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Shongum Lake Project Receives Overwhelming Support from Property Owners, Loan Approval Imminent
Update Regarding Proposed Project at Shongum Lake & Special Assessment
The Shongum Lake Property Owners Association (SLPOA) has received a conditional loan of $5,000,375 from the New Jersey Department of Environmental Protection (NJDEP) for the purpose of dredging certain areas within Shongum Lake.
In order for the project to move forward, Randolph Township requires that SLPOA show that a minimum of two-thirds of the approximately 801 properties around the lake are in favor of the project and the special assessment that would come with it. On February 9th, the township received 538 petitions from property owners in support of the project, fulfilling the requirement for the township to consider approving the co-borrower agreement and special assessment ordinance.
The loan from NJDEP is repayable at 2% interest over 20 years and requires Randolph Township to act as a co-applicant and co-borrower on the loan. The law also requires the township to impose a special assessment on all properties that benefit from the project, which in this case would be the approximately 801 properties that have a license or right to use Shongum Lake. The assessment would be used to pay off the loan over the 20-year period.
Special Assessment of Shongum Lake Properties: A Guide
Randolph Township and the Shongum Lake Property Owners Association (SLPOA) have recently announced a project to dredge Shongum Lake. With the project comes several frequently asked questions regarding the special assessments of the properties that have a license or lake rights to use Shongum Lake.
The special assessments are determined by estimating the benefit or enhancement value due to the lake dredging for each property. A preliminary appraisal report prepared by Holzhauer & Holenstein, LLC was used to estimate the anticipated benefit and calculate the preliminary special assessment for each of the 801 properties included in the project. The final assessments will be conducted once the project is completed and the total costs are certified.
The special assessment will be billed in 20 annual installments and will be due within 60 days of confirmation of the assessments by the Randolph Township Governing Body. The first installment is due within 60 days of confirmation, while subsequent installments are due within 30 days after billing. Property owners are billed directly by the Township and have the opportunity to pay off the assessment balance at any time.
In the case of missed payments, the full amount of the assessment becomes due and the Township will draw interest at the rate imposed upon the arrearage of taxes in the Township. The Township has the right to waive default as per the law.
For those selling their properties, an "unconfirmed assessment" will be reflected on any tax and assessment search before confirmation of the assessments. After confirmation, the full amount of the balance of the assessment remains a first lien on the property if not paid in full, and will be noted on the tax and assessment searches. However, the liability to pay the balance can be negotiated between the buyer and the seller.
It's important to note that property taxes will not increase as a result of the special assessment. The special assessment and property assessment are separate entities and will not affect each other.
This information serves as a guide for property owners regarding the special assessments for the Shongum Lake dredging project. For further questions and concerns, residents are encouraged to contact Randolph Township or the SLPOA.
