COMPREHENSIVE AFFORDABLE HOUSING REFORM PLAN CLEARS ASSEMBLY PANEL

COMPREHENSIVE AFFORDABLE HOUSING REFORM PLAN CLEARS ASSEMBLY PANEL

Bill Would Implement Most Comprehensive Reform of State's Affordable Housing Laws in Over Two Decades

(TRENTON) - The Assembly Housing and Local Government Committee today released landmark legislation to reform the state's affordable housing program by implementing more equitable housing practices and increasing affordable housing availability across the state. 

The measure is sponsored by Assembly Speaker Joseph J. Roberts, Jr., Assembly Majority Leader Bonnie Watson Coleman, Assembly Speaker Pro-Tempore-designate Jerry Green, Assemblymen Tom Giblin and Albert Coutinho, and Assemblywoman Mila Jasey.

"The Legislature can no longer take an ostrich-like view of the state's housing policy," said Roberts (D-Camden).  "New Jerseyans need homes they can afford and jobs they can reach.  The state must lead by example by expanding access to equitable and affordable housing."

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. 

Roberts said he took action to craft the measure following reports that indicated many New Jersey families are pulling up stakes and moving elsewhere because they can no longer afford to live in the state.

"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 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."

"Low-income New Jersey families are burdened by some of the highest rents and housing costs in the nation," said Green (D-Union), chairman of the housing panel.  "We have a moral responsibility to countless New Jerseyans - disabled residents, families living on limited incomes, and senior citizens - to ensure access to housing is safe and affordable."

Roberts (D-Camden) said he and his colleagues have been working to refine the measure since the proposal was first unveiled last November. 
The multi-faceted 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 25 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;
• Allows municipalities 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;

"We must give state officials, towns and developers every tool possible to promote the construction of new affordable housing," said Giblin (D-Essex).  "By working together, the public and private sector can make the dream of home ownership a reality for working families.

"New Jersey cannot continue as a state comprised of towns where a lack of affordable housing blocks police, firefighters, or teachers from living in the communities they serve," said Coutinho (D-Essex).  "This overhaul of the state's affordable housing laws is long overdue."

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 Apartment Associations, New Jersey Chapter of the National Association of Industrial and Office Properties and New Jersey League of Municipalities.

"Thousands of working New Jersey families spend upwards of one-third of their hard earned incomes just to keep a roof over their heads," said Jasey (D-Essex).  "New Jersey must make significant changes to its affordable housing policies to bring real relief to the many New Jersey families who are struggling to keep up with the ever-growing cost of housing."

The measure was released 4 to 2.  It now heads to the Assembly Appropriations Committee for further consideration.

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