The township will not be getting the $639,633 it sought, but potential housing credits.
HOPEWELL TOWNSHIP - Hopewell Township has claimed victory in their suit against the state of New Jersey seeking reimbursement of $639,633 they refunded to a hospital company over affordable housing.
The township will not be getting the money, but potential housing credits. The number of credits is a separate issue pending in court, Mayor Harvey Lester said.
"Upon being sworn in as mayor in January, one of my first priorities was to pursue this long-neglected case," Lester said in a statement. "It is gratifying that the Court agreed with our analysis that the taxpayers of Hopewell Township were entitled to compensation and has crafted a way to do so that benefits the Township in our current litigation over affordable housing."
The township sued the state earlier this year, demanding it be reimbursed $639,633.75 for money it refunded to Capital Health in 2010.
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In 2008, state law required that Capital Health, as a developer of new, nonresidential construction for the hospital it built in the township, contribute to the township's affordable housing fund.
But the following year, the New Jersey Economic Stimulus Act of 2009 imposed a moratorium on the fees, entitling developers to a refund.
Lester said the township's case was found to meet prerequisites for "alternative relief" since the state did not have the money for reimbursement.
Mercer County Superior Court Judge Mary C. Jacobson also ruled that the number of affordable housing credits related to the case will be folded into the township's Affordable Housing Declaratory Judgment case, which is still pending, Lester said.
Jacobson said the exact number of credited affordable housing units would be determined at a later date, Lester's statement said.
Lindsay Rittenhouse may be reached at lrittenhouse@njadvancemedia.com. Find NJ.com on Facebook.
