BARNEGAT – Five years ago, Paramount Homes announced construction of its fourth phase of homes at its Escapes Ocean Breeze 55+ community. Now, some eager and frustrated prospective home buyers say they need the township’s help so they can actually take up residence.
The luxury retirement development spans over two different towns. The beginning phases of the project began in Manahawkin, with the remainder of the new homes under construction in Barnegat.
At least nine buyers have signed sales contracts and are patiently waiting to close on their houses. Two appeared at the July Barnegat Township Committee meeting with hopes of dissuading the municipality in its refusal to issue certificates of occupancy (COs).
Ray Bragg, who currently lives in Jackson, said the home he contracted for is on the corner of Daybreak and Milky Way Drive in the development. He entered into the sales agreement back in May of last year.
“They said the house would be ready in approximately twelve months,” said Bragg. “They then added on a six-month extension based on supplies, materials, and labor issues.”
Bragg said he found it reasonable there could be some governmental delays in getting approvals. As a civil engineer working for a government agency himself, Bragg said he understands the bureaucratic process.
Nonetheless, when Bragg questioned Paramount about completing his home purchase, he found himself taken completely by surprise.
“They told me the town was not allowing them to issue any more COs until 21 affordable housing units were completed,” Bragg shared. “The latest update said things will be done in the early part of 2023. What does that mean? Am I closing in January – in April? I have a life here.”
According to Bragg, there are approximately 29 homes under construction on Moonlight Drive, Milky Way Drive, and Daybreak Drive. Three appear ready to move in, and six are almost completed.
While Paramount Homes asserts the affordable homes will be completed in the next six months, no one can know for sure. In the meantime, other issues continue to surface.
Bragg contended there’s not even electricity set up in the area and questioned why town officials issued building permits without completion of the affordable housing units.
“I understand the requirements of the township ordinance to have affordable housing,” Bragg stated. “However, this developer’s requirement is creating hardship for myself and several other future Barnegat Township residents.”
Illene Miller told the governing body the home she signed to purchase is ready for her to move in. She knows it’s not her fault that she can’t inhabit her new residence and expressed her frustration.
“All I wanted to do was buy a house that I thought would be appropriate for me after losing my spouse,” said Miller. “In addition, I’m concerned that I have financial obligations…I lost my mortgage rate as a result of the delay and have no idea what the mortgage rates will be if they’re telling me the least, they (Paramount) can offer is the beginning of 2023.”
Township Attorney Christopher Dasti explained that the township could not hold up building permits by law. He also said local authorities met a year ago when it appeared the developer was not going to make the forecast and schedule.
“The Affordable Housing regulations are state regulated,” clarified Dasti. “It’s not necessarily a township ordinance, but an adoption of state regulations.”
Dasti said the developer knew of the requirements when they received approvals five or six years ago. Now, the township has concerns the developer is not planning to honor the schedule associated with the affordable housing construction.
Both Township Administrator Martin Lisella and Dasti said they have communicated with the developers and their attorneys regarding the problem.
According to correspondence directed to Lisella, Paramount Homes representative Eli Bleeman acknowledged their requirement to build a total of 56 affordable homes. The schedule calls for half to be constructed after completion of a certain number of the market rate homes.
Bleeman’s June 5th letter asserts the developer is diligently working on completing the affordable homes, and that seven are actually occupied. The rest are in various stages of construction, with the developer providing reasons for the delays.
“While obviously the delay in delivering the market rate homes impacts Paramount Homes business and reputation,” wrote Bleeman. “The greater concern is the impact to the buyers of the market rate homes. This inability to obtain certificates of occupancy is creating a great hardship for the buyers of the market rate homes.”
Bleeman requested that the township provide relief from the affordable housing schedule so that certificates of occupancy could be issued to nine market rate homes he said would be completed by June.
As township attorney, Dasti responded to Bleeman and the developer’s attorney, stating that the failure to adhere to the delivery schedule was a “direct result of the inactions of Paramount Homes.”
Additionally, Dasti said the developer had allowed countless permits to expire and has failed to post required bonds and inspection fees. The township attorney’s June 15th letter also points out there is currently no power available where the affordable homes are scheduled for construction. Atlantic City Electric confirmed to local authorities that Paramount has allowed the permits to expire.
“The Township cannot and will not allow a developer to avoid the requirements of the affordable housing schedule,” wrote Dasti. “Paramount, like any other developer, must comply with the completion schedule for market rate and affordable housing units.”
At the Township Committee meeting, Dasti said he could not go into extensive discussions with the prospective homeowners, as it represented potential litigation. Dasti said the town welcomed new residents and wanted to help.
“I can tell you that Township’s professionals, at great time, expense and aggravation, have tried to hold these people’s hands to tell them what they have to do,” said Dasti. “…I can tell you that we’ve spun our wheels on this unbelievably. You would think that a good developer that owns a lot of land has a good business mind and people on his staff to help him.”
Lisella said the Township has been trying to rectify the problem for at least the last six months. The suggestion that a bond could be posted is prohibited by law.
Requests for comment from both Paramount Homes and their legal counsel went unanswered.
Market rates for homes in the development currently start in excess of $400,000, with many exceeding $600,000.
