(TOMS RIVER, N.J.) --- Councilman Robert Bianchini called out the township for taking advantage of affordable housing funds.
During the July 29 special meeting, Bianchini drew attention to the fact that individuals are buying and ultimately renting out affordable houses at higher market values.
“A lot of people are buying them and renting them,” Bianchini said, “which they’re not allowed to do, and they’re making money and putting it in other places.”
In the state, Affordable Homes New Jersey sets affordable housing regulations, and nothing explicitly states that it is illegal to buy and then rent an affordable home. The FAQ page explains that landlords may increase rent each year by up to 5%. The increase must be added at lease renewal, and the state sets the amount.
(Photo: Councilman Robert Bianchini calls out Toms River Mayor for alleged affordable housing scam)
Bianchini noted that he has visited some neighborhoods and ultimately found that residents in affordable housing have been paying nearly $1,500. The councilman then pointed out that this is fraudulent behavior by the landlords, claiming that these individuals are “taking advantage of this system.”
“This is just going to get worse by the minute because now you’re going to have more affordable houses,” Bianchini said.
Then Bianchini raised a concern about the new affordable houses being considered “starter homes,” and that they do not sell them but instead “turn them around and rent” them out.
“There’s a big scam that’s going on here, and all we’re doing is just ignoring all of that,” Bianchini said.
Rather than showing concern for the illegal township activity, Mayor Daniel Rodrick responded by telling Bianchini that he “should really go to the prosecutor’s office.” Rodrick explained that if Bianchini knew someone was scamming the affordable housing system by renting it out, he should take further action and bring it to attention.
This is the second of three reports from this meeting; the first was released on Monday, and the last on Friday.
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