Montclair Spent $116K to Administer Home Improvement Program

The Township of Montclair paid a total of $116,148 to administer a Home Improvement Program from its start in 2021 through July 2024. Six homes participated in the program. The total payments to improve all six homes were $175,377. The program is funded by the Township’s Housing Trust Fund.

Montclair hired Community Grants, Planning & Housing, LLC (CGP&H) in 2020 to administer the Home Improvement Program. CGP&H and the program came under scrutiny when First Ward Councilor Erik D’Amato raised questions about the program and a payment to improve a Grove Street home.

“Speaking for myself it seems very difficult to justify program overhead of 66% — two thirds! — not even counting the soft costs we incur internally to have the program in place,” D’Amato told the Local on Tuesday.

“And I still struggle to understand how we could have a home improvement program that isn’t means tested for wealth when just owning a home literally makes you a millionaire by default, with Zillow right now saying the average home value is more than $1 million, and up 10% in the last year,” D’Amato added.

Tonight, the council has a resolution on its agenda “authorizing the use of competitive contracting for consulting services in connection with the Township’s professional services as Affordable Housing Administrative Agent, Home Improvement Program Administrator, Affordable Housing Attorney and Licensed Site Remediation (LSRP) Professional.”

John Burton, CEO of CGP&H, previously stated that his firm had given notice to Montclair that it would longer be providing administrative agent services for affordable housing administration because Montclair has a local preference for affordable housing applicants.

Burton told Montclair Local last month that CGP&H planned to continue on as the administrator of the home improvement program should the municipality choose to retain them again in 2025.

“We are happy to continue what has been to date a successful program,” Burton said. “For the affordable rentals / sales services, we are planning to stay on until a replacement is found and we can help with the transition to the next provider in order to minimize disruption to affordable housing activities in Montclair.”

Six Properties Improved Since 2021

The Local asked Burton about questions raised about the cost of administering the program to rehabilitate six homes, and whether Montclair was consistent with other municipalities CGP&H serves, in terms of participation and cost.

“Absolutely. Typically we see program funding limits of $20,000 to $25,000 per unit, and many projects go up to that limit or even exceed it with special needs waivers. We provide these services all over New Jersey and these project costs are typical,” Burton said.  “In terms of our fees for administration, we have a standard fee structure that is basically identical with every municipal client we work with in New Jersey.”

From the program launch in early 2021 through July 2024, Burton confirmed six properties participated: 2 Wilfred, 51 Christopher, 104 Valley Road, 29 Windermere, 155 Valley Road and 104 Valley Road.

According to Burton, 104 Valley, located in Montclair’s Third Ward, had a renter-occupied unit that was eligible to participate in the program.  According to a township resolution, the fund paid for $31,727.51 in repair costs to 104 Valley.

“If the renters are certified as income-eligible for the program, then home improvement repairs on the renters’ units can be made through the program. There may be other units in the building, but the program funding goes toward income-eligible renter’s units,” Burton said.

Montclair’s Home Improvement Program

When Montclair announced the program in early 2021, it was designed to assist properties occupied by very low-, low- and moderate-income  households to correct existing interior and exterior health, safety, and code violations.

Funds may be used only for work and repairs required to make the house code standard, conserve energy, remove health and/or safety hazards.

According to a report by the planning office, Montclair’s Housing Trust Fund has collected $4 million in fees since 2002. Seventy-six percent of its spending went to housing programs and rental assistance. The rest paid for administration. 

The trust fund is is funded mainly by development fees paid to the township by residential and commercial developers. Developers pay 1.5 percent of the assessed value on a house, and 2.5 percent of the assessed value on a commercial building. Other sources include income from rent on township-owned housing units and proceeds from the sale of affordable units.

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