newjerseynewsroom.com

Legislation eliminates state Council on Affordable Housing

BY TOM HESTER SR.

NEWJERSEYNEWSROOM.COM

UPDATED

Half of New Jersey's cities and towns — some 283 of them — would no longer have to provide affordable housing under revised legislation being pushed by state Sen. Raymond J. Lesniak (D-Union).

The proposal (S-1), which is expected to be approved by the Senate Economic Growth Committee, a panel Lesniak chairs, on Monday, would also eliminate the state Council on Affordable Housing in favor of what the senator sees as a fairer, market-driven model.

Lesniak believes his proposal will comply with the state Supreme Court's Mount Laurel decisions.

Under the bill, municipalities such as Princeton, Summit, Far Hills, Parsippany-Troy Hills, Newark and Camden would no longer have to provide affordable housing.

The bill declares 50 percent of the state's 566 municipalities have met their affordable housing obligations by having a mix of housing choices for low- and moderate-income New Jerseyans.

It mandates that housing developments in the other 50 percent set aside 20 percent of their houses and apartments as affordable housing. And that a zoning variance be granted for null housing developments, unless "it would have a negative impact on health and safety.''

The measure would require that municipal approvals for affordable housing be given all reasonable inducements to make the development economically viable and, if it still is not economically viable, allows the state Housing and Mortgage Finance Agency, after reviewing the economics of the development, to reduce the affordable housing component to 10 percent.

It also allows for 50 percent of the affordable housing component to be so-called workforce housing — a term state officials have come to use instead of low- or moderate-income housing — which Lesniak believes would help make the development of affordable housing more economically feasible.

"That's it. The SCS (committee substitute) for S-1 recognizes that no planning, no zoning, no projections, no fees imposed will produce affordable housing if it's not economically viable,'' Lesniak said Thursday. "Imposing affordable housing requirements on market rate housing developments or fees on commercial, retail and industrial developments, that are economically untenable, will result in no housing being built of any kind and will result in less jobs, less economic growth and less revenue production for our state and for our residents.''

Housing advocates argue the legislation is designed to weaken the affordable housing effort in New Jersey. The Cherry Hill-based Fair Share Housing Center went to court last month won a stay of Gov. Chris Christie's order that attempted to halt all activity by the Council on Affordable Housing for 90 days while a task force examined the state's role in providing affordable housing.

"While litigation is unavoidable, it's expected that the flexibility of compliance under S-1 will mitigate the need for it, including the preferences allowed for residents, workers in a municipality and low income seniors, as well as allowing off site location of the affordable units and rehab as an alternative to new construction,'' Lesniak said.''

Kevin Walsh, Fair Share associate director, called the revised proposal bizarre.

"We have been involved in discussions about affordable housing in New Jersey for a long time, and we stay on top of what other states are doing,'' he said. "We can safely say that the amended version of S-1 is the strangest housing policy that has ever been seriously considered in any statehouse.''

Walsh described the legislation as "ridiculous'' and "substantially flawed.'' He said, "This legislation is not only unconstitutional, but also entirely unworkable.

"Saying just that it is designed to produce less affordable housing is an understatement,'' Walsh said. "The amended version of S-1 would produce virtually no affordable housing and shift homes further from jobs and transportation and would exempt many of the state's wealthiest towns from any further housing obligation. Nor would it comply in any meaningful way with the (state Supreme Court) Mount Laurel doctrine. It will be interesting to see what kind of defense, if any, Senator Lesniak can offer for his strange proposal at the Economic Growth Committee hearing on Monday.''

Lesniak's revised legislation comes as the Assembly Housing and Local Government Committee meets Thursday afternoon at the Statehouse Annex to examine Christie's effort to stop the activities of COAH.

"Creating a workable affordable housing plan — especially in New Jersey, the most densely populated state in the union with expensive housing costs — will take teamwork, compromise and the combined efforts of the executive and legislative branches of government," said Assemblyman Jerry Green (D-Union), the committee chairman. "I hope this hearing will be the first step toward everyone working cooperatively to devise a viable solution to New Jersey's housing and planning concerns."

On Friday, the Housing & Community Development Network of New Jersey, the Fair Share Housing Center and other groups that want to see more affordable housing will meet with Christie's Housing Opportunity Task Force.

The Network, represents more than 250 citizen groups and non-profit developers throughout the state, and Fair Share represents the interests of lower-income New Jerseyans.

The advocates will recommend ways to expand housing opportunities and resolve the state's housing crisis. The Network and Fair Share believe it is critical that the state enforce what they see as a fair, effective and sustainable approach to future development and returning the state to prosperity.

"This is about enabling New Jersey to meet the housing needs of all its citizens," said Diane Sterner, the Network's director. "Elected leaders must provide tools and resources to increase the variety and supply of homes people can afford in the Garden State, and we want to help them find effective ways to do this. New Jersey needs to do a better job of making our housing market work for people at every income level and in communities around our state."

"In much of New Jersey, there are not enough homes to keep up with demand for a decent place to live close to transit and jobs," Walsh said. "In some major job centers there are as many as 10 times the number of jobs as houses. We need to enforce our state's Constitutional obligation to correct these imbalances."

The Network and Fair Share advocates said they understand that additional organizations have been invited to attend this and similar sessions, groups representing planners, environmentalists, realtors, builders, social justice activists, other community development groups and housing advocates, and other interested parties.