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On June 23rd the New Jersey State Senate approved by a vote of 21-16 S1783, its version of the comprehensive housing reform bill, identical to A500 which passed the Assembly on June 16.

This is an important step toward meeting the affordable and supportive housing needs of individuals and families including the homeless.

According to the Star-Ledger, Assembly Speaker Joseph Roberts (D-Camden), a prime sponsor in the lower house said “I’m gratified. We have taken a giant step toward making the dream of affordable housing a reality in New Jersey.”

Roberts said Gov. Jon Corzine has assured him he will sign the legislation in the near future.

This legislation includes a number of policy priorities the Housing and Community Development Network, Homes for New Jersey and Monarch Housing have championed for many years.

The core elements of S1783 represent significant opportunities for New Jersey to provide safe, quality and affordable housing to residents of our State, including:

Creating a State Housing Plan and Commission: This Commission will provide strategic direction in establishing housing goals, strategies and resource priorities for the state. Comprised of public, private and government representatives, it will gather and disseminate information on housing needs, and prepare and adopt an annual Strategic Housing Plan with public input. New Jersey needs a regularly updated housing plan to establish priorities, identify needed reforms and ensure the most effective and targeted use of limited state resources. DCA and HMFA must submit an annual report detailing its housing activity.

Establishing a Statewide Developer Fee: This assessment will help increase critically needed resources for affordable housing development. It will also help create a predictable playing field for commercial and non-residential developers, by applying a statewide 2.5% fee on these projects, rather than a fee, that under COAH regulations, could be as high as 9% on these projects.

Promoting Very Low Income Housing: S1783 promotes the production of affordable housing for very low income households (households below 30% of area median income) by requiring New Jersey to target our housing programs so that 13% of all affordable housing units are created for very low-income households immediately. This is nearly double what the state is currently achieving.

Ensuring one-for-one replacement in redevelopment areas: Redevelopment usually removes market housing that is affordable to lower income families because these homes tend to be in poor condition and located in areas that contain other blighting factors. In order to protect NJ’s scarce affordable housing stock, S1783 requires one-for-one replacement of deed-restricted housing currently affordable to low and moderate income residents, so long as it has been occupied within the last 18 months.

Making Set Asides for Transit Oriented Development: S1783 will mandate that TODs and other state-supported developments as well as regional planning areas set aside 20% of units produced as affordable.

Encouraging Local Spending: Municipalities with Housing Trust Funds will be required to spend these funds with in four years, or the funding will be remitted to the state. Non-profits in the area would be able to access these resources to support projects in the area.

Eliminating Regional Contribution Agreements (RCAs). The bill would end RCAs and dedicate $20 million from the newly created Urban Housing Fund to support the creation and rehabilitation of housing for families earning up to 120% of the area median income in New Jersey’s cities.

Addressing Middle Income Affordability: The bill creates a new category of housing need for those earning 80-110% of area median income. The Housing Plan and Commission could address the needs of this population and recommend steps that the state and local governments can take to improve housing choices. The rehabilitation fund may be used to encourage market-rate housing for this population in targeted low-income areas in order to encourage mixed-income neighborhoods in New Jersey’s cities.

Providing an Impact Analysis: S1783 would also mandate that any agency proposing a rule must issue a housing affordability and smart growth development impact analysis.

Click here to view the bill in entirety.

Tags: Advocacy, affordable-housing, Ending Homelessness, Joe-Roberts, Supportive Housing


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