Affordable housing law stops transfer of homes
Gov. Jon S. Corzine has signed legislation that will reform affordable housing laws in New Jersey and, proponents claim, increase housing opportunities for low-income and middle-income families throughout the state.

"Through these measures, we are ending decades of unfair, unbalanced and insufficient provision of affordable housing in New Jersey," Corzine said during the July 17 bill signing ceremony in Mount Laurel. "The fact is, this legislation holds much promise for the thousands of New Jerseyans who want to stay in their hometown- to work there and raise their families there - but simply can't afford to live there. This bill lays the groundwork for us to reach our ultimate goal of ensuring that housing is available to all New Jerseyans, which ultimately will enhance the quality of life for everyone in this state.

"I also want to recognize the courage and persistence of our legislative leaders, especially Assembly Speaker Joe Roberts, for being at the forefront of this issue and standing up for people who need affordable housing in New Jersey," the governor said.

"New Jersey's affordable housing laws have failed to live up to the promise of providing homes for low- and moderate-income residents while having the insidious side effect of concentrating poverty in our inner cities," said Assembly Speaker Joseph J. Roberts Jr. (D-Camden). "New Jerseyans need homes they can afford and jobs they can reach. Today we are transforming the state's almost barren affordable housing landscape from one of lost opportunities to one of hope and promise for thousands of families."

According to a press release from Corzine's office, the bill, A500/S1783, effectively ends the Regional Contribution Agreement (RCA) as a means to address affordable housing requirements under the Fair Housing Act. It also creates a statewide nonresidential development fee of 2.5 percent that will be charged on nonresidential construction or improvements to raise revenue for the construction and rehabilitation of affordable and workforce housing in New Jersey.

The bill also establishes an Urban Housing Assistance Fund to assist urban aid municipalities in the rehabilitation and production of housing. Funding will be supported through receipts from statewide nonresidential development fees, according to the press release.

"Low-income New Jersey families are burdened by some of the highest rents and housing costs in the nation," said Assemblyman Jerry Green (D-Union), chairman of the housing panel. "We have a moral responsibility to countless New Jerseyans - disabled residents, families living on limited incomes, and senior citizens - to ensure access to housing is safe and affordable."

"New Jersey cannot continue as a state comprised of towns where a lack of affordable housing blocks police, firefighters, or teachers from living in the communities they serve," said Assemblyman Albert Coutinho (D-Essex). "This overhaul of the state's affordable housing laws is long overdue."

Through the legislation, minimum numbers of housing units required will be established statewide and set aside for very-low-income persons under the Fair Housing Act.

The bill that was signed by the governor:

• Establishes a statewide nonresidential development fee of 2.5 percent to be charged upon nonresidential construction or improvements to raise revenue for the construction and rehabilitation of affordable and workforce housing. Certain exclusions apply. Developers of nonresidential properties without the state Council on Affordable Housing's or the court's authorization to charge development fees will be required to remit the nonresidential development fees to the state treasurer. The fees will be used for affordable housing purposes under the Fair Housing Act.

• Eliminates the Regional Contribution Agreement (RCA) as a method to address affordable housing needs under the Fair Housing Act.

• Renames the Neighborhood Preservation Nonlapsing Revolving Fund to the New Jersey Affordable Housing Trust Fund. This transformation will require very specific accounting and reporting by the state Department of Community Affairs on the fund's activities.

• Amends the Fair Housing Act to expand the types of properties that may be excluded from being designated as vacant land, including covenant-restricted agricultural lands, lands restricted from development pursuant to environmental laws, reserved recreational sites and historic sites.

• Creates the Urban Housing Assistance Fund, to be funded by an annual $20 million appropriation from the state portion of the receipts of the statewide non-residential development fees which are received directly by the state treasurer. The program will assist urban aid municipalities in the rehabilitation and production of housing. Funds can be used for households earning up to 120 percent of area medium income.

• Establishes minimum numbers of housing units required to be set aside statewide for very-low-income persons under the Fair Housing Act (for those earning 30 percent of median household income).

• Also requires redevelopers of redevelopment projects to replace low- and moderate-income housing units that are subject to affordability controls and are eliminated as a result of such activities with comparable housing, on a one-for-one basis.

• Establishes a State Housing Commission to develop a strategic housing plan for New Jersey, as well as prepare an annual housing performance report to the Governor and the Joint Committee on Housing Affordability.