SP Council Examining Senior Complex's Financial Shortfall

The Scotch Plains Council is trying to determine exactly what the township's financial responsibility is to the Senior Citizen Housing Corporation, which is facing a $150,000 deficit.

Councilman Kevin Glover, liaison to the corporation, told fellow council members this week that the southside senior complex is facing some serious "financial concerns" and that it considers the township its "backstop" for any financial shortcomings it may have.

"We're meeting with the housing corporation again this week and with the attorney to determine what we're responsible for," noted township manager Christopher Marion. "Then we'll come back to the council with an idea of what our obligation is going forward."

Glover called the corporation's woes the result of "structural problems," partly due to the fact that they can't raise rents above a certain level and some are based on income and ability to pay. The councilman said in the past the corporation used surplus interest on bonds to help, but that money has now gone away.

"Without sounding crass, what advantage does Scotch Plains get from having that here?" Mayor Nancy Malool asked, noting that the complex is tax exempt and township residents don't get first preference to the housing.

The mayor said that because outside funds were used to build the complex, she thinks the corporation "should be looking to state or federal funds to help keep it afloat."

"But what's on the books now is us," Glover said, "and that's something that will potentially come back to haunt us."

The township manager noted that they've had some "very positive conversations" with the corporation so far, and that they're working to take a proactive approach in the interim. The township is asking the board to find short term solutions to cut costs, and then build a new business plan for the long term.