Bill Text: NJ S1081 | 2024-2025 | Regular Session | Introduced
Bill Title: Requires developers of residential housing to provide low, moderate, and middle income housing or pay fee.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-01-09 - Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee [S1081 Detail]
Download: New_Jersey-2024-S1081-Introduced.html
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Senator BRITNEE N. TIMBERLAKE
District 34 (Essex)
SYNOPSIS
Requires developers of residential housing to provide low, moderate, and middle income housing or pay fee.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning affordable housing 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. a. The developer of a project with 30 or more residential units that: is approved by a planning board or zoning board of adjustment; is permissible under either a use variance, a density variance increasing the permissible density at the site, a rezoning permitting multiple residential units where not previously permitted, a new or amended redevelopment plan, or a new or amended rehabilitation plan; has a net density of six or more units per acre; and for which an application for a construction permit is submitted on or after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), shall reserve at least:
(1) five percent of the residential units for very low income housing;
(2) 10 percent of the residential units for low income housing;
(3) five percent of the residential units for moderate income housing; and
(4) five percent of the residential units for middle income housing.
b. A project subject to subsection a. of this section shall be developed as follows:
(1) If more than 25 percent of market rate housing units are completed, no less than 10 percent of very low, low, moderate, and middle income housing units shall be completed;
(2) If 50 percent or more of the market rate housing units are completed, no less than 50 percent of very low, low, moderate, and middle income housing units shall be completed;
(3) If 75 percent or more of the market rate housing units are completed, no less than 75 percent of very low, low, moderate, and middle income housing units shall be completed;
(4) If 90 percent or more of the market rate housing units are completed, no less than 100 percent of very low, low, moderate, and middle income housing units shall be completed;
The municipality shall withhold a certificate of occupancy for market rate units, at any stage of development, if the requirements of this subsection are not satisfied.
c. The developer of a project subject to subsection a. of this section may develop the residential units reserved for very low, low, moderate, and middle income housing onsite or offsite within the municipality in which the project is located.
d. Any municipal approval or agreement entered into between a municipality and a developer concerning the development of a project subject to subsection a. of this section shall incorporate contractual guarantees and procedures ensuring that any residential unit reserved for very low, low, moderate, and middle income housing shall continue to be so reserved for a period of at least 98 years.
e. For a project subject to subsection a. of this section that is not age-restricted, at least 30 percent of all the very low, low, moderate, and middle income housing units required by this section shall be two bedroom units and at least 20 percent of all the very low, low, moderate, and middle income housing units required by this section shall be three bedroom units.
f. (1) A municipality that is authorized to impose and collect development fees pursuant to section 8 of P.L.2008, c.46 (C.52:27D-329.2), or to impose and collect payments-in-lieu of constructing affordable units pursuant to section 9 of P.L.2008, c.46 (C.52:27D-329.3), may, in its discretion and in lieu of requiring the construction of very low, low, moderate, and middle income housing units pursuant to subsection a. of this section, require a developer to pay a development fee in an amount equal to 30 percent of the total project cost, as determined by the municipal engineer or other qualified municipal official designated by ordinance; provided, however, that the amount of the fee that may be required under this paragraph shall be 25 percent of the total project cost if the project achieves a silver rating according to the Leadership in Energy and Environmental Design Green Building Rating System as adopted by the United States Green Building Council.
(2) A fee required pursuant to paragraph (1) of this subsection shall be paid prior to the issuance of a construction permit for the project.
(3) A municipality shall, by ordinance, either:
(a) deposit all fees collected pursuant to this subsection into an affordable housing trust fund and spend those funds on the development of very low, low, or moderate income housing within the municipality, pursuant to section 8 of P.L.2008, c.46 (C.52:27D-329.2); or
(b) deposit 50 percent of the fees collected pursuant to this subsection into an affordable housing trust fund and spend those funds on the development of very low, low, or moderate income housing within the municipality, pursuant to section 8 of P.L.2008, c.46 (C.52:27D-329.2), and deposit the remaining 50 percent of the fees collected pursuant to this subsection into a community center trust fund and spend those funds on the development of community centers.
g. Nothing in this section shall be construed to affect the obligation of a municipality to plan and zone to provide through its land use regulations a realistic opportunity for a fair share of its region's present and prospective needs for very low, low, and moderate income housing. Nothing in this section shall be construed to alter the obligations of a developer or municipality to comply with the terms of a court- or agency-approved agreement or fair share plan, or to prevent a municipality from creating or enforcing requirements beyond the minimum requirements established in this section. This section shall not apply to a project that is identified by block and lot or other specific reference in a court- or agency-approved agreement or fair share plan.
h. The agency shall, on or before the first day of the fourth month next following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) promulgate rules and regulations, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), to effectuate the provisions of this section.
i. As used in this section:
"Community center" means any indoor or outdoor buildings, spaces, structures, or improvements intended for active or passive recreation, including but not limited to parks, ball fields, meeting halls, and classrooms, accommodating either organized or informal activity and oriented towards serving residents of the municipality.
"Middle income housing" means housing affordable, according to federal Department of Housing and Urban Development or other recognized standards for home ownership and rental costs, and occupied or reserved for occupancy by households with a gross household income equal to more than 80 percent but less than 120 percent of the median gross household income for households of the same size within the housing region in which the housing is located.
2. This act shall take effect on the first day of the fourth month next following enactment, except the agency may take any anticipatory administrative action in advance as shall be necessary for the implementation of this act.
STATEMENT
This bill would require certain projects with 30 or more residential units to reserve 25 percent of the units for very low, low, moderate, and middle income housing. The bill establishes a schedule under which a developer would be required to complete a certain percentage of the very low, low, moderate, and middle income housing units upon the completion of a certain percentage of the market rate housing units. The municipality would be permitted to withhold the certificate of occupancy for market rate units, at any stage of development, if the requirements of this schedule are not satisfied. The developer would be permitted to develop the residential units reserved for very low, low, moderate, and middle income housing offsite of the project, provided that the units are developed within the municipality in which the project is located. Any residential unit reserved for very low, low, moderate, and middle income housing would have to continue to be so reserved for a period of at least 98 years, according to the current affordability standards. For a project that is not age-restricted, at least 30 percent of all the very low, low, moderate, and middle income housing units would have to be two bedroom units and at least another 20 percent of these units would have to be three bedroom units.
Under the bill a municipality may, instead of requiring the construction of very low, low, moderate, and middle income housing units, require a developer to pay a development fee in an amount equal to 30 percent of the total project cost; provided, however, that the amount of that fee would be 25 percent of the total project cost if the project achieves a silver rating according to the Leadership in Energy and Environmental Design Green Building Rating System as adopted by the United States Green Building Council. If such a fee is required, it would have to be paid prior to the issuance of a construction permit for the project. These fees would have to be placed into an affordable housing trust fund and spent on the development of very low, low, or moderate income housing within the municipality. Alternatively, half of these fees may be placed into an affordable housing trust fund and spent on the development of very low, low, or moderate income housing within the municipality, and the remaining half placed into a community center trust fund and spent on the development of community centers.
Nothing in this bill would affect the obligation of a municipality to plan and zone to provide through its land use regulations a realistic opportunity for a fair share of its region's present and prospective needs for very low, low, and moderate income housing. Additionally, nothing in this bill would alter the obligations of a developer or municipality to comply with the terms of a court- or agency-approved agreement or fair share plan, or to prevent a municipality from creating or enforcing requirements beyond the minimum requirements established in this section. Also, the bill would not apply to a project that is identified by block and lot or other specific reference in a court- or agency-approved agreement or fair share plan.
Lastly, the bill requires the New Jersey Housing and Mortgage Finance Agency to adopt rules and regulations effectuating the provisions of the bill on or before the first day of the fourth month next following the effective date of the bill.
