A bill, known as S-1783, “was reported out of the Senate (Budget and Appropriations) Committee on Monday and is on a fast track for a vote in the Assembly next Monday and the Senate next Thursday (June
By John Tredrea, Staff Writer
Hopewell Township Committeeman David Sandahl has urged residents to contact state Sen. Shirley Turner, D-Mercer, and other New Jersey legislators to express opposition to affordable housing legislation that Mr. Sandahl says could have a disastrous fiscal effect on the township and other municipalities around the state.
The bill, known as S-1783, “was reported out of the Senate (Budget and Appropriations) Committee on Monday and is on a fast track for a vote in the Assembly next Monday and the Senate next Thursday (June 19),” Mr. Sandahl said Wednesday.
Among other things, the proposal outlaws regional contribution agreements (RCAs), which enable some municipalities (such as Hopewell Township) to pay other ones (such as Trenton) to build affordable housing units mandated by the state Supreme Court.
”Affordable housing isn’t a bad idea, it’s a good idea,” Mr. Sandahl said during Monday night’s Township Committee meeting.
The bill working its way through the Legislature, however, is “the height of fiscal irresponsibility” and is being opposed by the New Jersey League of Municipalities, he said.
Mr. Sandahl said that, under the bill, developer fees would pay for less than a quarter of the affordable housing that could be required of the township by the state Council on Affordable Housing’s (COAH) regulations.
”The only way to make up the difference is through local property taxes, as far as anyone can tell,” he said. He added that could translate to a “whopping $122 million fiscal hit” the township would have to cover via local property taxes.
Asked what percentage of a nonresidential project’s cost is assessed against developers for affordable housing under COAH regulations and what the percentage of the project’s costs would be assessed under the Senate bill, if it passes, Mr. Sandahl said: “The Round III regulations had it at 3 percent. Legislation reduces it to 2.5 percent. At this rate, it pays for less than 25 percent of the cost to construct a single affordable unit ($152,227 cost per COAH, estimated $35,713 fee). Three percent would not be much better, but they also have taken away RCAs and something called payment in lieu (which would allow us to charge developers the full cost of affordable units, subject to COAH guidance).”
”We have about 6 million square feet of approved, but not yet built, nonresidential projects at Bristol-Myers Squibb, Janssen Pharmaceutica, Merrill Lynch/Capital Health System and Berwind Property Group. (It) looks like even if developers don’t build, we’ll still have to provide units under wacky terribly flawed rules,” Mr. Sandahl added.