Bill > S532

Introduced Session

The bill reforms the State's affordable housing laws, and simplifies the mechanisms for determining compliance with the "Fair Housing Act," ("FHA") P.L.1985, c.222 (C.52:27D-301 et al.). This legislation codifies the dissolution of the Council on Affordable Housing ("COAH"), established pursuant to the FHA, and transfers responsibility for FHA administration to the Department of Community Affairs ("DCA"). The bill advances the conclusion of the 2010 Housing Opportunity Task Force that simply requiring 10 percent of prospective residential growth to be affordable would be more effective in producing affordable units than the more complex current system. The bill also repeals the "Statewide Non-Residential Development Fee Act," enacted as sections 32 through 38 of P.L.2008, c.46 (C.40:55D-8.1 through C.40:55D-8.7). The bill directs municipalities to apply to DCA to determine inclusionary status. The bill directs DCA to designate municipalities as inclusionary if: (1) at least 7.5 percent of its total present housing stock is price-restricted; (2) at least one-third of its housing stock can be categorized as either single-family attached, mobile homes, multiple dwellings, or other housing units that are affordable to low and moderate income households; or (3) the municipality adopts zoning ordinances or incorporates new standards into its master plan that contain an analysis of existing housing stock, and an affordable housing plan, consisting of 10 percent set-aside requirements for certain new residential developments, or alternative requirements. For municipalities that choose to address their affordable housing obligation through a 10 percent set-aside requirement, the bill enables those municipalities to address that obligation through alternate means, consisting of:(1) permitting inclusionary units to be newly constructed off-site; (2) permitting the required inclusionary units to be provided off-site by rehabilitation of existing substandard units;(3) permitting a developer to pay a fee into the municipal or State affordable housing trust fund, equating to the current average cost of providing one tenant-based State rental assistance subsidy in the same housing region, multiplied by twenty years, in lieu of each inclusionary unit that would otherwise be required;(4) requiring a developer to construct or contribute to the construction of a 100 percent affordable development;(5) permitting construction of elder cottage housing opportunity units;(6) permitting the construction of off-site accessory apartment units affordable to low- and moderate-income households;(7) permitting the purchase and subsidization of units that are subsequently sold or rented to low- and moderate-income households at affordable sale prices or rents; (8) requiring a developer to construct or contribute to the construction of an assisted living residence in which all or a designated number of units are restricted to low- or moderate-income households; (9) permitting the construction of off-site special needs housing;(10) allowing very low income housing and special needs housing units to apply twice as much weight against a set-aside requirement as other affordable units; and (11) other innovative means to provide for a variety and choice of housing opportunities for low and moderate income residents, so long as the municipality is able to demonstrate a source of funding. In municipalities that have not obtained inclusionary status, proposed developments that satisfy the 10 percent set-aside requirement may be deemed inherently beneficial for the purposes of obtaining a zoning variance. Under the bill, municipalities that received substantive certification or the equivalent under prior COAH rules will be considered inclusionary until the end of their approved certification periods. The bill also permits units already transferred through regional contribution agreements ("RCAs") to be credited to the sending municipality for the purposes of determining inclusionary status. Finally, this bill repeals the "Statewide Non-Residential Development Fee Act". This fee has been charged by all municipalities for non-residential construction or improvements, at a rate of two and one-half percent of the equalized assessed value of land and improvements for all new non-residential construction on unimproved lots. The fee also has been charged at a rate of two and one-half percent of the increase in equalized assessed value for additions to existing structures to be used for non-residential purposes.

Committee Categories

Jon Bramnick (R)*, 

Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee (on 01/09/2024)

Official Document