The Hopewell Township Committee took a series of formal steps this week to advance a proposed 70-unit affordable housing development on the Weidel tract, positioning the project to compete for state funding as part of the township’s fourth-round housing plan.
The actions — including a resolution of need and authorization of a development agreement with Walters Cornerstone Development — are required to move the project forward in the state’s tax credit application process.
Project moves forward to meet funding timeline
Township Attorney Steven Goodell said the resolution is a prerequisite for consideration by the New Jersey Housing and Mortgage Finance Agency.
“It needs to have a certified resolution from you saying that yes, this project is needed to help us meet our affordable housing requirement,” Goodell said during the meeting.
The proposed development would bring 70 units of 100% affordable housing to approximately 10 acres of the Weidel property, with the township contributing land and a $1.8 million loan from its affordable housing fund to support infrastructure, including a sewage treatment system and access roadway.
Mayor David Chait described the approvals as part of a coordinated process tied to earlier discussions around financing and long-term planning.
“It’s an important part of our plan, so we definitely need it,” Chait said before the vote.
Why a PILOT is part of the project
As part of the approvals, the Township Committee is also advancing a Payment in Lieu of Taxes (PILOT) agreement — a financial structure commonly used to support affordable housing developments.
Unlike PILOT agreements for market-rate projects, which are often tied to higher rental revenue, officials said the structure for the Weidel project reflects the limited income generated by 100% affordable housing.
During the meeting, township officials noted that because rents are restricted under affordable housing guidelines, the project is not expected to generate the same level of revenue as a market-rate development. As a result, the annual service payments to the township under the PILOT are comparatively modest.
The PILOT structure is designed to make the project financially viable while still providing a predictable revenue stream to the township, particularly as the development pursues competitive state tax credits.
Officials said this type of agreement is standard for fully affordable projects, where controlling costs is critical to securing funding and keeping rents at required affordability levels.
A significant piece of the township’s housing plan
Committee members emphasized that the project represents a major component of the township’s broader affordable housing strategy.
“This is almost a quarter of our entire fourth-round obligation,” committee member Kevin Kuchinski said, noting the project could also qualify for additional “bonus credits” under state housing rules.
The development is part of what officials have described as a multi-pronged approach to meeting state-mandated affordable housing requirements, with the township pursuing multiple sites and strategies simultaneously.
Kuchinski said the township has worked to position the project competitively for funding, including selecting an experienced development partner.
“We’ve had the opportunity to vet the Walters group… this is what they excel at,” he said. “This application at this point is on track to be a perfect score.”
Planning Board laid groundwork for proposal
The Township Committee’s actions follow recent Planning Board review of the project, including the advancement of a new affordable housing zoning district tied to the Weidel tract.
At its April 23 meeting, the Planning Board determined the proposed AH-1 district is consistent with the township’s master plan, clearing a key hurdle for the project to move forward.
Planning discussions also addressed building height, layout, and how the development would fit into the surrounding area, with officials noting that final design details will be refined during site plan review.
Next steps and upcoming review
The Township Committee is expected to continue its review of the project and related ordinances at its May 18 meeting, where additional details and potential next steps in the approval process are likely to be discussed.
