New Jersey Zoning Watch

In a frenetic day of wheeling and dealing on the $32+ billion State Budget, two key bills that we have been closely tracking received approval from both houses of the legislature, sending them to Governor Corzine’s desk with the expectation that both will be signed in short order.

Affordable Housing Policy Reform

A-500/S-1783, which amends portions of the Fair Housing Act, the Local Redevelopment and Housing Law and the Administrative Procedure Act, provides significant changes to New Jersey’s approach to affordable housing requirements. Central to the bill is the elimination of Regional Contribution Agreements (RCAs) except in specific regional planning areas such as the Highlands, Pinelands, Ft. Monmouth, Meadowlands and Atlantic City region. If a municipality outside of these regional planning areas has received COAH or court approval to proceed with a RCA, they may do so. If it has not received final approval, it must make provision for constructing its fair share obligation within its borders.

The legislation anticipates that the elimination of RCAs will be counterbalanced by a new statewide 2.5 percent development fee which will be imposed on “all” non-residential development (with some exceptions such as non-residential development within a designated transit village area, structured parking facilities, etc.) including expansion of existing facilities. Under the provisions of the bill, the development fee must be paid prior to the issuance of a Certificate of Occupancy. The legislation contemplates payment under protest and the ability to challenge the assessment of the “equalized assessed value” which is the basis for imposition of the fee. This legislation effectively eliminates the requirement under current COAH regulations that a non-residential developer provide an affordable unit for every 16 jobs purportedly created and pre-empts any current municipal development fee ordinances.

Municipalities that petition COAH for substantive certification of a housing plan can create dedicated escrow funds for the revenues generated from new non-residential construction which must be spent on meeting that municipalities affordable housing needs within a four-year period. Those municipalities that have not applied for substantive certification must send the fees collected to a statewide Affordable Housing Trust Fund, which will be administered by DCA for the creation of affordable housing throughout the state.

The legislation also requires state agencies, when preparing rule proposals, to include a “Housing Affordability Impact Analysis” and “Smart Growth Development Impact Analysis” to force regulatory agencies to focus on whether proposed regulations will have an impact on the affordability or availability of housing.

Other amendments include requiring the replacement of affordable housing on a 1:1 basis when a redeveloper eliminates existing affordable housing in constructing or assembling a redevelopment project and mandates that the comparable housing be located in or in close proximity to the redevelopment; mandating a 20 percent affordable housing component in designated transit village and urban transit hub areas while eliminating the 2.5 percent non-residential development fee for such projects; and mandatory inclusionary development requirements for property that is rezoned from commercial or industrial to residential. The legislation also encourages that financial incentives, including density bonuses, be incorporated into a municipality’s fair share/housing plan.

Permit Extension Act

A-2867/S-1919 provides for the tolling of many types of development permits and government approvals from January 1, 2007 to July 1, 2010. Under no circumstances will approvals tolled under this legislation exend further than six months past the July 1, 2010 extension period. Notable exceptions that are not tolled by this Act include approvals for development in “environmentally sensitive areas” and flood hazard area permits, unless a project has already commenced.

We will be providing a more comprehensive overview of the final versions of these legislative proposals once they are signed into law by Governor Corzine.

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On Monday, June 16, the full Assembly is expected to vote on a revised version of A-500, a wide-ranging affordable housing reform bill, which eliminates widespread use of regional contribution agreements (RCAs). The Assembly Appropriations Committee passed the bill, with amendments, on Thursday. Also on Monday, the Senate Budget and Appropriations Committee will take up similar legislation which is the result of a compromise between Assembly Speaker Joseph Roberts and State Senator Ray Lesniak (D-Union). Click here for Assembly Affordable Housing Bill - Revised

According to Saturday’s Star Ledger:

The Roberts-Lesniak legislation is designed to reshape New Jersey’s 20-year affordable housing effort. It would use $20 million of the $80 million to $120 million the state and municipalities hope to raise through a fee on the new commercial development for affordable housing in urban areas, Lesniak said.

The bills would create five zones: the Meadowlands, Fort Monmouth, the Highlands, the Pinelands and Atlantic City. Towns within four of the zones could transfer no more than 50 percent of the housing they are required to provide to a neighboring town. Only the Atlantic City zone would be permitted to exceed the 50 percent cap because of a large demand for affordable housing in the area.

For the full article, click here.

The Home News Tribune also reported on the legislation, calling the bill “a sweeping overhall to the state’s affordable housing policy.” The Home News article also highlighted other proposed changes:

The bill would also levy a new fee — 2.5 percent — on all nonresidential development to finance housing construction or rehabilitation.

If passed, all state-assisted development projects would have to set aside 20 percent of units for affordable housing; 25 percent of affordable housing units would be set aside as “very low income” for families earning 30 percent of the state’s median household income; and developers including affordable housing in their projects would receive density bonuses, meaning they could construct more units than currently allowed.

For the full article, click here.

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In a preview of the draft redevelopment concept plan for the 1,100 acre Fort Monmouth Army base, an Associated Press report states that high-tech research would continue to be an integral part of the base when it transitions to private development, with an anticipated $1 billion private investment in new housing, retail and recreational opportunities.   The plan was presented to reporters at a meeting on March 18.  It is scheduled to be unveiled at a public meeting at Monmouth Regional High School in Tinton Falls on Wednesday, March 19.

 According to the AP report:

As expected, the plan combines different uses. In general, heavy commercial uses would be closest to the Garden State Parkway, at the western edge of the fort. A combination of retail and housing is envisioned by the fort’s arched brick gates along bustling Route 35. A small hotel and spa is proposed at the eastern edge along the Shrewsbury River.

In between would be nearly 1,500 homes and apartments, with 25 percent of them set aside for low- and moderate-income residents, along with shopping and dining centers, offices and labs. All would be connected by about six miles of bike paths and walkways allowing for car-free commuting and living.

The fort’s 18-hole golf course would remain, but under a private developer who could build a 150-room hotel and conference center, according to the preliminary plan.

A public comment period will follow this presentation, with the draft plan to be finalized by June.  Following the comment period, it will be submitted to the U.S. Department of Housing and Urban Development in September.  Following plan approval, the Army will market the plan to developers, according to the AP report.

While implementation is years away as the base is phased out and the plan percolates though multiple layers of local, regional, state and federal agency review, it will be interesting to see how the final product, years from now, compares to the plan presented on Wednesday.

For the full article, click here.

For the Asbury Park Press article entitled “Fort Could Go Green,” click here.

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On Wednesday, March 19, the Fort Monmouth Economic Rivitalization Planning Authority is set to present a preliminary concept plan for the redevelopment of Fort Monmouth, a 1,100 acre army base that lies within the municipal borders of Tinton Falls, Oceanport and Eatontown.  The base is scheduled for closure by 2011. 

This is the first major public presentation in the process to formulate a redevelopment plan for the base, which must be finalized by September 8, pursuant to federal law.  The base includes buildings which support high-tech operations which the mayor of Tinton Falls would like to see transitioned to the private sector in the redevelopment process.  The mayor of Eatontown also commented favorably on the creation of multiple housing options with a retail business at the base.

The presentation will be held at Monmouth Regional High School   One Norman J. Field Way, Tinton Falls, starting at 6:30 p.m.  A question and answer period will follow the presentation.

For more information, see the Asbury Park Press story here.

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