A New Jersey man who was praised for trying to save an 82-year-old neighbor from a fire this summer has now been charged with her murder.

Exclusive video shows the moments police arrested 70-year-old William Ahle on Wednesday. The footage from around 5 a.m. shows a team of heavily armed law enforcement officers approach Kempshall Terrace in Fanwood. Moments later, Ahle is seen walking out in handcuffs.

The Union County prosecutor said he has been charged with setting the fire that killed Virginia Cranwell on July 25, a blaze officials say started in a bedroom on the top floor of her home. Ahle also faces first-degree murder and first-degree burglary charges. Court records show he is due in court in February.

"I hugged him, I thanked him"

Yvonne McManus, Cranwell's daughter, told CBS News New York by phone Thursday that Ahle told her right after the fire he tried to save her mom.

"I hugged him, I thanked him, for what I thought was him trying to save her. He mentioned several times he got burned in trying to save her," McManus said. "I've been absolutely destroyed. I wasn't eating, wasn't sleeping, lost a ton of weight, not working, and he's never once asked how I was doing or he never expressed any condolences."

On Thursday, winter decorations adorned Ahle's home, while the garage at Cranwell's home had a sign that said "Justice for Virginia."

Neighbors shocked by accusations against "Mayor Bill"

Stunned neighbors, who didn't want to be identified, said Ahle is known as "Mayor Bill."

"Honestly, it is so hard to wrap your head around. I can't make sense of it," one neighbor said. "He was always the guy outside helping people with their trash and letting people know that they have packages. He was just that guy always involved in the neighborhood."

No one answered at Ahle's home on Thursday, but his attorney told CBS News New York, in part, "My 70-year-old client maintains his innocence and looks forward to addressing the accusations through the legal process. Bill had devoted decades of his life to public service, including many years with the Union County Sheriff's Department. We will continue with our own investigation and vigorously defend Bill's rights."

As for a motive, neighbors and her family say they have no idea why anyone would kill Virginia Cranwell.

"I'm just glad that justice is being served," son David Cranwell said by phone. "She was a caring and a loving mother, and she cared for everybody."

"She always had a flower in her hair, lipstick to match," McManus added. "She was my absolute best friend. She was full of life, loved dancing, going to downtown Chester, picking things for her little garden. She didn't have any medical issues at all."

Cranwell's daughter said she has moved out of New Jersey, fearing for her safety.