Archive for December, 2007

New Jersey - One Big Green Acre?

As 2007 winds down, there are many challenges for land use practitioners, property owners, developers and municipal government as a result of court decisions and new regulations.  Here is one glimmer of hope that, at least in the affordable housing context, at least someone in the Governor’s Cabinet in Trenton and a few key leaders in the Legislature understand that the onerous environmental regulations promulgated over the last several years will need to be augmented to provide for realistic affordable housing development. 

Doria: Eco-rules should not block affordable housing

DEP seeking limits on developable land

Tuesday, December 11, 2007BY TOM HESTER

Star-Ledger Staff

The state’s housing chief and a key legislator said yesterday tougher environmental protection standards should be altered to help bolster New Jersey’s affordable housing effort.

Department of Community Affairs Commissioner Joseph Doria told the Assembly Housing and Local Government Committee that while 1.3 million acres of land in the state remains undeveloped, standards proposed by the Department of Environmental Protection would limit any future housing development to 300,000.

“That’s a serious issue,” Doria said. “Will we have the land to provide housing? We have to look at environmental regulations that impact on housing. This is an inter-departmental responsibility.”

The housing-related DEP regulations include preventing construction within 300 feet of streams that feed reservoirs, upgrading quality standards for the waterway, and prohibiting the construction of sewer lines near pristine waterways or endangered species habitats.

Assemblyman Jerry Green (D-Union), the Housing and Local Government Committee chairman, said state environmental officials and activists need to be brought into the affordable housing effort.

“There are people in the environmental community who want New Jersey to become one big green acre,” he said, referring to the state’s open space preservation program. “We all have to work together and they have to become major players in the development of housing.”

Elaine Makatura, a DEP spokeswoman, said Doria and other state officials should bring their concerns to the department before making it a public issue.

“For the DEP to be part of the equation and be part of the decision-making, they must work through the (DEP) commissioner’s office and come in and sit down and discuss it and work with staff to determine what role the DEP will play,” she said. “Developers are not happy with those kind of restrictions. Those restrictions were put in place (proposed) to protect environmental resources like water and habitat.”

Assembly Speaker Joseph Roberts (D-Camden), a prime co-sponsor of a proposed 12-bill affordable housing reform package, said he intends to introduce the measures when the new Legislature convenes Jan. 8. Doria said he expects to offer housing plans on behalf of Gov. Jon Corzine’s administration in March.

Doria said he expects his proposals will include providing housing aid for working-class families. He said, for example, a family of four with an annual income of $80,000 would qualify for a form of affordable housing.

Roberts and Doria were part of a long line of officials and housing advocates who addressed the Housing and Local Government Committee. More than 130 people crowded the hearing room and state troopers had to clear the doorways and send spectators to an adjoining room where testimony was piped in.

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Proposed Affordable Housing Rules Released

The New Jersey Council on Affordable Housing (”COAH”) released proposed regulations on Monday which are intended to comply with the Appellate Division’s court order striking down a large portion of COAH’s earlier attempt at the “Third Round” rules.  COAH has asked the Court to extend the deadline for adoption of the rules from the previously ordered deadline of December 31, 2007, to June of 2008.

For a copy of the proposed Third Round rules, go to the COAH home page.

According to COAH:

Consistent with the requirements of the Appellate Division decision, the rules update the affordable housing requirement for municipalities based on the latest available data. Below is a summary of the major changes:

  • Continuation of the growth share approach, with affordable housing need measured as a percentage of residential and non-residential growth from 2004 to 2018.
  • New ratios are 1 affordable unit among 5 units and 1 affordable unit for every 16 jobs (previously ratios were 1 among 9 units and 1 for every 25 jobs)
  • New affordable housing need for the state is 115,000 affordable units (an increase from 52,000 units in previous adoption).
  • Establishes payment in lieu standards (cost of constructing an affordable unit) averaging $161,000 per affordable unit
  • Regional Contribution Agreement amounts increased from $35,000 per unit to $67,000 to $80,000 per unit (by COAH region)
  • Development fees for new construction increased from 1% of equalized assessed value (EAV) for residential to 1 ½% of EAV and from 2% of EAV to 3% of EAV for non-residential
  • Municipalities may continue to require payments in lieu of non-residential developers pending adoption of legislation establishing a statewide development fee bank
  • Provides a compensatory benefit to developers for providing affordable housing of one additional market unit for every affordable unit constructed
  • Expanded compliance options for municipalities, including bonus credits for supportive and special needs housing, new credit for affordable housing in redevelopment areas, and optional plan phasing based on economic feasibility.
  • Returns to the previous age-restricted cap of 25% of total obligation
  • Proposed staggering schedule would require towns currently under COAH’s jurisdiction to submit revised third round plans between four and seven months after the effective date of the regulations, based on county.

Several media outlets have provided a preview of these complex regulations:

The Star Ledger: N.J. Looks to Bolster Affordable Housing

Asbury Park Press: New Affordable Housing Requirements Proposed

Bergen Record: Affordable N.J. Units Would Nearly Double

Look for a more detailed review of the proposed regulations coming soon….

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