COAH released today its new revised Third Round Rules. The following is the summary form their web site. To view the rules click here.
“The rules are scheduled to be published in the January 22, 2008 New Jersey Register. COAH will be holding five public hearings throughout the State. Also, written comments can be submitted to COAHmail@dca.state.nj.us until March 22, 2008.” We encourage everyone to review and comment on these rules.
On December 17, 2007, the New Jersey Council on Affordable Housing (COAH) voted to propose its revised third round regulations resulting from the Appellate Division Decision on January 25, 2007. The rules are scheduled to be published in the January 22, 2008 New Jersey Register. COAH will be holding five public hearings throughout the State. Also, written comments can be submitted to COAHmail@dca.state.nj.us until March 22, 2008.
Consistent with the requirements of the Appellate Division decision, the rules update the affordable housing requirement for municipalities based on the latest available data. Below is a summary of the major changes:
Continuation of the growth share approach, with affordable housing need measured as a percentage of residential and non-residential growth from 2004 to 2018.
New ratios are 1 affordable unit among 5 units and 1 affordable unit for every 16 jobs (previously ratios were 1 among 9 units and 1 for every 25 jobs)
New affordable housing need for the state is 115,000 affordable units (an increase from 52,000 units in previous adoption).
Establishes payment in lieu standards (cost of constructing an affordable unit) averaging $161,000 per affordable unit
Regional Contribution Agreement amounts increased from $35,000 per unit to $67,000 to $80,000 per unit (by COAH region)
Development fees for new construction increased from 1% of equalized assessed value (EAV) for residential to 1 ½% of EAV and from 2% of EAV to 3% of EAV for non-residential
Municipalities may continue to require payments in lieu of non-residential developers pending adoption of legislation establishing a statewide development fee bank
Provides a compensatory benefit to developers for providing affordable housing of one additional market unit for every affordable unit constructed
Returns to the previous age-restricted cap of 25% of total obligation
Proposed staggering schedule would require towns currently under COAH’s jurisdiction to submit revised third round plans between four and seven months after the effective date of the regulations, based on county.