A battle for affordable housing is brewing in the Ivy League city, as officials try to figure out how to meet housing needs without destroying centuries-old land.
Municipality of Princeton, NJ, council member Mia Sacks tells Realtor.com® that people who live in the suburbs can feel threatened by the apartments, which has been controversial.
At issue: a proposed development on the nearly 5-acre site of Princeton Theological Seminary’s former Tennent Roberts Campus. The former seminary was founded in the early 1800s.
The planned development calls for a 238-unit apartment complex with a swimming pool and rooftop terrace—no more than four stories high. Proposed rent is expected to run $3,536 for a one-bedroom to $4,992 for a one-bedroom with a balcony.
“There is no lack of familiarity in Princeton with the city’s rich history. That is what makes the city unique. That goes especially for this neighborhood, which is in the heart of the Princeton Historic District, which has been listed on the National and State Registries of Historic Places,” Sean Wilentza Princeton University history professor, tells Realtor.com.
Concerns are about the density of development and whether the current road infrastructure can handle the traffic.
Some feel that the development will not provide enough housing for low-income people despite state laws requiring at least 20% of the apartments to be reserved for low-income people (in this case, about 48 units are planned to be offered).
“Princeton, as a whole, is very committed to affordable housing,” Sacks said. “Most people in Princeton want to live in a racially and economically diverse community. We are already an international community because we have a university here.”
Sacks added that officials were focused on integrating new units into the city using a “smart growth concept.”
“This means identifying areas in the city center that can be reused properly or rebuilt to use the existing municipal infrastructure, sewage, roads, electricity, etc.,” he said.
Wilentz argues, “Regarding this specific project, and touching on ‘smart growth,’ the municipality presents this project to the public as a large affordable housing program, without saying anything about 80% luxury housing.”everythingfor affordable housing, see?!’ I have met Princetonians who sincerely believe that the Stockton Street proposal contains 238 affordable units.”
The cost to taxpayers is also a concern.
Wilentz says developers will need a Payment in Lieu of Taxes (PILOT) agreement.
“The Stockton Street PILOT project is $30 million to the developer, at the direct expense of Princeton taxpayers, and most of all, the poor towns of Mercer County,” he said.
However, Princeton officials say the proposed project could not be developed to these levels without PILOT’s help.
Princeton’s financial adviser estimates that Princeton will gain more than $48 million over the life of the pilot, and the property has historically been tax-free without paying Princeton, the district or Princeton Public Schools, according to an attorney who prepared the project sheet on behalf of Princeton council members.
“We’re not going to solve the housing problem by using single-family lots,” Sacks said. “There needs to be zoning changes that allow for more duplexes, triplexes, smaller lots with additional units, yes, and larger multi-family apartments.”
The council is trying to come up with an agreement on large apartments. Sacks says the answer is not to acquire and build on farms, but rather to build closer to the city. (The Stockton project site is about a five-minute walk to the train station and downtown.)
“Foot traffic is important. Mom stores and Main Street stores can’t compete in the Amazon economy unless there’s a lot of traffic,” Sacks said.
10 year plan
March 15 marked a deadline in New Jersey where each municipality in the state was required to share a 10-year plan to build affordable housing. It is part of the Mount Laurel Doctrine that was put into law in 1975.
The New Jersey Supreme Court says municipalities cannot use zoning laws to exclude low- or moderate-income families from living within their boundaries.
Every decade, New Jersey municipalities are expected to share their plan to build enough affordable housing. Oftentimes, private developers will come in, buy land, and build apartments where 20% of the units are reserved for low-income families.
But not everyone is happy with the requirements. Several towns and cities in the Garden State have taken their dispute all the way to the US Supreme Court but were rejected, most recently, by the high court.
“The problem is that no one wants it in their neighborhood. They want it in terms of ideas, but not in practice, and another problem is the lack of understanding of the economics of how to build houses,” said Sacks.
He explains that as of 2021, about 700 units have been built and are in use. He adds that some are 100% affordable and others are mixed, meaning the residential project includes a percentage of units set aside for low- to moderate-income families.
