Bill Text: NJ A420 | 2010-2011 | Regular Session | Introduced
Bill Title: Creates temporary suspension of certain rules of Council on Affordable Housing under certain economic conditions.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Introduced - Dead) 2010-01-12 - Introduced, Referred to Assembly Housing and Local Government Committee [A420 Detail]
Download: New_Jersey-2010-A420-Introduced.html
STATE OF NEW JERSEY
214th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2010 SESSION
Sponsored by:
Assemblyman SCOTT T. RUMANA
District 40 (Bergen, Essex and Passaic)
Assemblyman VINCENT J. POLISTINA
District 2 (Atlantic)
Assemblyman JOHN F. AMODEO
District 2 (Atlantic)
SYNOPSIS
Creates temporary suspension of certain rules of Council on Affordable Housing under certain economic conditions.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act concerning the production of affordable housing in an economic turndown and supplementing P.L.1985, c.222 (C.52:27D-301 et al.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. The Legislature finds and declares:
a. While New Jersey remains the most densely populated state in the country, the current state of the housing market has caused a virtual freeze on the ability of many individuals to sell their homes, and the crisis on Wall Street has caused a shortage in the availability of mortgage funds to lend to those wishing to purchase existing or new homes.
b. New Jersey's affordable housing policy, as incorporated into the regulations of the Council on Affordable Housing, is based on the assumption that there is very little supply of already existing affordable housing, and therefore there is a need for new housing to be constructed and made available for occupancy by families of low or moderate income.
c. Housing prices have plummeted in the State.
d. Large amounts of inventories of unsold newly-constructed homes are beginning to occur, as well as increased numbers of reported bankruptcies of experienced homebuilders.
e. Sales of existing homes have declined to a record low in the State, while a surplus of foreclosed-upon homes have contributed to a new supply of affordable housing units.
f. A national recession has negatively impacted the housing market due to the tightening of credit and the decline of building activity.
g. In light of all of these factors, there is a need to adjust the affordable housing policies of the State on an interim basis until the housing market and current economic conditions turn around.
2. a. Notwithstanding any regulation, statute, or other law to the contrary, in accordance with section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill), the calculations of the council for the current housing obligation period for any municipality shall be deemed to be advisory only, and the regulations of the council shall be deemed advisory.
b. Notwithstanding subsection a. of this section, any municipal development fee trust funds committed for expenditure shall continue to be subject to the rules of the council for such funds.
c. During a period of advisory status, no non-residential development fee shall be collected pursuant to the "Statewide Non-residential Development Fee Act," sections 32 through 38 of P.L.2008, c.46 (C.40:55D-8.1 through C.40:55D-8.7).
d. During a period of advisory status, every municipality shall be deemed to have temporary substantive certification from the council and, notwithstanding section 11 of P.L.1985, c.222 (C.52:27D-311), density bonuses shall not be considered an appropriate technique to meet all or part of a municipality's fair share.
3. a. Beginning on the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), all municipalities shall be deemed to have temporary substantive certification pursuant to subsection d. of section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), until such time that an advisory notice is issued by the New Jersey Real Estate Commission pursuant to subsection b. of this section, or until the first day of the 60th month next following enactment, whichever is earlier.
b. The New Jersey Real Estate Commission, as continued pursuant to R.S.45:15-5, shall monitor the level of sales of existing single family homes within in the State, and issue a written advisory notice to the Council on Affordable Housing and the Legislature whenever the volume of sales of existing single family homes equals or exceeds the volume of sales as reported by the New Jersey Association of Realtors for the year 2006.
c. Upon the issuance of a written advisory notice pursuant to subsection b. of the section, the temporary substantive certifications granted pursuant to subsection a. of this section shall expire.
4. During a period of advisory status pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), the Council on Affordable Housing shall:
a. undertake and prepare a corrected vacant land survey;
b. conduct public meetings throughout the State in order to provide a realistic opportunity for municipalities to express their problems and concerns with the council's methodologies and processes;
c. study what other states are doing to provide for affordable housing and report to the Governor and the Legislature, with recommendations for changes to the current law to reduce the bureaucracy and streamline the process;
d. review for accuracy, the household, employment, and growth projections that the council has provided to each municipality for the municipality's determination of its present and prospective fair share of the housing need for its housing region;
e. develop, in coordination with the Highlands Council, an advisory process for municipalities to have their affordable housing questions answered, and concerns addressed, without having to apply for inclusion into the regional master plan for the Highlands Region; and
f. prepare an analysis of how the council's mission, programs, and organization should change as complete build-out is approached and achieved.
5. This act shall take effect immediately.
STATEMENT
This bill suspends certain obligations of municipalities to create affordable housing units when economic conditions are such that existing housing units are increasingly going into foreclosure, sales and sales prices of existing and newly-constructed homes are plummeting, and major housing developers are going bankrupt.
The current subprime and other mortgage crises, and recent increases in foreclosures of housing units, require that the State review its housing policies. The regulations of the Council on Affordable Housing assign an obligation to each municipality to provide units of affordable housing, despite the fact that the current housing market and lending crisis are causing even many above- average income families to find it difficult to stay in their homes.
The bill would make the regulations of the Council on Affordable Housing advisory only and not obligatory. Each municipality, upon the effective date of the bill if enacted into law, would be deemed to be granted temporary substantive certification under the "Fair Housing Act." Upon the volume of sales of existing single family homes returning to the level experienced in 2006, the Division of the New Jersey Real Estate Commission in the Department of Banking and Insurance would issue an advisory notice to the council and to the Legislature, which would lift the advisory status of the rules, and return the compliance status of municipalities to their respective previous conditions.
During a period of advisory council rules, the bill requires COAH to:
· undertake and prepare a corrected vacant land survey;
· conduct public meetings throughout the State in order to provide a realistic opportunity for municipalities to express their problems and concerns with the council's methodologies and processes;
· study what other states are doing to provide for affordable housing and report to the Governor and the Legislature, with recommendations for changes to the current law to reduce the bureaucracy and streamline the process;
· review for accuracy, the household, employment, and growth projections that the council has provided to each municipality for the municipality's determination of its present and prospective fair share of the housing need for its housing region;
· develop, in coordination with the Highlands Council, an advisory process for municipalities to have their affordable housing questions answered, and concerns addressed, without having to apply for inclusion into the regional master plan for the Highlands Region; and
· prepare an analysis of how the council's mission, programs, and organization should change as complete build-out is approached and achieved.
