Yesterday, as expected, Governor Phil Murphy signed a package of affordable housing bills including A-4/S-50, which overhauls the Fair Housing Act including the elimination of the Council on Affordable Housing (COAH).
The League has long advocated for the State legislature to implement a reasonable, rational, and achievable statewide housing policy. Since the introduction of A-4/S-50, the League has identified several areas of major concern raised by local officials. We appreciate the responsive engagement of the sponsors and staff as well as the many positive resulting changes to the legislation.
The League continued to seek changes to address remaining municipal concerns, such as the methodology, i.e. the determination of housing needs, vacant land, and environmental issues, among others. The League’s statement to the Senate on Monday acknowledged the active engagement of the sponsors and staff to advance the previous positive amendments but also stated that the League could not support the bill in its current form and asked that the bill be held to address the remaining concerns.
With the signing of A-4/S-50, the Department of Community Affairs (DCA) will now begin the process of calculating the statewide and regional affordable housing need, as well as the municipal obligations. The law provides that the DCA must complete these calculations within seven months of the bill’s signing, which sets the deadline as October 20, 2024. Municipalities may accept the DCA’s calculation of their fair share obligation or adopt their own using the methodology outlined within the law through binding resolution before January 31, 2025. Interested parties have until February 28, 2025, to challenge municipal determinations.
For a more in-depth review of A-4/S-50, please see the League’s recent News Flash.
The bill package signed today also includes:
- ACS for A-2267/SCS for S-1415, which requires the New Jersey Housing Mortgage and Finance Agency to establish a pilot program to support insurance premiums for eligible affordable housing projects constructed by for-profit affordable housing developers.
- S-1422/A-3365, which allows taxpayers to accelerate depreciation of eligible property expenditures in connection with construction of new affordable housing developments in order to realize cost savings.
- A-2296/S-2309, which allows a municipal governing body to delegate to the municipal clerk the authority to issue certain approvals to facilitate development of affordable housing projects.
- A-3337/S-2312, which permits “payment in lieu of taxation” (PILOT) agreements between municipalities and affordable housing projects that receive funding through the State Affordable Housing Trust Fund or municipal affordable housing trust funds.
- A-1495/S-1484, which exempts receipts from sales made to contractors or repairmen of materials, supplies, or services related to the construction of 100%-affordable housing projects to help reduce costs for the construction of such projects.
Contacts: Frank Marshall, Esq., Associate General Counsel, fmarshall@njlm.org, 609-695-3481, x137 and Mike Cerra, Executive Director, mcerra@njlm.org, 609-695-3481, x120.