Bill Text: NJ S2767 | 2022-2023 | Regular Session | Introduced
Bill Title: Appropriates $500 million in federal funds to DCA to support affordable housing development and establishes Affordable Housing Production Fund in HMFA.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-05-26 - Introduced in the Senate, Referred to Senate Budget and Appropriations Committee [S2767 Detail]
Download: New_Jersey-2022-S2767-Introduced.html
Sponsored by:
Senator TROY SINGLETON
District 7 (Burlington)
SYNOPSIS
Appropriates $500 million in federal funds to DCA to support affordable housing development and establishes Affordable Housing Production Fund in HMFA.
CURRENT VERSION OF TEXT
As introduced.
An Act establishing the Affordable Housing Production Fund, supplementing Title 55 of the Revised Statutes, and making an appropriation.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. There is established in the New Jersey Housing and Mortgage Finance Agency a dedicated, non-lapsing fund to be known as the Affordable Housing Production Fund for the purpose of providing financial assistance to municipalities to support the completion of 100-percent affordable housing projects. The fund shall be administered by the agency and shall be credited with moneys that are appropriated by the Legislature and any return on investment on moneys deposited in the fund.
b. (1) The executive director in consultation with the Commissioner of Community Affairs, shall establish an application and review process through which an eligible municipality may receive an allocation of moneys from the fund. In developing the application, the executive director shall analyze the extent to which municipalities may give priority to developers who meet the qualifications described in paragraph (2) of this subsection, and shall develop guidance documents for municipalities related to granting such a priority. The application process shall establish qualifications for an eligible municipality to receive an allocation from the fund.
(2) At minimum, the application shall require an eligible municipality to certify to the executive director that, to the extent possible and allowed pursuant to law, the eligible municipality will give priority to a developer if at least one-third of the developer's employees are female, part of a labor union, or a racial or ethnic minority group.
c. (1) Prior to expending funds from the Affordable Housing Production Fund, the agency shall submit notice to the Joint Budget Oversight Committee, or its successor, within 10 days of the agency's receipt of a qualifying application, as submitted by a municipality through application process established pursuant subsection b. of this section. The Joint Budget Oversight Committee, or its successor, shall have 30 days from receipt of notice from the agency to approve or deny an expenditure of funds from the Affordable Housing Production Fund. In the event the Joint Budget Oversight Committee, or its successor, approves the expenditure requested in a municipality's application, or takes no action related to the notice provided by the agency, the application shall be considered approved and the agency shall disburse the approved allocation from the fund to the municipality.
(2) A notice provided from the agency to the Joint Budget Oversight Committee, or its successor, shall include the name of the municipality that submitted a qualifying application, the amount of funding requested from the municipality to complete the 100-percent affordable housing project, and a description of the 100-percent affordable housing project.
d. Provided that the agency receives a sufficient number of eligible applications, the agency shall reserve not less than 30 percent of any funds deposited in the Affordable Housing Production Fund for 100-percent affordable housing projects which are located within:
(1) a high-performing school district;
(2) a census tract with a poverty rate below the State average;
(3) one-half mile of public transportation; and
(4) three miles of not less than half of the following applicable facilities:
(a) a full-service grocery store or supermarket;
(b) a hospital or medical clinic;
(c) a public school;
(d) a licensed day care service provider;
(e) a Family Success Center operated by the Division of Family and Community Partnerships in the Department of Children and Families;
(f) a One Stop Career Center;
(g) a pharmacy;
(h) a department or retail merchandise store;
(i) a bank or credit union;
(j) a restaurant, not including a fast-food restaurant;
(k) an indoor public recreation facility, including, but not limited to, a civic center, community center, or library;
(l) an outdoor public recreation facility, including, but not limited to, a park or swimming pool;
(m) a medical office, including, but not limited to, the office of a licensed physician, dentist, or optometrist;
(n) a religious institution;
(o) a post office, city hall, or county courthouse; or
(p) a fire or police station.
e. (1) Within 180 days after the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill), and notwithstanding the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, the executive director, in consultation with the Commissioner of Community Affairs, shall immediately upon filing proper notice with the Office of Administrative Law, adopt any rules and regulations necessary to implement the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill).
(2) The rules and regulations adopted pursuant to paragraph 1 of this subsection shall be in effect for a period not to exceed one year after the date of filing. These rules and regulations shall thereafter be adopted, amended, or readopted by the executive director in consultation with the Commissioner of Community Affairs in accordance with the requirements of the "Administrative Procedure Act" P.L.1968, c.410 (C.52:14B-1 et seq.).
f. As used in this section:
"100-percent affordable housing project" means an affordable housing project in which 100-percent of the residential units are constructed for occupancy by low- and moderate-income households and that has been identified in a fair share affordable housing obligation judgment of repose entered into by the municipality as of the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill).
"Eligible municipality" means a municipality which is in compliance with a judgment of repose to address the municipality's affordable housing obligations.
"Executive director" means the Executive Director of the New Jersey Housing and Mortgage and Finance Agency.
"High-performing school district" means a public school district in which not less than 40 percent of the students meet or exceed expectations in math and language arts based on the Grade 4 Partnership for Assessment of Readiness for College and Careers assessment, or any successor assessment method established by the Department of Education.
"Hospital" means a general acute care hospital licensed pursuant to P.L.1971, c.136 (C.26:2H-1 et seq.).
"Judgement of repose" means a grant of compliance or repose by a court of competent jurisdiction certifying compliance with the "Fair Share Housing Act," P.L.1985, c.222 (C.52:27D-301 et al.), including but not limited to a settlement agreement entered in accordance with In Re Adoption of N.J.A.C. 5:96 and 5:97 by New Jersey Council on Affordable Housing, 221 N.J. 1 (2015).
"One Stop Career Center" means any of the facilities established, sponsored or designated by the State, a political subdivision of the State and a Workforce Investment Board in a local area to coordinate or make available State and local programs providing employment and training services or other employment-directed and workforce development programs and activities, including job placement services, and any other similar facility as may be established, sponsored or designated at any later time to coordinate or make available any of those programs, services or activities.
"Poverty rate" means the percentage of households having income, adjusted for household size, below the federal poverty line established and adjusted pursuant to section 2 of the "Community Services Block Grant Act," (42 U.S.C. s.9902).
"Public transportation" means any mode of transit available to the general public with fixed fares and daily scheduled service, without seasonal interruption, which shall at minimum operate Monday through Friday and provide regularly scheduled service during the period between 6:30 a.m. and 9:30 a.m. and the period between 3:00 p.m. and 6:00 p.m.
2. a. There is appropriated to the Division of Disaster Recovery and Mitigation in the Department of Community Affairs $500,000,000 in federal funds allocated to the State from the federal "Coronavirus State Fiscal Recovery Fund" established pursuant to the federal "American Rescue Plan Act", Pub.L.117-2. Such amounts shall be deposited in to the Affordable Housing Production Fund, established pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill), for the purposes of the fund, and of such amounts, not more than 2.5 percent, subject to the division's review and approval, shall be utilized by the New Jersey Housing and Mortgage Finance Agency for organizational, administrative and other work and services, including salaries, equipment, services, and materials necessary to administer the activities authorized by this subsection. The New Jersey Housing and Mortgage Finance Agency shall enter into a memorandum of understanding or grant agreement, as applicable, with the division to effectuate the purposes of this subsection, to define what constitutes appropriate administrative costs, and to ensure compliance with federal rules and guidance, including with respect to the federal "American Rescue Plan Act," Pub.L.117-2.
b. The division shall be the State's grant manager for funds received by the State pursuant to the federal "American Rescue Plan Act," Pub.L.117-2, and shall ensure compliance with all applicable federal rules and regulations in the implementation of P.L. , c. (C. ) (pending before the Legislature as this bill), including, but not limited to, submitting all required reporting and documentation to the United States Department of the Treasury in accordance with federal rules, including with respect to the federal "American Rescue Plan Act," Pub.L.117-2. As the State's grant manager for funds received by the State pursuant to the federal "American Rescue Plan Act," Pub.L.117-2, the division is authorized to utilize not more than one percent of the funds appropriated pursuant to this section to provide for the division's organizational, administrative, and other work and services, including salaries, services, equipment, and materials necessary to administer the applicable provisions of P.L. , c. (C. ) (pending before the Legislature as this bill).
c. Notwithstanding the provisions of subsection a. of this section to the contrary, the division may transfer the uncommitted balance of any funds made available pursuant to this section for any use authorized pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill). The division shall submit notice to the Joint Budget Oversight Committee, or its successor, no less than five calendar days before the date of the transfer. The notice shall indicate the amount of the transferred funds and the purpose for which the funds are transferred.
3. This act shall take effect immediately.
STATEMENT
This bill establishes the Affordable Housing Production Fund for the purpose completing any 100-percent affordable housing project identified in a fair share affordable housing obligation judgment of repose or settlement agreement, pertaining to a municipality's affordable housing obligations required pursuant to the "Fair Housing Act," P.L.1985, c.222 (C.52:27D-301 et al.), entered into by the municipality as of the effective date of the bill. The fund would be supported by the allocation of $500 million in federal funds allocated to New Jersey from the federal "Coronavirus State Fiscal Recovery Fund" established pursuant to the federal "American Rescue Plan Act", Pub.L.117-2.
The fund would be administered by the New Jersey Housing and Mortgage Finance Agency which, in consultation with the Commissioner of Community Affairs, would establish a process by which municipalities that are in compliance with a fair share affordable housing obligation settlement agreement or judgement of repose to address the municipality's affordable housing obligations, may submit an application for assistance though the fund. The application would require a municipality to certify that, to the extent possible and allowed pursuant to law, the municipality will give priority to a developer if at least one-third of the developer's employees are female, part of a labor union, or part of a racial or ethnic minority group.
Provided that the New Jersey Housing and Mortgage Finance Agency a sufficient number of eligible applications, the bill requires the agency to reserve not less than 30 percent of any funds deposited in the Affordable Housing Production Fund for 100-percent affordable housing projects located within (1) a high-performing school district; (2) a census tract with a poverty rate below the State average; (3) one-half mile of public transportation; and (4) three miles of not less than half of the following applicable facilities: a full-service grocery store or supermarket; a hospital or medical clinic; a public school; a licensed day care service provider; a Family Success Center; a One Stop Career Center; a pharmacy; a department or retail merchandise store; a bank or credit union; a restaurant, not including a fast-food restaurant; an indoor public recreation facility; an outdoor public recreation facility; a medical office; a religious institution; a post office, city hall, or county courthouse; or a fire or police station.
Prior to expending funds from the Affordable Housing Production Fund, the agency would be required to submit notice to the Joint Budget Oversight Committee for approval. A notice provided from the agency to the Joint Budget Oversight Committee would be required to include the name of the municipality that submitted a qualifying application, the amount of funding requested from the municipality to complete the 100-percent affordable housing project, and a description of the 100-percent affordable housing project. In the event the Joint Budget Oversight Committee approves the expenditure requested in a municipality's application or takes no action related to the notice provided by the agency, the application would be considered approved and the approved allocation from the fund would be disbursed to the municipality.
The bill provides that the New Jersey Housing and Mortgage Finance Agency will enter into a memorandum of understanding or grant agreement, as applicable, with the Division of Disaster Recovery and Mitigation in the Department of Community Affairs to effectuate the purposes of the bill, to establish appropriate administrative costs, and to ensure compliance with federal rules and guidance, including with respect to the "American Rescue Plan Act," Pub.L.117-2.
