plan was the result of conversations with several mayors.

"There will probably be a great deal of interest," said Mike Cerra, a senior legislative analyst with the New Jersey State League of Municipalities. "Towns are willing to spend these dollars because they know they have this obligation."