Bill Text: NJ S3453 | 2024-2025 | Regular Session | Introduced
Bill Title: Provides for preservation bonus credit against affordable housing obligations to certain municipalities.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2024-06-17 - Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee [S3453 Detail]
Download: New_Jersey-2024-S3453-Introduced.html
Sponsored by:
Senator ANTHONY M. BUCCO
District 25 (Morris and Passaic)
SYNOPSIS
Provides for preservation bonus credit against affordable housing obligations to certain municipalities.
CURRENT VERSION OF TEXT
As introduced.
An Act providing for preservation bonus credits against affordable housing obligations to certain municipalities and amending P.L.1985, c.222.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 11 of P.L.1985, c.222 (C.52:27D-311) is amended to read as follows:
11. a. In adopting its housing element, the municipality may provide for its fair share of low- and moderate-income housing by means of any technique or combination of techniques which provide a realistic opportunity for the provision of the fair share. The housing element shall contain an analysis demonstrating that it will provide such a realistic opportunity, and the municipality shall establish that its land use and other relevant ordinances have been revised to incorporate the provisions for low- and moderate-income housing. In preparing the housing element, the municipality shall consider the following techniques for providing low- and moderate-income housing within the municipality, as well as such other appropriate techniques as have been established through applicable precedent and may be employed by the municipality:
(1) Rezoning for densities necessary to assure the economic viability of any inclusionary developments, either through mandatory set-asides or density bonuses, as may be necessary to meet all or part of the municipality's fair share in accordance with the provisions of subsection h. of this section;
(2) Determination of the total residential zoning necessary to assure that the municipality's fair share is achieved;
(3) Determination of measures that the municipality will take to assure that low- and moderate-income units remain affordable to low- and moderate-income households for an appropriate period of not less than the period required by the regulations adopted by the Department of Community Affairs pursuant to section 21 of P.L.1985, c.222 (C.52:27D-321);
(4) A plan for infrastructure expansion and rehabilitation and conversion or redevelopment of unused or underutilized real property, including existing structures, if necessary to assure the achievement of the municipality's fair share of low- and moderate-income housing;
(5) Donation or use of municipally owned land or land condemned by the municipality for purposes of providing low- and moderate-income housing;
(6) Tax abatements for purposes of providing low- and moderate-income housing;
(7) Utilization of funds obtained from any State or federal subsidy toward the construction of low- and moderate-income housing;
(8) Utilization of municipally generated funds toward the construction of low- and moderate-income housing; and
(9) The purchase of privately owned real property used for residential purposes at the value of all liens secured by the property, excluding any tax liens, notwithstanding that the total amount of debt secured by liens exceeds the appraised value of the property, pursuant to regulations promulgated by the Commissioner of Community Affairs pursuant to subsection b. of section 41 of P.L.2000, c.126 (C.52:27D-311.2).
b. The municipality may provide for a phasing schedule for the achievement of its fair share of low- and moderate-income housing.
c. (Deleted by amendment, P.L.2008, c.46)
d. Nothing in P.L.1985, c.222 (C.52:27D-301 et al.) shall require a municipality to raise or expend municipal revenues in order to provide low- and moderate-income housing.
e. When a municipality's housing element includes the provision of rental housing units in a community residence for the developmentally disabled, for the mentally ill, or for persons with head injuries, as those terms are defined in section 2 of P.L.1977, c.448 (C.30:11B-2), or in transitional housing, which will be affordable to persons of low- and moderate-income, and for which adequate measures to retain such affordability pursuant to paragraph (3) of subsection a. of this section are included in the housing element, those housing units shall be fully credited towards the fulfillment of the municipality's fair share of low- and moderate-income housing. A municipality shall not credit transitional housing units towards more than 10 percent of the municipality's fair share obligation.
f. It having been determined by the Legislature that the provision of housing under P.L.1985, c.222 (C.52:27D-301 et al.) is a public purpose, a municipality or municipalities may utilize public monies to make donations, grants or loans of public funds for the rehabilitation of deficient housing units and the provision of new or substantially rehabilitated housing for low- and moderate-income persons, providing that any private advantage is incidental.
g. A municipality that has received approval of its housing element and fair share plan for the current round, and that has actually effected the construction of the affordable housing units it is obligated to provide, may amend its affordable housing element or zoning ordinances without losing immunity from exclusionary zoning litigation.
h. Whenever affordable housing units are proposed to be provided through an inclusionary development, a municipality shall provide, through its zoning powers, incentives to the developer, which shall include increased densities and reduced costs.
i. A municipality and a developer may request a modification of a compliance certification involving reduced affordable housing set-asides or increased densities to ensure the economic feasibility of an inclusionary development, if any such application demonstrates how any shortfall in meeting the municipal fair share obligation will then be addressed. Such a request may be granted only if the municipality and developer have demonstrated that the project has been impacted by market conditions beyond their reasonable control.
j. A municipality may enter into an agreement with a developer or residential development owner to provide a preference for affordable housing to low- and moderate-income veterans who served in time of war or other emergency, as defined in section 1 of P.L.1963, c.171 (C.54:4-8.10), of up to 50 percent of the affordable units in that particular project. This preference shall be established in the applicant selection process for available affordable units so that applicants who are veterans who served in time of war or other emergency, as referenced in this subsection, and who apply within 90 days of the initial marketing period shall receive preference for the rental of the agreed-upon percentage of affordable units. After the first 90 days of the initial 120-day marketing period, if any of those units subject to the preference remain available, then applicants from the general public shall be considered for occupancy. Following the initial 120-day marketing period, previously qualified applicants and future qualified applicants who are veterans who served in time of war or other emergency, as referenced in this subsection, shall be placed on a special waiting list as well as the general waiting list. The veterans on the special waiting list shall be given preference for affordable units, as the units become available, whenever the percentage of preference-occupied units falls below the agreed upon percentage. Any agreement to provide affordable housing preferences for veterans pursuant to this subsection shall not affect a municipality's ability to receive credit for the unit.
k. In the fourth round, and in subsequent rounds of affordable housing obligations, a municipality shall be able to receive one credit against its affordable housing obligation for each unit of low- or moderate-income housing, and shall not receive bonus credit for any particular type of low- or moderate-income housing, unless authority to obtain bonus credit is expressly provided pursuant to this section, or other sections of the "Fair Housing Act," P.L.1985, c.222 (C.52:27D-301 et al.). A municipality shall not receive more than one type of bonus credit for any unit, and a municipality shall not be permitted to satisfy more than 25 percent of its prospective need obligation in the fourth round or any subsequent round through the use of bonus credits. This subsection shall not be construed to limit the ability of a municipality to receive a unit of credit for a low- or moderate-income housing unit that is subject to affordability controls that are scheduled to expire, but are extended pursuant to section 21 of P.L.1985, c.222 (C.52:27D-321), to the extent that this affordability control extension would otherwise generate this credit. As a part of a fair share plan and housing element adopted pursuant to subsection f. of section 3 of P.L.2024, c.2 (C.52:27D-304.1), a municipality shall:
(1) receive one unit of credit and one bonus credit for each unit of low- or moderate-income housing for individuals with special needs or permanent supportive housing, as those terms are defined in section 2 of P.L.2004, c.70 (C.34:1B-21.24);
(2) receive one unit of credit and one-half bonus credit for each low- or moderate-income ownership unit created in partnership sponsorship with a non-profit housing developer;
(3) receive one unit of credit and one-half bonus credit for each unit of low- or moderate-income housing located within a one-half mile radius, or one-mile radius for projects located in a Garden State Growth Zone, as defined in section 2 of P.L.2011, c.149 (C.34:1B-243), surrounding a New Jersey Transit Corporation, Port Authority Transit Corporation, or Port Authority Trans-Hudson Corporation rail, bus, or ferry station, including all light rail stations. For the purpose of this subparagraph, the distance from the bus, rail, or ferry station to a housing unit shall be measured from the closest point on the outer perimeter of the station, including any associated park-and-ride lot, to the closest point of the housing project property;
(4) receive one unit of credit and one-half bonus credit for a unit of age-restricted housing, provided that a bonus credit for age-restricted housing shall not be applied to more than 10 percent of the units of age-restricted housing constructed in compliance with the Uniform Housing Affordability Controls promulgated by the New Jersey Housing and Mortgage Finance Agency in a municipality that count towards the municipality's affordable housing obligation for any single 10-year round of affordable housing obligations;
(5) receive one unit of credit and one-half bonus credit for each unit of low- or moderate-income family housing with at least three bedrooms above the minimum number required by the bedroom distribution. This bonus credit shall be calculated by taking into account the full municipal fair share plan and housing element, and the number of units with at least three bedrooms required for projects satisfying the minimum 50 percent family housing requirements. A municipality shall receive the bonus credit pursuant to this paragraph for each unit with at least three bedrooms that are above the minimum number required for the bedroom distribution determined pursuant to the Uniform Housing Affordability Controls promulgated by the New Jersey Housing and Mortgage Finance Agency;
(6) receive one unit of credit and one-half bonus credit for a unit of low- or moderate-income housing constructed on land that is or was previously developed and utilized for retail, office, or commercial space;
(7) receive one unit of credit and one-half bonus credit for each existing low- or moderate-income rental housing unit for which affordability controls are extended for a new term of affordability, in compliance with the Uniform Housing Affordability Controls promulgated by the New Jersey Housing and Mortgage Finance Agency, and the municipality contributes funding towards the costs necessary for this preservation;
(8) receive one unit of credit and one bonus credit for each unit of low- or moderate-income housing in a 100 percent affordable housing project for which the municipality contributes toward the costs of the project. This contribution may consist of: (a) real property donations that enable siting and construction of the project; or (b) contributions from the municipal affordable housing trust fund in support of the project, if the contribution consists of no less than three percent of the project cost;
(9) receive one unit of credit and one-half bonus credit for each unit of very low-income housing for families above the 13 percent of units required to be reserved for very low-income housing pursuant to section 7 of P.L.2008, c.46 (C.52:27D-329.1). In accordance with section 7 of P.L.2008, c.46 (C.52:27D-329.1), a municipality shall not be required to provide that a specific percentage of the units in any specific project be reserved as very low-income housing in order to obtain this bonus credit, and the 13 percent level, for the purpose of bonus credits, shall be calculated against the full prospective need obligation provided pursuant to the fair share plan; [and]
(10) receive one unit of credit and one bonus credit for each unit of low- or moderate-income housing created by transforming an existing rental or ownership unit from a market rate unit to an affordable housing unit. A municipality may only rely on this bonus credit as part of its fair share plan and housing element if the municipality demonstrates that a commitment to follow through with this market to affordable agreement has been made and: (a) this agreement has been signed by the property owner; or (b) the municipality has obtained ownership of the property; and
(11) receive preservation bonus credits based on formulas developed by the department, in consultation with the Department of Environmental Protection, if the municipality or municipality's boundaries have been determined by the department, in consultation with the Department of Environmental Protection, to contain or sustain:
(a) critical headwaters that are designated as a primary source of drinking water for a population of at least 1,000,000 according to the most recent federal decennial census, and the municipality has enacted regulations and committed to enforcement mechanisms to safeguard the drinking water quality of the critical headwaters. The formula developed pursuant to this subparagraph shall, at a minimum, establish classifications of different local watershed factors, regulatory structures, and enforcement mechanisms to provide increased preservation bonus credits to municipalities that more effectively safeguard the drinking water quality and ensure the long-term viability and sustainability of the critical headwaters;
(b) other water resources, including rivers, streams, tributaries, lakes, reservoirs, aquifers, estuaries, vernal pools, or connected woodland corridors and the municipality has enacted regulations and committed to enforcement mechanisms to safeguard the water resources and the role that the unique resource plays within its broader ecosystem. The formula developed pursuant to this subparagraph shall, at a minimum, establish classifications of different water resource-specific factors, regulatory structures, and enforcement mechanisms to provide increased preservation bonus credits to municipalities that more effectively safeguard the water resource;
(c) land conservation resources, including parks, nature reserves, conservation easements, and farmland or other low-density land use areas to safeguard natural habitats and biodiversity within the resource's broader ecosystem. The formula developed pursuant to this subparagraph shall, at a minimum, establish classifications of different land conservation resource factors, regulatory structures, and enforcement mechanisms to provide increased preservation bonus credits to municipalities that more effectively safeguard the land conservation resources;
(d) wildlife or habitat resources, including areas identified to include unique natural habitats and biodiversity within the resource's broader ecosystem, with additional bonus credits provided to municipalities that more effectively protect endangered and threatened species. The formula developed pursuant to this subparagraph shall, at a minimum, establish classifications of different wildlife and habitat resource factors, regulatory structures, and enforcement mechanisms to provide increased preservation bonus credits to municipalities that more effectively safeguard the wildlife and habitat resources;
(e) climate resilience resources, including areas identified that help to protect people, property, and other resources from sea-level rise, extreme weather events, and temperature changes. The formula developed pursuant to this subparagraph shall, at a minimum, establish classifications of different climate resilience resource factors, regulatory structures, and enforcement mechanisms to provide increased preservation bonus credits to municipalities that more effectively mitigate climate-related risks;
(f) historical or cultural resources, including areas identified that preserve significant cultural and historical landmarks or protected archaeological sites. The formula developed pursuant to this subparagraph shall, at a minimum, establish classifications of different historical and cultural resource factors, regulatory structures, and enforcement mechanisms to provide increased preservation bonus credits to municipalities that more effectively safeguard the most important historical and cultural resources;
(g) community engagement or education resources, including areas or programs identified as playing significant roles in engaging residents through educational initiatives, workshops, and community events to raise awareness about environmental issues and promote sustainable practices or engage citizen participation in environmental monitoring and data collection efforts to enhance understanding and stewardship of local ecosystems. The formula developed pursuant to this subparagraph shall, at a minimum, establish classifications of different community engagement and education resource factors, regulatory structures, and enforcement mechanisms to provide increased preservation bonus credits to municipalities that more effectively use or employ community engagement and education resources to engage their communities; or
(h) sustainable building practice resources, that incentivize the design, construction, and operation of buildings in manners that reduce their environmental impact while enhancing the health and well-being of their occupants, including improving energy efficiency, conserving water, utilizing sustainable materials, creating healthier indoor environments, siting a building sustainably, and reducing waste. The formula developed pursuant to this subparagraph shall, at a minimum, establish classifications of different sustainable building practice factors, structures that incentivize implementation of such practices, and mechanisms to evaluate implementation of the practices to provide increased preservation bonus credits to municipalities that more effectively incentivize sustainable building practices.
The factors for the formulas developed pursuant to this paragraph shall, as applicable, incorporate evaluations of the ecological importance, the habitat diversity and biodiversity, the rarity or uniqueness, and the broader societal, cultural, recreational, educational, and aesthetic value of an individual resource.
l. A municipality may not satisfy more than 30 percent of the affordable housing units, exclusive of any bonus credits, to address its prospective need affordable housing obligation through the creation of age-restricted housing. A municipality shall satisfy a minimum of 50 percent of the actual affordable housing units, exclusive of any bonus credits, created to address its prospective need affordable housing obligation through the creation of housing available to families with children and otherwise in compliance with the requirements and controls established pursuant to section 21 of P.L.1985, c.222 (C.52:27D-321). A municipality shall satisfy a minimum of 25 percent of the actual affordable housing units, exclusive of any bonus credits, to address its prospective need affordable housing obligation, through rental housing, including at least half of that number available to families with children. All units referred to in this section shall otherwise be in compliance with the requirements and controls established pursuant to section 21 of P.L.1985, c.222 (C.52:27D-321).
m. All parties shall be entitled to rely upon regulations on municipal credits, adjustments, and compliance mechanisms adopted by the Council on Affordable Housing unless those regulations are contradicted by statute, including but not limited to P.L.2024, c.2 (C.52:27D-304.1 et al.), or binding court decisions.
n. P.L.2024, c.2 (C.52:27D-304.1 et al.) shall not be construed to require a municipality to fund infrastructure improvements for affordable housing projects beyond any commitments made in a fair share plan and housing element that has been provided with compliance certification. A municipality may fund infrastructure improvements for affordable housing projects, through the adoption of a development agreement with the applicant, beyond any commitments made in a fair share plan and housing element that has been provided with compliance certification.
(cf: P.L.2024, c.2, s.24)
2. This act shall take effect immediately.
STATEMENT
This bill provides preservation bonus credits against affordable housing obligations to certain municipalities.
Under the bill, the Department of Community Affairs (DCA), in consultation with the Department of Environmental Protection (DEP) is required to designate: (1) the location of critical headwaters drinking water resources, (2) other water resources, (3) land conservation resources, (4) wildlife and habitat resources, (5) climate resilience resources, (6) historical and cultural resources, (7) community engagement and education resources, and (8) sustainable building practice resources.
Under the bill, a municipality with boundaries that contain, or a municipality that sustains, such resources and that enacts regulations and commits to enforcement mechanisms to safeguard the resources would receive preservation bonus credits towards its affordable housing requirement based on formulas developed by DCA, in consultation with DEP. The formulas developed would each include different factors, as specified in the bill.
The bill requires that formula factors incorporate, as applicable, evaluations of the ecological importance, the habitat diversity and biodiversity, the rarity or uniqueness, and the broader societal, cultural, recreational, educational, and aesthetic value of individual resources.
The preservation bonus credits received by a municipality, as established by the bill, are to count against the 25 percent cap, under current law, on the use of bonus credits that can be applicable to the municipality's prospective need obligation in the fourth round or any subsequent round.
