By Jessica Ercolino, Staff Writer
A proposed plan to eliminate a major component of affordable housing requirements in New Jersey has caught the attention of many local officials, particularly those in municipalities that could be adversely affected.
On Nov. 13, Assembly Speaker Joseph J. Roberts Jr. pitched a 12-point affordable housing program, mainly focused on eliminating regional contribution agreements, or RCAs.
The agreements allow a municipality without the infrastructure to support high-density affordable housing to transfer up to half of its affordable housing credits to a city in its region.
The plans calls RCAs a “reprehensible practice” and “bad public policy.”
Proponents of the elimination say that RCAs stack affordable housing units in urban areas and oppose diversity in communities. Conversely, some officials say that RCAs help to control sprawl and rural townships may not have the sewer or public transportation systems to support added development.
One township that fits the latter bill is Millstone.
Millstone lacks the sewer and water services needed for higher-density housing, and serves as the headwaters for five watersheds, according to Mayor Nancy Grbelja.
In 2000, Millstone paid Asbury Park $980,000 to build 49 affordable housing units in the city, fulfilling a portion of the township’s obligation.
”We have limited building capability because of the environmental sensitivity,” Mayor Grbelja said. “We feel that RCAs not only help us maintain the integrity of our environment and the water that’s necessary for New Jersey, it helps communities that need that housing.”
Still, Mayor Grbelja said that the township has been moving forward with their state Council On Affordable Housing requirements and that they are “way ahead of the game.”
In Upper Freehold, eliminating RCAs may or may not affect the township depending on a growth share ordinance that the Township Committee will vote on next year, according to Mayor Steve Fleischacker.
The ordinance, which was developed earlier this year before the courts ruled that COAH’s rules needed to be revised, places the cost and responsibility of affordable housing on the developer, he said. If next year’s committee does not make significant changes to the ordinance, then eliminating RCAs will have little effect on the township’s obligation.
Robbinsville may not be as negatively affected by the RCA elimination as other municipalities, but the agreements have helped the township in the past, Township Administrator Mary Caffrey said.
”We integrated affordable housing into the community, so it will be less of a problem,” she said of the potential elimination. “But this is going to be an interesting issue because some of the urban communities have grown accustomed that revenue and rehabilitating substandard affordable housing units.”
Ms. Caffrey said the elimination of RCAs would be like pulling the rug out from under these municipalities.
Mr. Roberts said the state has an obligation to provide substitute funding and to work with mayors and affordable housing advocates. He is hoping to find nearly $15 million a year to aid municipalities affected by the elimination.
He said hearings on the issue would begin this year, but legislative votes will not occur until 2008.

