Information Regarding Affordable Housing Regulations and Legislative Updates In 1975 the New Jersey Supreme Court ruled that each municipality in the State has a constitutional obligation to provide a realistic opportunity for the construction of affordable housing. In 1985 the Fair Housing Act was enacted to provide a process by which municipalities could comply with their constitutional obligation. The Council on Affordable Housing (COAH) was created to determine affordable obligations and review a municipality’s affordable housing plan for compliance. As COAH was a State agency, towns did not have to pay for the review of their plans. However, in March of 2015 the Supreme Court stripped COAH of their power to review towns’ compliance plans, due to the agency’s inability to adopt new rules in a timely fashion. The 2015 Supreme Court order remanded the review of affordable housing compliance plans to the Courts. Towns were forced to file Declaratory Judgment Actions to attempt to comply with the constitutional requirement. This process has been costly as it requires significant attorney involvement, which was not necessary when COAH functioned. Despite these challenges, Green Brook filed a Declaratory Judgment Action in 2015 and ultimately received a Judgment of Repose and Compliance in 2019, which approved the Township’s housing plan. However, new Legislation was introduced in January that would have a significant impact on affordable housing in Green Brook Township. This Legislation appears to be on fast-track to adoption. The intended purpose of the proposed Legislation is to address ongoing issues with the current administration of affordable housing in the State. The Legislation, as proposed, neither solves the current Court-driven process problems, nor creates a more efficient process. Instead, this proposed legislation would result in less certainty, reduced flexibility in addressing affordable obligations, and increased litigation costs to municipalities. Top 3 Legislation Concerns for Residents with Senate Bill 50 and Assembly Bill 4: Bloated obligation. The proposed formula to determine each municipality’s obligation appears to yield very high affordable housing obligation numbers. The formula has not yet been tested and if blindly accepted could levy large quotas on towns that are already fully developed. Increased costs. Due to ambiguities in the Legislation towns are likely to experience increased litigation costs and due to the bill language, there are increased opportunities for developers to sue communities, which could have property tax implications. Elimination of bonus credits. Under the present rules communities are able to claim a certain percent of their obligation as “bonuses”. For example, a town with an obligation of 50 could build 37 affordable apartment units and receive 37 credits and 13 bonuses. Under the proposed Legislation the permitted bonuses are drastically changed and it will be extremely difficult for communities to achieve bonuses, which will require more physical units to be constructed. It is important you engage with your state legislators to amend the proposed Legislation to address the hardships that are outlined above. Mayor Van Arsdale has signed on to a letter to the Governor and Senate and Assembly leadership, along with other Mayors from around the state, asking that Senate Bill 50 and Assembly Bill 4 be placed on hold until municipalities are afforded the opportunity to provide substantive comments and concerns regarding the proposed legislation that would have a significant impact on affordable housing throughout the entire state. Contact Your District 21 Legislators by Clicking Here (Senator Bramnick, Assemblywoman Michele Matsikoudis and Assemblywoman Nancy F. Muñoz)
Information Regarding Affordable Housing Regulations and Legislative Updates
In 1975 the New Jersey Supreme Court ruled that each municipality in the State has a constitutional obligation to provide a realistic opportunity for the construction of affordable housing. In 1985 the Fair Housing Act was enacted to provide a process by which municipalities could comply with their constitutional obligation. The Council on Affordable Housing (COAH) was created to determine affordable obligations and review a municipality’s affordable housing plan for compliance. As COAH was a State agency, towns did not have to pay for the review of their plans. However, in March of 2015 the Supreme Court stripped COAH of their power to review towns’ compliance plans, due to the agency’s inability to adopt new rules in a timely fashion.
The 2015 Supreme Court order remanded the review of affordable housing compliance plans to the Courts. Towns were forced to file Declaratory Judgment Actions to attempt to comply with the constitutional requirement. This process has been costly as it requires significant attorney involvement, which was not necessary when COAH functioned. Despite these challenges, Green Brook filed a Declaratory Judgment Action in 2015 and ultimately received a Judgment of Repose and Compliance in 2019, which approved the Township’s housing plan.
However, new Legislation was introduced in January that would have a significant impact on affordable housing in Green Brook Township. This Legislation appears to be on fast-track to adoption. The intended purpose of the proposed Legislation is to address ongoing issues with the current administration of affordable housing in the State. The Legislation, as proposed, neither solves the current Court-driven process problems, nor creates a more efficient process. Instead, this proposed legislation would result in less certainty, reduced flexibility in addressing affordable obligations, and increased litigation costs to municipalities.
Top 3 Legislation Concerns for Residents with Senate Bill 50 and Assembly Bill 4:
It is important you engage with your state legislators to amend the proposed Legislation to address the hardships that are outlined above. Mayor Van Arsdale has signed on to a letter to the Governor and Senate and Assembly leadership, along with other Mayors from around the state, asking that Senate Bill 50 and Assembly Bill 4 be placed on hold until municipalities are afforded the opportunity to provide substantive comments and concerns regarding the proposed legislation that would have a significant impact on affordable housing throughout the entire state.
Contact Your District 21 Legislators by Clicking Here (Senator Bramnick, Assemblywoman Michele Matsikoudis and Assemblywoman Nancy F. Muñoz)
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