Residents shut out of homes seek help

Town, builders at odds over age restrictions

at new developments

BY SETH MANDEL

Staff Writer

A disparity between township and federal laws has left several residents without a home after they sought to move into new adult communities in Monroe.

Developers Toll Bros. and Kalian Cos. began selling homes in the new developments, Regency at Monroe, on Route 522, and Encore, Route 33, both age-restricted communities. Because some of the buyers are under the age of 55, township regulations make them ineligible to live in those homes. Before they could move into their new homes, they were informed that they were not allowed.

One of those buyers, Marylin Gross, said she sold her previous home because she was told by the developer that, although she was under 55, she could move into the retirement community.

“The builder got us into it, whether right or wrong,” Gross said. “I’m not debating who’s right or who’s wrong here; I don’t really care who’s right or who’s wrong here. All I know is that I don’t have a home.”

Gross was among several residents who came to the Township Council meeting Monday night to ask for help with the situation, which has resulted in a lawsuit filed by the two builders against the township.

Monroe’s ordinance governing planned retirement communities (PRC’s) states that residents must be at least 55 years old, Councilman John Riggs said. He noted that the developers are aware of that law, but since federal guidelines allow some younger residents to move into age-restricted communities, the builders are now suing the township over its strict enforcement of the ordinance.

“When we approve a development, it is approved conditional upon those ordinances,” Riggs said. “These developers have chosen to interpret federal guidelines and laws differently, and they have filed a suit against us to try and have our ordinance overturned.”

Riggs said the developers chose to follow the federal housing guidelines, which state that if a community is designated as housing for older persons, 80 percent of the units must be occupied by residents over the age of 55. The federal law has no age restriction, however, on the remaining 20 percent.

“They want to be able to do whatever they want with 20 percent of the homes, and that’s not a PRC,” Riggs said. “The integrity of a PRC is sacrificed if you do that. They are saying that 80 percent must comply and 20 percent doesn’t, and that’s not the way we interpret the ordinance.”

Speaking to the council Monday night, Gross said there are many other people who bought homes in these developments and now find themselves in the same situation.

“Basically, what I want to know from the township is if there is going to be any consideration given to the people who are under contract that really didn’t get themselves into this mess?” Gross said.

Mayor Richard Pucci responded that the situation was the fault of the developers and not the residents trying to move in. He said the township will make sure those residents are permitted to move into the homes they have purchased.

“You’re not in opposition to us,” Pucci said. “And anyone in this audience, no matter what your situation is, whether in fact you currently reside in one of the retirement communities with a ‘question mark’ on your age ... or for those who may be currently in the process of closing on homes, both of you are in a position that we have an obligation to rectify.

“We believe, unequivocally, in your cases, that those developers have erred,” the mayor said.

Greenbriar at Whittingham resident Rod Kober said that residents in this predicament should be permitted to move into the homes they purchased, but other PRC’s should continue to sternly enforce their age restrictions.

“I certainly don’t want to imply that there’s any problem that should prevent people who, in good faith, contracted to buy a home and are now caught in the thrall that’s been made by the developer or the marketer trying to capture whatever market advantage they may have perceived,” Kober said.

“However,” he added, “I do want to call to the council and the mayor’s attention that whatever is done should not impede or impair the integrity of the age limitations of the communities that do exist, and it’s not without penalty if it does.”

Kober reminded the council that, when faced with similar circumstances, Freehold’s Raintree development was forced to open for general sale to all ages.

Pucci said that Monroe’s five pre-existing PRC’s — Rossmoor, Clearbrook, Concordia, Greenbriar at Whittingham and the Ponds — will remain unaffected by the situations with Regency and Encore.

“I want to emphasize that the five communities, the longer-term communities that are here, under no condition and no circumstances are we ever going to change that restriction,” Pucci said.

Howard Deutsch, who purchased an Encore home, said the developers have avoided contact with residents. Several residents present on Monday asked the council when they can expect the matter to be resolved.

Pucci said that he and the council would meet in closed session immediately following the meeting, and that he hoped to have a solution within a month.

“I can assure you that when we say ‘fast track,’ we’re not looking for this to carry for months, we’re looking for this to be resolved sooner rather than later,” Pucci said. “We’re going to move on it quickly.”

Encore resident and local attorney Steve Foyerstein said the township should avoid litigation, if possible, and resolve the matter outside the courts.

“I have always believed that litigation is the failure of reasonable people to come to a reasonable conclusion,” Foyerstein said. “And I would urge that you could find a political solution, not a litigative solution. It will save a lot of time, money, and a lot of personal anguish on the part of your citizens.”

Township Attorney Joel Shain said that if it was up to the township, there would be no litigation, though it seems the developers have other plans.

“On Friday, I was directed by the mayor to meet with the attorney representing the two developers in question to personally ask them on behalf of the mayor not to file an action, because this body was going to meet tonight and discuss it, and we would come back to them Tuesday,” Shain said. “That personal request by the mayor was rejected.”

Resident Philip Spiegel said that with demographics changing around the country, the township should consider allowing a potential buyer who is in a financial position to own a home in a retirement community, but is just under the age limit, to purchase that home regardless.

Councilman Henry Miller said that although some residents may want the ordinance amended to include slightly younger buyers, they may not fully understand the situation.

“I think if a vote were taken right now on the present law, the majority of our citizens in the PRCs would be in favor of leaving it alone,” Miller said. “You’ve got to realize that there’s a great deal of security in an age-restricted community. There’s also a way of life that’s there that people cherish.”

One resident asked how the developers could get approval for a development if they were planning to circumvent local laws.

Pucci responded that the developers were granted approval under false pretenses. The developers applied for permission to build a PRC, but then failed to follow the rules.

“I’m just going to send this message out: For anyone to represent, as a developer or attorney, that the federal guidelines are the law when local ordinances are very restrictive, then they’re not being truthful,” Pucci said. “It’s that simple.”

Council Vice President Gerald Tamburro said there are several types of PRCs, but none that allow for the developers’ intended use in this situation.

Councilman Irwin Nalitt said council members received e-mails from concerned residents prior to Monday’s meeting, but due to pending litigation were unable to respond to those people.

“We don’t want you moving into town thinking that your council doesn’t care about you,” Nalitt said.

“And incidentally, with all the talk of the different types of PRCs, I think I’m going to campaign for a super-senior PRC,” he joked.

Pucci said the PRCs are beneficial not just to those who live within them, but to residents of the entire town, and the council would do everything it can to protect them.

“The budget can hold the line in Monroe generally better than most communities because 50 percent of our build-out is retirement communities, and now the prices you are paying for homes are substantially more even than they were 15, 20 years ago, as far as retirement community build-outs,” Pucci said.

“So you’re an important part of our future as far as property taxes, services, and human resources,” he said.