Berkeley Heights pulled a resolution from its Tuesday, Oct. 6 Town Council agenda that would have let affordability restrictions expire on 14 housing units at Villas on the Park.

Resolution 2026-316 proposed a settlement agreement between the township and Springholm Drive Holdings, which owns and operates the 14 units. Under the deal, Berkeley Heights would release the affordability controls as they expire and eventually discharge the original Developer's Agreement, NJ21st first reported.

The units were built to satisfy Berkeley Heights' "Prior Round" of affordable housing obligations, covering 1987 through 1999. Each carried a 30-year affordability restriction starting from the date it was first occupied. Those terms are now running out. The first unit's control period ended Sept. 23, and the last will expire Oct. 31, according to the settlement.

Springholm Drive Holdings notified the township that it intends to drop the income restrictions as they expire. The township decided not to pursue an extension, based on advice from its lawyers and consultants, NJ21st reported.

The settlement would also gradually raise what the units pay in condo fees. The units now pay 25% of market rate. That amount would increase to the full rate over three years.

After the agenda was posted, the township amended it and pulled the resolution. No reason was given for the change, and no date was set for the resolution's return.

NJ21st reporter John Migueis reported that his outlet reached out to the mayor, council members, the town administrator and candidates about the resolution. No responses had been published as of Saturday, Oct. 10.

Several questions remain unanswered. The resolution contained no information about how many of the 14 units are occupied, what happens to current tenants' leases once controls lift, or what protections apply afterward. It also did not address whether losing these 14 units affects Berkeley Heights' affordable housing inventory or whether they must be replaced.

The stakes extend beyond Villas on the Park. The Berkeley Heights Planning Board approved the township's state-required fourth-round affordable housing plan on June 25, 2025, and the Township Council approved it June 26, 2025, according to the township's website. That plan sets a prospective need obligation of 240 new affordable units.

No date has been announced for when Resolution 2026-316 will return to the council agenda.