newjerseynewsroom.com

Proposal draws criticism from housing advocates, environmentalists

BY TOM HESTER SR.

NEWJERSEYNEWSROOM.COM

State Sen. Raymond J. Lesniak (D-Union) Monday canceled a hearing on his revised legislation to drastically change how affordable housing is provided in New Jersey, and, instead, explained the proposal to the members of the Senate Economic Growth Committee that he chairs and reporters.

Lesniak said his bill (S-1) would comply with the state Supreme Court's landmark affordable housing mandates and produce twice as much housing than the 35-year effort of the state Council on Affordable Housing. The bill would abolish COAH.

Last week, the senator said that under the bill, about 50 percent of New Jersey's cities and towns — some 283 — would no longer have to provide affordable housing.

"From 1985 to 2009 COAH, according to its web site, has produced 36,000 affordable housing units,'' Lesniak said Monday. "During that period the total residential building permits were 764,667. Under ... S-1, all residential developments of 20 units or more will have a 10 percent set aside requirement, which would have produced 76,467 affordable housing units. That number would have been reduced by developments of more than 5 units but less than 20 which will only have a 5 percent set aside requirement, and by no set asides for developments of less than 5 units. These residential developments are not economically viable with a 10 percent requirement. Nevertheless, even the 5 percent requirement applied across the board, would have bettered COAH's performance.''

Lesniak said his proposal would outperform COAH while saving the millions of tax dollars that he argues have been wasted by COAH's complex rules and regulations that attempt to micromanage development in New Jersey, because it would augment the housing market, rather than stifle it.

"In order to ensure that these affordable units are produced in all municipalities, those municipalities that do not already have a reasonable amount of affordable housing will be required to zone at least 20 percent of their developable vacant land for housing or have an application for housing development in non-residential zones be deemed to be an inherently beneficial use,'' Lesniak said.

The senator said this measure would also::

"Require all new construction of affordable housing be barrier-free for the disabled and give a 2 for 1 credit towards its definition of null for special needs housing;

"Allow Regional Contribution Agreements which were authorized by the sending municipality by resolution prior to July 17, 2008 - the date when RCAs where abolished - to be completed, which may result in producing thousands of affordable housing units and millions of dollars of new investment in affordable housing;

"Allow municipalities that have received substantive certification under COAH's third round rules to choose to rely on that certification or come under the zoning mandates of ... S-1;

"Allow for affordable housing to be produced off-site from a new housing development, or by rehabilitation of existing substandard units, or by payment of a fee in lieu of construction into a municipal trust fund for affordable housing;

"Allow a municipality to give preference for occupancy of affordable units to residents and workers in the municipality;

"Make surplus state property available for affordable housing at a nominal cost;

"Eliminate the tax on non-residential development that impedes job creation and economic growth;

"Exempts as developable, land which does not have reasonable access to sewer service."

Lesniak's bill has been met with strong criticism by affordable housing advocates and environmentalists.

"The proposed bill that would fundamentally undermine New Jersey's affordable housing policies,'' said Kevin Walsh, associated director of the Cherry Hill-based Fair Share Housing center.

"We are glad that members of the Senate Economic Growth Committee are getting more time to discuss and debate the latest version of S.1 before voting, as we had requested," said Staci Berger of the Housing and Community Development Network of New Jersey. "We have met and will continue to meet with members of the committee and other officials to suggest ways that they can move New Jersey's economy forward, by building homes that people can afford near jobs and transit routes.

"Unfortunately, S.1, in any of the versions we have seen so far, does not increase the variety of housing choices for New Jersey residents. Instead, this proposal will reduce opportunities for families and individuals to live in nearly half of the towns in our state,'' Berger said. "Further, we are disappointed that Senator Lesniak canceled today's public hearing and replaced it with a one-way discussion. Our members had hoped to testify about the ways the state can create housing choices and build the homes that people need in every community and at every income level. We continue to be willing to meet with Senator Lesniak to discuss these ideas."

Jeff Tittel, director of the Sierra Club of New Jersey, said the bill "Puts open season on more than half of New Jersey's municipalities, giving power to developers to determine how towns will meet their affordable housing obligations. This bill will encourage sprawl and overdevelopment and will put our natural resources at risk because it contains no environmental criteria.''

Noting that the bill would exempt some 50 percent of municipalities from providing affordable housing, Walsh charged that many of them have produced little affordable housing in the past three decades.

"On what basis does he justify that towns such as Far Hills and Roseland have done enough affordable housing?,'' Walsh asked.

Walsh also said 55 percent of cities and towns with train stations would be exempt from providing affordable housing.

"The very municipalities in which our state policies focus growth would have no obligation to provide opportunities for a range off housing ever again,'' he said. "Why does the senator think this is a good idea?''

Walsh also said the bill would redefine homes costing $350,000 to $400,000 as "affordable," allowing developers to get special incentives and bonuses for building the expensive houses.