How One Town Defeated HUD Grants

This information is courtesy of John Anthony the Founder of “Property Value Defense”. He is but one of the few people keeping us informed on what other towns are doing in other states to keep HUD influence out of local affairs.

Ringwood is a wooded community in a beautiful lake area of northwestern, NJ. Over the years, the borough has accepted HUD grant money as a pass down from larger Passaic County.

In July 2015, HUD underwent a radical change. While the agency’s grant names and terminology remain the similar, HUD took copious latitude in redefining their authority under the Fair Housing Act; and their revised enforcement methods establish severe legal risks never before encountered by most communities.

HUD’s “radicalization” can be hard to grasp, especially when jurisdictions have a long history of accepting their funds, as was the case with Ringwood.

In this edition, I included excerpts from the Borough’s public minutes. They are an excellent record of what can happen when local public officials stay informed and works together with community members.

EXCERPTS FROM JULY 19, 2016 MINUTES FROM RINGWOOD NJ

Pam Herbig, 14 Maple Road, Ringwood

I am here about the Passaic County Community Development Block Grant Program, I oppose the grant, and it is in conjunction with HUD. You should have sufficient time to read and understand about this program. If you continue to accept the HUD grant, we will be forced to prepare detailed taxpayer finance studies of our schools, retail, housing and other community agents to HUD. Mr. Obama is trying to pass this. I request you postpone this resolution until you have time to go over it, I think it will be a detriment to Ringwood, we don’t need this in Ringwood. If you don’t accept it, we won’t have it.

(You will notice that Mayor Speer already knows of the HUD changes. He also makes it clear he is “in favor of going for the CDBG program for this next cycle.”)

Mayor Speer
I have been looking at this since 2013. Stanley Kurtz does great reporting on what is going on with this fair housing rule. They have a gag order against Westchester County. He can’t even speak to his people about what they are doing up there. I am by nature opposed to any kind of Federal zoning. I am in favor of going for the CDBG program for this next cycle.

We are part of the Passaic County CDBG jurisdiction. In Passaic County you have four cities that go on their own for CDBG funds. There are 12 towns that are in the jurisdiction of Passaic County. We are going to be grouped in whether or not we sign this agreement. They are going to be producing a document, an AFH document for this next round. That is going to discuss the demographics of the Borough of Ringwood and its housing opportunity. In the previous three-year cycle of CBDG, it was called an analysis of impediments. I am not too concerned about them forcing development down our throat especially when we have COAH. We have to try and meet some kind of standards somewhere. The Highlands Council came out and told us we have three or four buildable lots in Ringwood.

Al Frick, Wayne, NJ
I have been following HUD for the last eight years. I grew up in the city and I moved to the suburbs. If you have taken CDBG grants before, everything changed in July 2015 with the affirmative fair housing was always in there. They added 377 new pages. In one section they say we won’t change your zoning, but if your zoning happens to conflict with the Fair Housing Act, then that is of concern. They never really spell out for you what the Fair Housing Act now happens to control. Once you sign on the line, you sign a contract that you will do whatever the plan turns out to be for that Fair Housing Assessment.

The data that you must use is HUD data. You must invite participation from the community, civil rights groups, community developments, community development organizations and developer. When these people are in on your plan, they have to be in for every step of the way. If they don’t like what you are doing, they concede. There are a lot of strings attached to this that was not attached before. You have the zoning issues, the call for participation from outside groups, and the identification of solutions. HUD will provide you with a list of 40 barriers that you should consider. Once you take the money you can’t get out of it.

(Al makes an important point below. The wording in the AFFH ruling is accurate, but somewhat deceptive. Actually,HUD wants nothing to do with a community’s zoning laws. However, to affirmatively further fair housing, grantees may be required to ignore or change them themselves. In other words, HUD is in control.)

The rule does not impose any land use decisions or zoning laws on any local government.
However a paragraph later says, but we will assist recipients to adjust their land use and zoning laws to meet their legal obligation to Affirmative Fair Housing.

Nancy Masasi Wanaque, NJ
Some of the things that Wanaque said is we want the funding for our roads and sewers. We don’t use it for housing. It doesn’t matter. If you sign up with a resolution, you are agreeing to follow all the rules of COAH and the AFH, you are going to fill out this application. You are providing them with the information that you are not compliant with these new regulations. This Council is from a region, not local people. You can have civil rights groups from other areas to come in to your town and tell you what they think you will need. I would ask you to consider not voting for it until you have thoroughly vetted the entire process and know what is going on.

Connie Hernandez, 18 Pequot Terrace
I am against the HUD program. A long time ago there was talk about putting apartments on top of the hopping areas. We don’t have the infrastructure for a lot of additional kids and transportation. Can you consider not voting on this resolution tonight?

(As you can see, the Council moved to delay the vote and study the HUD issue further.)

On a motion by Councilman Marsala, seconded by Councilwoman Schaefer the Council tabled Resolution 2016-171 I order to educate themselves in the changes to CDBG.

Ryan Bolton, 28 Glen Road
Thank you for having the public comment section going on for so long, he also thanked the Council for scheduling the public hearing dedicated to the petition.

At the next meeting in August, the Council voted on the HUD issue. Two members, who were also Passaic County employees, abstained. The remaining four attending Council members voted unanimously to reject accepting HUD money through the County.

This is what happens when informed public officials and community members work together.