The Princeton Council has approved a developer’s agreement with the PCH Development Corp. to build, own and manage a 35-unit affordable housing development at 303 John St.
The 1.1-acre property is owned by the Municipality of Princeton, and is occupied by the town’s Department of Public Works. Plans are in the works to relocate the DPW.
The site is included in the town’s Fourth Round affordable housing obligation, which covers the period between 2025 and 2035. All of the units at the John Street site will be earmarked for very low-, low- and moderate-income households.
A one-person household can earn up to $29,250 to qualify for a very low-income unit, and up to $49,200 for a low-income unit. A one-person moderate-income household can earn up to $78,720.
For a four-person household to qualify for affordable housing, it may earn up to $42,150 for a very-low income unit and up to $70,250 for low-income unit. A four-person household can earn a maximum of $112,400 to qualify for moderate-income housing.
Princeton will sell the property to the PCH Development Corp. for $1, under the condition that it builds a 100% affordable housing development. The agreement states that those units will remain available to very low-, low- and moderate-income households for at least 40 years.
The sale is contingent upon PCH Development Corp. receiving necessary financing and other approvals for the development. It will not take place until the developer is ready to close on all financing and to start construction on the project.
The town has also committed to providing $50,000 for additional site demolition and/or environmental remediation. The money would come from a funding ordinance or from the town’s Affordable Housing Trust Fund.
Money in the Affordable Housing Trust Fund is generated primarily by development fees levied on new residential and commercial developments, and by financial contributions from developers in lieu of including affordable housing units in a housing development.
The John Street development is subject to a separate agreement with PCH Development Corp. for a payment in lieu of taxes (PILOT) of 6.28% of the project revenues – after accounting for the cost of natural gas, electricity, heating, fuel, water and sewage charges.
The PCH Development Corp. is the development arm of Princeton Community Housing, which itself was formed in 1967 to provide affordable housing.
PCH is a non-profit organization that owns, operates and maintains 491 affordable housing units. Its first development in 1975 was Princeton Community Village on Bunn Drive, which is open to families.
PCH developed Elm Court and the Harriet Bryan House, off Elm Road. They are set aside for low- and moderate-income senior citizens, and adults with disabilities.
It manages 70 affordable units of the total 280 units at Griggs Farm, off Cherry Valley Road, as well as units scattered throughout the town – including Merwick Stanworth on Bayard Lane.
