Municipal officials react to state’s new COAH regulations

By Nick Norlen, Staff Writer
   Local municipal officials, still attempting to digest the lengthy and heavily revised state Council on Affordable Housing third-round regulations released Monday, have offered a mixed reaction to the new rules.
   Officials varied in their agreement with a statement issued by the New Jersey League of Municipalities’ shortly after the COAH announcement — that the changes will put the burden on taxpayers, rather than developers, while leaving questions about how the mandates will be funded.
   While some authorities agreed, others stated confidence that their municipality will be able to comply despite potential challenges.
   The revision declares a new state affordable housing need of 115,000 units, up from 52,000 units.
   The rules are scheduled to be officially published Jan. 22, and the council will accept written comments until March 22, with plans to hold five public hearings throughout the state.
   According to COAH, the council’s vote to adopt the revised regulations stems from a Jan. 25 Appellate Division decision earlier this year that invalidated previous regulations.
   The new regulations continue to employ a growth-share approach, with affordable housing need measured as a percentage of residential and non-residential growth from 2004 to 2018.
   Among the major changes is a shift in ratios, including a mandate for one affordable unit for every five residential units, and one affordable unit for every 16 jobs — a change from previous ratios of one in nine units and one unit for every 25 jobs.
   Moreover, allowed amounts for regional contribution agreements (RCAs) — payments to other municipalities to build affordable housing in lieu of construction locally — have been increased from $35,000 per unit to $67,000 to $80,000 per unit, depending on the region.
   The new rules also establish payment in lieu standards, in which a developer would make a payment to a municipality instead of actually constructing an affordable home, averaging $161,000 per affordable unit.
   Development fees for new construction increased from 1 percent to 1.5 percent of equalized assessed value for residential projects, and from 2 percent to 3 percent of equalized assessed value for non-residential projects.
   The schedule proposed by COAH would require municipalities under COAH’s jurisdiction to submit their revised third-round plans between four and seven months after the effective date.
   Here is how Packet-area municipalities reacted to the new COAH standards:
Princeton
   Princeton Regional Planning Director Lee Solow said the new numbers might be difficult for developers and municipalities to adjust to, but said he’s confident the township and borough will be able to handle the new obligations based on their past compliance.
   Cited by Mr. Solow as significant changes are: Obligations for both residential and non-residential development will increase. And K-12 schools and institutions of higher learning are excluded from such standards.
   ”We haven’t done any analysis yet as to what those numbers mean,” he said.
   In the borough, Mayor Mildred Trotman said the new 1-to-5 unit ratio does not pose a problem because it has already been planned for a number of developments.
   ”That’s where most municipalities are going to get hurt,” she said.
   Borough Zoning Officer Derek Bridger, Princeton’s municipal liaison for affordable housing, confirmed that the borough’s planned redevelopment of the University Medical Center at Princeton and Merwick Rehab Hospital & Nursing Care sites has already incorporated standards for 20 percent of on-site affordable housing.
   Furthermore, he said the borough’s practice to “stay away from RCAs” will help it comply with the new increases.
   ”Obviously, it’s expensive and the lack of land makes its difficult,” but the borough has typically been committed to providing affordable housing in the borough, rather than contributing for its construction elsewhere, he said.
   Of concern, however, is Princeton University’s exemption from the growth share obligations.
   ”We’re going to have to recalculate or reshape calculations on that,” Mr. Bridger said.
   Mr. Bridger said the borough should know more about the impact of the university’s exemption — and the overall changes — in the next month.
   ”We’ll be busy in the new year,” he said.
   Princeton Township Affordable Housing Coordinator Christy Peacock referred questions about the new regulations to Township Attorney Ed Schmierer, who also stated confidence in the township’s ability to comply.
   Based on the new ratios, Mr. Schmierer estimated that the township’s new obligation would be between 100 and 110 units, noting that obligations from the previous round of regulations called for approximately 275 units.
   But he said units already provided at the Elm Court senior housing project on Elm Road will count toward the township’s obligation.
   And like the borough, the township hasn’t traditionally relied heavily on regional contribution agreements, he said.
   ”For Princeton Township, even though our obligation is increased, I think it will be manageable,” he said, noting that the mandates are extended to 2018.
   However, Mr. Schmierer said the approximate doubling of the overall state goal for affordable units is cause for some concern.
   ”It’s going to take a lot of building to address that obligation,” he said, noting that many residential developments will likely require density bonuses.
   In addition, it seems like the state has “given a pass to the non-residential development,” Mr. Schmierer said, agreeing with the response from the League of Municipalities that contributions required from developers of office buildings, for example, might not be balanced with the burden put on taxpayers.
   Nevertheless, no one “is overreacting right now,” Mr. Schmierer said. “We’re still downloading the 108 pages-worth of obligations.”
   One of the factors he will be looking for is how the new regulations treat educational institutions.
   Noting that the university is Princeton’s biggest employer, Mr. Schmierer credited the university with being proactive about its intent to provide affordable housing, regardless of COAH mandates.
   ”I don’t think any of that is going to change,” he said. “That’s the good news for the Princeton community.”
   University spokeswoman Cass Cliatt said the university continues “to appreciate the importance of helping the community to provide affordable housing,” while remaining “on course with our existing initiatives,” such as the affordable housing units on Leigh Avenue.
   ”At the same time,” Ms. Cliatt said, it should be noted that the university’s research facilities generate very few new jobs.
   And the university has a fiduciary responsibility to its donors to fulfill those facilities’ mission, which is research, not necessarily providing affordable housing, she said.
   Still, “Princeton does provide a fair amount of affordable housing, especially to graduate students,” she said. “We keep out of the market people who would typically apply or would be eligible for affordable housing.”
   Though no meetings have been scheduled, Ms. Cliatt said she expects university representatives to meet with municipal officials once the regulations are officially published.
— Nick Norlen
Montgomery
   ”Going from the original ratio to 5-to-1 certainly does present a change,” said Montgomery Township Administrator Donato Nieman. “We’ve been giving some examples of the impact it may have on the North Princeton Development Center. If we built 300, it would add 60 affordable housing units and with our fair share of growth, it would probably add a total of 100 or so,” he said, referring to the redevelopment of the former state institution, now called Skillman Village.
   He added, “What I am pleased about at least is that the RCA has not been abandoned completely, because that helps the municipalities. It’s nice to see that remains as an option, because it helps both the receiving community and in some instances the sending community.”
   While the township has been able to satisfy COAH’s past requirements through building within Montgomery, they may seek RCAs to meet these new rules, he said.
   ”Montgomery has always been very, very aggressive in pursuing and meeting our obligation to COAH,” Mr. Nieman added. “The last time they released new rules we met and exceeded them, without needing to pay for any RCAs.”
   Montgomery had discussions with Perth Amboy regarding potential RCAs “that are not dead,” about a year or two ago, but never negotiated any contracts, according to Mr. Nieman.
   ”There is minimal building going on in Montgomery right now,” he added. “There isn’t much going down the pike that we don’t have approvals for other than the NPDC.”
— Katie Wagner
West Windsor
   Mayor Shing-Fu Hsueh said he was concerned about the new COAH regulations and what they mean in increased burdens for municipalities in providing affordable housing opportunities.
   ”I have serious concerns about these new ratios, alone,” said Mayor Hsueh, referring to what looks like a doubling of affordable housing requirements from existing regulations.
   In recent years, West Windsor has been at the forefront of producing affordable housing units, according to Mayor Hsueh, who said the state had identified the township as one of the top 10 municipalities contributing to affordable housing construction.
   So the new regulations would mean an increased burden of housing construction on a township that already has been creating its fair share of affordable units, Mayor Hsueh said.
   The new regulations will also surely have an effect on the redevelopment planning process for the 350-acre area around the Princeton Junction train station.
   The new regulations come at a time when housing remains as one of the most contentious issues in West Windsor’s redevelopment process.
— Greg Forester
Plainsboro
   For a township that has always embraced the idea of providing a variety of housing options, new COAH regulations released earlier this week are troublesome, according to Mayor Peter Cantu.
   ”They’re devastating to communities,” said Mayor Cantu. “I haven’t met any municipal officials who aren’t upset about this.”
   For Plainsboro officials, an initial review of the hundreds of pages in proposals demonstrate that the overall effect of the proposed regulations would come from the increasing housing responsibilities on communities and private developers.
   Those increases are where the trouble lies, according to Mayor Cantu.
   ”It results in a significant increase on the responsibility of municipalities to produce housing, and it limits the flexibility in doing that,” Mayor Cantu said.
   These sentiments come from a township that has long embraced the idea of creating a wide variety of housing options for its residents, with Plainsboro being the first town COAH certified in complying with the second round of negotiations.
   ”They even gave us a plaque,” Mayor Cantu said.
   Also problematic is what the new housing regulations could do to economic development, according to Mayor Cantu, who said the increased burden, when given a dollar value in any given development project, only serves to harm the state’s ability to continue on a path of economic prosperity.
   The Corzine administration’s official stance on enhancing economic development and creating better employment opportunities is contradicted by the new regulations and what they mean for economic development, Mayor Cantu said.
   Plainsboro officials also voiced concern regarding proposed increases in the costs for payments made in lieu of housing and regional contribution agreements, which previously allowed a town to transfer up to 50 percent of its affordable housing obligation to another municipality.
   Mayor Cantu said he plans to call on the New Jersey League of Municipalities and its members to issue a unified statement about the potential for detrimental effects from the new proposals.
   ”We need to pull together and give a clear understanding of what the impacts are,” he said.
— Greg Forester
Rocky Hill
   Rocky Hill Borough Mayor Ed Zimmerman said he has only looked into some of the regulations COAH is mandating, and so far has determined that the new ratio for affordable housing units to regular residential units could have an impact on the borough.
   ”It’s a bigger burden on the municipalities. Essentially, they are doubling the amount of affordable housing required,” Mr. Zimmerman said.
   He added, “The impact on Rocky Hill should be small compared to other municipalities, if it has any impact on us at all, because we’re pretty much built out.
— Katie Wagner