Bill Text: NJ A4347 | 2024-2025 | Regular Session | Introduced
Bill Title: Expressly permits housing constructed prior to April 1, 1980 to be counted toward municipal affordable housing obligation.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced) 2024-05-10 - Introduced, Referred to Assembly Housing Committee [A4347 Detail]
Download: New_Jersey-2024-A4347-Introduced.html
Sponsored by:
Assemblyman GERRY SCHARFENBERGER
District 13 (Monmouth)
Assemblywoman VICTORIA A. FLYNN
District 13 (Monmouth)
SYNOPSIS
Expressly permits housing constructed prior to April 1, 1980 to be counted toward municipal affordable housing obligation.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning affordable housing obligations and housing constructed prior to April 1, 1980 and amending and supplementing P.L.1985, c.222.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) a. As part of a municipality's fair share plan and housing element, the municipality shall be permitted to obtain credit, for a low- and moderate-income housing unit constructed prior to April 1, 1980, toward the municipality's:
(1) unfulfilled prior round obligation, if the municipality is able to demonstrate that:
(a) the housing unit was reserved for occupancy as low- or moderate-income housing for any period of 20 years or more commencing after March 24, 1975, and before the round of affordable housing obligations for which the fair share plan and housing element are developed; and
(b) the municipality has not already obtained credit against a present or prospective obligation for the housing unit;
(2) prospective obligation, if the housing unit is reserved for occupancy as low- or moderate-income housing, in accordance with the Uniform Housing Affordability Controls promulgated by the New Jersey Housing and Mortgage Finance Agency pursuant to subsection b. of section 36 of P.L.2024, c.2 (C. ); or
(3) present need obligation, if the housing unit is rehabilitated in compliance with the rules and regulations adopted pursuant to section 36 of P.L.2024, c.2 (C. ).
b. The Commissioner of Community Affairs shall, in consultation with the Administrative Director of the Courts and the Executive Director of the New Jersey Housing and Mortgage Finance Agency, adopt rules and regulations as necessary for the implementation of P.L. , c. (C. ) (pending before the Legislature as this bill). The rules and regulations of the commissioner shall permit a municipality to apply to the affordable housing dispute resolution program to adjust a fair share plan and housing element, even if the fair share plan and housing element have already obtained compliance certification, to accommodate the allocation of credit for low- and moderate-income housing as categorized pursuant to this section.
2. Section 20 of P.L.1985, c.222 (C.52:27D-320) is amended to read as follows:
20. There is established in the Department of Community Affairs a separate trust fund, to be used for the exclusive purposes as provided in this section, and which shall be known as the "New Jersey Affordable Housing Trust Fund." The fund shall be a non-lapsing, revolving trust fund, and all monies deposited or received for purposes of the fund shall be accounted for separately, by source and amount, and remain in the fund until appropriated for such purposes. The fund shall be the repository of all State funds appropriated for affordable housing purposes, including, but not limited to, the proceeds from the receipts of the additional fee collected pursuant to paragraph (2) of subsection a. of section 3 of P.L.1968, c.49 (C.46:15-7), proceeds from available receipts of the Statewide non-residential development fees collected pursuant to section 35 of P.L.2008, c.46 (C.40:55D-8.4), monies lapsing or reverting from municipal development trust funds, or other monies as may be dedicated, earmarked, or appropriated by the Legislature for the purposes of the fund. All references in any law, order, rule, regulation, contract, loan, document, or otherwise, to the "Neighborhood Preservation Nonlapsing Revolving Fund" shall mean the "New Jersey Affordable Housing Trust Fund." The department shall be permitted to utilize annually up to 7.5 percent of the monies available in the fund for the payment of any necessary administrative costs related to the administration of the "Fair Housing Act," P.L.1985, c.222 (C.52:27D-301 et al.), or any costs related to administration of P.L.2008, c.46 (C.52:27D-329.1 et al.).
a. Except as permitted pursuant to subsection g. of this section, and by section 41 of P.L.2009, c.90 (C.52:27D-320.1), the commissioner shall award grants or loans from this fund for housing projects and programs in municipalities whose housing elements have obtained compliance certification pursuant to section 3 of P.L.2024, c.2 (C. ), or in municipalities receiving State aid pursuant to P.L.1978, c.14 (C.52:27D-178 et seq.).
Of those monies deposited into the "New Jersey Affordable Housing Trust Fund" that are derived from municipal development fee trust funds, or from available collections of Statewide non-residential development fees, a priority for funding shall be established for projects in municipalities that have received compliance certification.
Programs and projects in any municipality shall be funded only after receipt by the commissioner of a written statement in support of the program or project from the municipal governing body.
b. The commissioner shall establish rules and regulations governing the qualifications of applicants, the application procedures, and the criteria for awarding grants and loans and the standards for establishing the amount, terms, and conditions of each grant or loan.
c. For any period which the commissioner may approve, the commissioner may assist affordable housing programs that are located in municipalities that have a pending request for compliance certification; provided that the affordable housing program will meet all or part of a municipal low- and moderate-income housing obligation.
d. Amounts deposited in the "New Jersey Affordable Housing Trust Fund" shall be targeted to regions based on the region's percentage of the State's low- and moderate-income housing need as determined pursuant to the low- and moderate-income household growth over the prior 10 years, as calculated pursuant to section 6 of P.L.2024, c.2 (C. ). Amounts in the fund shall be applied for the following purposes in designated neighborhoods:
(1) Rehabilitation of substandard housing units occupied or to be occupied by low- and moderate-income households;
(2) Creation of accessory dwelling units to be occupied by low- and moderate-income households;
(3) Conversion of non-residential space to residential purposes; provided a substantial percentage of the resulting housing units are to be occupied by low- and moderate-income households;
(4) Acquisition of real property, demolition and removal of buildings, or construction of new housing that will be occupied by low- and moderate-income households, or any combination thereof;
(5) Grants of assistance to eligible municipalities for costs of necessary studies, surveys, plans, and permits; engineering, architectural, and other technical services; costs of land acquisition and any buildings thereon; and costs of site preparation, demolition, and infrastructure development for projects undertaken pursuant to an approved regional contribution agreement;
(6) Assistance to a local housing authority, nonprofit or limited dividend housing corporation, or association or a qualified entity acting as a receiver under P.L.2003, c.295 (C.2A:42-114 et al.) for rehabilitation or restoration of housing units which it administers which: (a) are unusable or in a serious state of disrepair; (b) can be restored in an economically feasible and sound manner; and (c) can be retained in a safe, decent, and sanitary manner, upon completion of rehabilitation or restoration; and
(7) Other housing programs for low- and moderate-income housing, including, without limitation, (a) infrastructure projects directly facilitating the construction of low- and moderate-income housing not to exceed a reasonable percentage of the construction costs of the low- and moderate-income housing to be provided and (b) alteration of dwelling units occupied or to be occupied by households of low- or moderate-income and the common areas of the premises in which they are located in order to make them accessible to persons with disabilities.
e. Any grant or loan agreement entered into pursuant to this section shall incorporate contractual guarantees and procedures by which the division shall ensure that any unit of housing provided for low- and moderate-income households shall continue to be occupied by low- and moderate-income households for a period that conforms to the requirements of subsection f. of section 21 of P.L.1985, c.222 (C.52:27D-321) following the award of the loan or grant, except that the division may approve a guarantee for a period of less duration where necessary to ensure project feasibility.
f. Notwithstanding the provisions of any other law, rule, or regulation to the contrary, in making grants or loans under this section, the department shall not require that tenants be certified as low- or moderate-income or that contractual guarantees or deed restrictions be in place to ensure continued low- and moderate-income occupancy as a condition of providing housing assistance from any program administered by the department, when that assistance is provided for a project of moderate rehabilitation if the project: (1) contains 30 or fewer rental units; and (2) is located in a census tract in which the median household income is 60 percent or less of the median income for the housing region in which the census tract is located, as determined for a three person household by the department in accordance with the latest federal decennial census. A list of eligible census tracts shall be maintained by the department and shall be adjusted upon publication of median income figures by census tract after each federal decennial census.
g. In addition to other grants or loans awarded pursuant to this section, and without regard to any limitations on such grants or loans for any other purposes herein imposed, the commissioner shall annually allocate such amounts as may be necessary in the commissioner's discretion, and in accordance with section 3 of P.L.2004, c.140 (C.52:27D-287.3), to fund rental assistance grants under the program created pursuant to P.L.2004, c.140 (C.52:27D-287.1 et al.). Such rental assistance grants shall be deemed necessary and authorized pursuant to P.L.1985, c.222 (C.52:27D-301 et al.), in order to meet the housing needs of certain low-income households who may not be eligible to occupy other housing produced pursuant to P.L.1985, c.222 (C.52:27D-301 et al.).
h. The department and the State Treasurer shall submit the "New Jersey Affordable Housing Trust Fund" for an audit annually by the State Auditor or State Comptroller, at the discretion of the Treasurer. In addition, the department shall prepare an annual report for each fiscal year, and submit it by November 30th of each year to the Governor and the Legislature, and the Joint Committee on Housing Affordability, or its successor, and post the information to its Internet website, of all activity of the fund, including details of the grants and loans by number of units, number and income ranges of recipients of grants or loans, location of the housing renovated or constructed using monies from the fund, the number of units upon which affordability controls were placed, and the length of those controls. The report also shall include details pertaining to those monies allocated from the fund for use by the State rental assistance program pursuant to section 3 of P.L.2004, c.140 (C.52:27D-287.3) and subsection g. of this section.
i. The commissioner may award or grant the amount of any appropriation deposited in the "New Jersey Affordable Housing Trust Fund" pursuant to section 41 of P.L.2009, c.90 (C.52:27D-320.1) to municipalities pursuant to the provisions of section 39 of P.L.2009, c.90 (C.40:55D-8.8).
j. In addition to other grants or loans awarded pursuant to this section, the commissioner shall annually allocate such amounts as may be necessary in the commissioner's discretion to fund the repair and rehabilitation of housing units constructed prior to April 1, 1980, for the purpose of obtaining credit toward an affordable housing obligation, pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill).
(cf: P.L.2024, c.2, s.26)
3. This act shall take effect immediately.
STATEMENT
This bill provides that housing constructed prior to April 1, 1980 may be counted toward a municipal affordable housing obligation. Before the enactment of P.L.2024, c.2, language existed in the "Fair Housing Act," P.L.1985, c.222 (C.52:27D-301 et al.) that could be construed to restrict the ability of a municipality to obtain credit toward an affordable housing obligation for housing constructed prior to April 1, 1980. This bill is intended to clarify that, under the conditions provided in the bill, municipalities may obtain credit for this type of housing.
Specifically, the bill permits a municipality to obtain credit for low- and moderate-income housing units constructed prior to April 1, 1980, as part of the municipality's fair share plan and housing element, toward the municipality's:
(1) unfulfilled prior round obligation, provided that the municipality is able to demonstrate that the housing unit has been reserved for occupancy as low- or moderate-income housing for a period of 20 years or more in compliance with the bill, and the municipality has not already obtained credit for the housing unit;
(2) prospective obligation, if the housing unit is reserved for occupancy as low- or moderate-income housing, in accordance with the Uniform Housing Affordability Controls; or
(3) present need obligation for a low- or moderate-income housing unit constructed prior to April 1, 1980, if the housing unit is rehabilitated in compliance with rules and regulations adopted by the Commissioner of Community Affairs (commissioner).
The bill also directs the commissioner, in addition to other grants or loans awarded through the New Jersey Affordable Housing Trust Fund, to annually allocate the amounts as may be necessary to fund the repair and rehabilitation of housing units constructed prior to April 1, 1980, for the purpose of obtaining credit toward an affordable housing obligation, in accordance with the authorities provided by this bill.
The bill also directs the commissioner to adopt rules and regulations as necessary for the implementation of the bill. The bill directs the rules and regulations of the commissioner to permit a municipality to apply to the affordable housing dispute resolution program to adjust a fair share plan and housing element to accommodate the allocation of credit for low- and moderate-income housing created in accordance with this bill, even if the fair share plan and housing element have already been approved.
The bill would take effect immediately.
