Borough Steps in to Pay Outstanding Mortgage and Fix Elizabeth Barabash Manor

NEW PROVIDENCE, NJ – The Borough Council approved two resolutions regarding the Elizabeth Barabash Manor. The first approved resolution authorizes the borough to pay the outstanding defaulted mortgage on the building and the second is to approve the needed upgrade projects for the building.

Councilwoman Nadine Geoffroy gave some background information regarding the facility which is a 100% affordable age restricted development consisting of 22 low-income rental units. The Church Coalition for New Providence Affordable Housing Corporation constructed a building on borough owned land in accordance with a lease with the borough in the 1990’s and obtained a mortgage to do so. However, the Church Coalition has defaulted on said mortgage and is not in a position to service the loan.

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The borough has a balance of funds exceeding $1,200,000.00 in its Affordable Housing Trust Fund. In October 2023 the borough amended its Affordable Housing Trust Fund Spending Plan to include an appropriation of $550,000.00 from the same fund to make payments for the mortgage and repairs of Elizabeth Barabash Manor. The borough intends to preserve the Manor’s status as a 100% affordable age-restricted development.

The total amount required to pay off the mortgage held by Citizens Bank is $430,621.55. The Superior Court of New Jersey, Union County authorized the payments from the Affordable Housing Trust Fund totaling $550,000.00 for the mortgage and needed repairs for Elizabeth Barabash Manor in March 2024.

The borough is planning to use close to $75,000 for Manor upgrades that include roof and elevator repairs as well as replacing stoves, microwaves, and refrigerators in the units.

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