Committeeman David Sandahl still hopes for better solution
By Ruth Luse, Managing Editor
The Assembly passed legislation aimed at reforming the state’s affordable housing program Monday by implementing “more equitable housing practices and increasing affordable housing availability across the state,” according to a press release.
The measure passed the Assembly 45-33 with two abstentions and is now poised to head to the Senate for further consideration.
The Senate vote is set for Monday, June 23, according to Hopewell Township Committeeman David Sandahl, who said Tuesday: “This legislation cannot become law unless it is also approved by the state Senate and signed by the governor. I hope our residents will take the time to let Sen. (Shirley) Turner and Gov. (Jon) Corzine know that they support affordable housing, but demand a more practical, fiscally responsible solution.”
The measure is sponsored by Assembly Speaker Joseph J. Roberts Jr., Assembly Majority Leader Bonnie Watson Coleman, Assembly Speaker Pro-Tempore Jerry Green, Assemblymen Tom Giblin and Albert Coutinho, and Assemblywoman Mila Jasey.
The bill (A-500) “would overhaul the state’s affordable housing laws for the first time in over two decades to provide more low- and middle-income New Jersey families with access to housing in communities across the state,” according to the release.
”The time has finally come for New Jersey to open the door to affordable housing for the countless working families who are in need of a reasonably priced place to call home,” said Ms. Watson Coleman (D-Mercer). “Every New Jerseyan deserves to have a choice in where they live and access to a home that is within their means.”
Speaker Roberts (D-Camden) said he and his colleagues have been working to refine the measure since the proposal was first unveiled last November.
The plan is aimed at increasing production of affordable housing and easing the ability of working families to secure an affordable place to live. Specifically the bill would:
— Abolish “regional contribution agreements,” (RCAs) ending the practice of allowing municipalities to duck their affordable housing responsibilities while generating new funding through a 2.5 percent fee on nonresidential development. These funds may be used for new construction or rehabilitation of affordable housing units;
— Establish a 20-percent affordable housing set aside for all state-assisted development projects – including smart growth areas and transit villages;
— Promote the production of housing units by setting-aside 13 percent of all affordable housing for families earning less than 30 percent of the state’s median income and;
— Require one-for-one replacement of deed-restricted affordable housing units lost through redevelopment;
— Create an “Affordable Housing Trust Fund;”
— Require towns to commit municipal housing trust fund dollars to affordable housing within their borders;
— Allow municipalities in the Highlands, Pinelands, Meadowlands, Fort Monmouth, and Atlantic City regions to collectively provide affordable housing to promote targeted growth based on employment opportunities and transportation;
— Mandate municipalities to provide density bonuses to developers constructing inclusionary developments;
— Permit private developers of inclusionary development projects to compete for federal low-income tax credits;
— Require all state agencies, when creating new rules, to include a housing affordability impact statement in their rule publication;
— Establish a state Housing Commission charged with developing an annual strategic housing plan and submitting annual reports to the Legislature;
— Ensure a better system for tracking progress on affordable housing through regular publication of statistical reports; and
— Codifying vacant land adjustment which allows COAH to adjust municipal affordable housing obligations downward if a municipality has insufficient vacant land to satisfy its obligation.
According to the release, “The legislation was crafted after a review of housing policies in other states and following discussion with the Department of Community Affairs, other legislators, and input from a wide array of organizations: Housing and Community Development Network, Coalition for Affordable Housing and Environment, Homes for New Jersey, the New Jersey Builders Association, New Jersey Chapter of the National Association of Industrial and Office Properties and New Jersey League of Municipalities.”
COMMITTEEMAN SANDAHL, who has repeatedly expressed concerns about the legislation, said Tuesday:
”I am increasingly concerned that this affordable housing ‘reform’ legislation hides a wolf in sheep’s clothing.
”When we first started planning for our Third Round affordable housing obligation in 2005, we saw challenges, but believed we could work with the tools available to us at that time. For over two decades, Hopewell Township has worked hard—and successfully—to provide affordable housing.
”With the revisions to the Third Round rules and this legislation, our affordable housing obligation has tripled in size while the tools we have to pay for construction have been gutted.
”There was obviously a strong effort to eliminate Regional Contribution Agreements. Behind the scenes, I believe commercial and residential developers took advantage of that reform effort to do away with the ‘payment in lieu’ provision and restrict development impact fees. Those changes shift the financial burden from developers onto the shoulders of towns and their taxpayers.
”I was very troubled to learn that no fiscal impact analysis was conducted on this legislation before the Assembly voted on Monday, a fact I confirmed with Assemblyman (Reed) Gusciora’s office. It is almost as if our representatives don’t want to know what the new tax burdens are; it is a sad repetition of the behavior that got the whole state into such poor fiscal condition.
”Hopewell Township will have to find a funding source for over 75 percent of the cost of each affordable unit, which could add up to over $120 million in new costs and more than double our municipal property tax rate. Statewide, there is no clear financing mechanism for nearly half of the new affordable units, meaning that property taxpayers will be footing the bill for over $7 billion in construction costs.”