By Audrey Levine Staff Writer
Despite strong reservations from the New Jersey League of Municipalities and towns throughout the state, Gov. Jon Corzine signed legislation July 17 that amends the previously approved affordable housing third round regulations submitted by the Council on Affordable Housing (COAH).
”We’re disappointed that the governor made that decision,” Committeeman Carl Suraci said. “He didn’t take time to listen to the municipalities.”
The legislation eliminates regional contribution agreements (RCA), which provided municipalities with the opportunity to pay other townships to build affordable housing units that had already been mandated by the state Supreme Court.
”The legislation eliminated this compliance tool, but didn’t replace it with anything,” Mike Cerra, senior legislative analyst for the New Jersey League of Municipalities, said.
In addition, the legislation imposed a 2.5 percent affordable housing fee for nonresidential developers. This money will be placed into a state affordable housing trust fund. About $20 million from that is expected to be appropriated to replace RCA funds.
”It has replaced funding (with this mandate) that cannot possibly pay for all the housing required by the state,” Mr. Cerra said.
The new regulations require the state to add 115,000 units of affordable housing, based on a New Jersey appellate court decision in January 2007.
Before being sent to Gov. Corzine, the legislation was approved by the Assembly June 16 with a 44-34 vote, plus two abstentions, and by the Senate on June 23 with a 21-16 vote.
Hillsborough officials have spoken out against the amendments, approving a resolution July 9 to request that Gov. Corzine veto this legislation. Mr. Suraci said he had heard comments from Speaker Joseph Roberts, who has categorized those towns in opposition to the legislation as being affluent and trying to circumvent the regulations.
”I would like to challenge those misperceptions,” Mr. Suraci said. “Obviously he’s never seen Hillsborough and the other housing we have available.”
According to Mr. Cerra, about 180 municipalities in the state have recently expressed their support of the League of Municipalities with resolutions against the new legislation. He said he expects at least a dozen more to add their support in August.
”We maintain strong reservations against the legislation,” he said.
Princeton law firm Hill Wallack LLP, which has previously represented builders that challenge towns’ affordable housing plans, released an updated list after the legislation was introduced to account for the changes made. In Hillsborough, the number of affordable housing units required to be built from past development obligations will be 650, as opposed to 580 before the amendments were introduced.
The township will also be required to build an additional 461 units for low- and moderate-income housing, as well as rehabilitating 19 units, for a total of 1,130 units.
These numbers are based on a 20-year obligation from 1999 through 2018, according to Stephen Eisdorfer, attorney at Hill Wallack. He said the figures were calculated based on formulas provided by COAH for estimating housing obligations.
Mr. Suraci said that the township’s COAH legal counsel, Andrew Bayer of the Gluck-Walrath law firm, is currently working on a plan for Hillsborough to accommodate all the required units. He said they are still in the beginning stages of drafting out possible scenarios and options.
At the June 10 meeting, the Township Committee unanimously approved a resolution to allow Mr. Bayer to petition the court for an extension of its deadline to complete the plan from Oct. 16 to Dec. 31. The resolution stated that the new third round regulations established Dec. 31 as a new deadline for all municipalities in the state.
Township Clerk Kevin Davis said that Elizabeth McKenzie, the township’s court-appointed special master for affordable housing, has endorsed the request for a deadline extension. Mr. Davis said a ruling will be made in the courts on Friday.
On July 15, the League of Municipalities filed a lawsuit against the validity of the third round COAH regulations. Hillsborough was among the many municipalities in the state that approved a resolution in May to pledge $500 to support the litigation.
Mr. Cerra said that, at this time, he does not know how the League of Municipalities plans to react to the approval of the legislation. Although the lawsuit is not against the new legislation, only the regulations, he said that Gov. Corzine’s approval of the bill can only strengthen the league’s need to move forward with litigation.
”Gov. Corzine’s approval of the legislation makes our challenge of the regulations that much more important,” he said.
According to Mr. Suraci, he said that he is surprised state officials did not respond to the concerns of the municipalities and realize the additional work needed on the regulations and legislation.
”It wouldn’t surprise me if the results of the litigation are some additional changes in the regulations,” he said.
