Township Breached Tax Abatement Agreement with Housing Authority By Imposing Fee for Sewer Service

摘要

The township of Montclair breached its tax abatement agreement with a housing authority by subsequently imposing a fee for sewer services separate from the "municipal services" covered under the agreement, ruled the New Jersey Superior Court, Appellate Division. (Union Montclair Housing Associates v. Township of Montclair, Docket No. A-2792-09T1, 2011 WL 1225851 (N.J.Super A.D.), April 4, 2011) Plaintiff Union Montclair Housing Associates (UMHA) entered into a 50-year tax abatement agreement with defendant township in 1978, substituting an annual charge for municipal services, based on a percentage of UMHA's gross revenues, for payment of property taxes. The agreement did not define municipal services, nor is the term defined by state statute.