In case you were wondering where New Jersey Governor Chris Christie stands on S-1, the comprehensive affordable housing reform bill which passed the State Senate on June 10, 2010, and the stalling of companion legislation in the Assembly, here is the statement from the Governor’s Press Secretary Michael Drewniak which was released a few minutes ago:

It is time for the Assembly to finish the job of eliminating the Council on Affordable Housing, reforming New Jersey’s outdated and ineffective affordable housing rules and permanently repealing the 2.5 percent commercial development fee.  The Senate overwhelmingly passed bipartisan legislation that accomplishes these goals. We urge the Assembly to pass legislation that meets these same objectives, lifting arbitrary mandates on municipalities, rehabilitating substandard housing and eliminating the Council on Affordable Housing.  Any legislation that falls short of these goals falls short entirely.

I think it’s fair to say it sounds like its “all or nothing” on affordable housing reform for now.

Stay tuned….

In response to my earlier blog entry today, several sources in Trenton have confirmed that the stalling in the Assembly of comprehensive affordable housing reform may result in the State Senate refusing to pass a temporary extension of the moratorium on the 2.5% non-residential development fee from June 30, 2010 to October 30, 2010.   Apparently, some members of the State Senate, which has already passed S-1, a comprehensive affordable housing reform bill, are concerned that extending the moratorium will unreasonably delay action on reform.

Furthermore, given Governor Christie’s strong stance on eliminating the Council on Affordable Housing and instituting a major overhaul of affordable housing policy in New Jersey, even if the moratorium got to his desk, there is no guarantee he would sign it as a further delay in the development fee would only take the pressure off the Assembly to move on comprehensive affordable housing reform now.

We will be monitoring this issue throughout the week and for as long as the Legislature stays in session this summer as affordable housing reform is a critical issue to our readers, be they developers, municipal officials, affordable housing activists or professionals who practice in this field.

According to a report in today’s Star Ledger, Assembly Speaker Sheila Oliver (D-Essex) has confirmed that the Assembly will not take up abolishment of the Council on Affordable Housing and comprehensive affordable housing reform prior to the summer recess.  “It will not get a vote in committee this summer but we hope to get it to a point where we can vote on it in the fall,” she said.  The Senate’s version of the bill, S-1, primarily sponsored by Senators Ray Lesniak (D-Union), Kip Batemen (R-Somerset) and Jeff Van Drew (D-Cape May), passed the state Senate on June 10, 2010 by a vote of 28-3, with 9 members not voting.  At the June 17, 2010 hearing before the Assembly Housing and Local Government Committee, Assemblyman Jerry Green (D-Union), who chairs the Committee, indicated that the bill required some changes before he would release it from the Committee.  Several individuals and groups provided testimony regarding the bill, including the New Jersey State League of Municipalities, which proposed changes to the current version of the bill.   This is not welcome news for municipalities currently involved in Mt. Laurel litigation as the status quo will remain in place for the time being.

In anticipation of the delay of comprehensive affordable housing reform by the Assembly, A-3055, a bill to extend the current legislative moratorium on the 2.5% non-residential development fee to October 30, 2010, was introduced in the Assembly on June 24.  A companion Senate bill is expected to be introduced and both bills will be fast-tracked.  The moratorium will continue the exemption for commercial development from payment of an affordable housing development fee equal to 2.5% of the equalized assessed value of the proposed development, provided that the developer has secured preliminary site plan approval by the October 30, 2010 deadline.

At a press conference on Thursday, May 13, Governor Chris Christie outlined what the administration called “a realistic and achievable plan for affordable housing.”  While the Governor’s Office has not yet released any legislative or regulatory proposal to implement the plan, the Governor released a bullet point outline of an “Affordable Housing Plan“ along with  a statement emphasizing that the plan:

creates a standards-based, municipally controlled system with minimal involvement from the State.  New Jersey is facing dramatically different economic, demographic and social circumstances since the original Fair Housing Act was passed 25 years ago, which is why the current affordable housing system must be retired and replaced.  Under the new system, the Council on Affordable Housing (COAH) and State-imposed housing obligations will be abolished and fair, affirmative, locally directed obligations to build low and moderate-income housing will be created.   

As a result of the proposed changes, the rehabilitation of existing housing stock with be encouraged, a process largely neglected in the current system, and the affordable housing system will be moved away from state-controlled mandates and towards a locally-based system that focuses on future development.  The Governor’s proposal calls for a 10 percent affordable housing unit requirement in development projects greater than 10 units (i.e. 2 affordable units for a 20 unit development), and requires a payment to a municipal affordable housing trust fund for projects between 2 and 10 units.  The Governor recommends provisions to give priority housing trust funding for projects that provide special needs housing. 

“These new measures will help to fix a broken system by promoting sensible, predictable and achievable planning to implement change,” said Governor Christie.  “Affordable housing is a responsibility that must be naturally considered as part of normal development and local decision making.  With strictly limited State involvement in the process, we are finally allowing for flexibility and customization that acknowledges our state’s unique economic, community and housing needs.”

In February, Governor Christie created a five-member Housing Opportunity Task Force chaired by former Senator Marcia Karrow to examine the State’s existing approach to affordable housing and present recommendations to fulfill New Jersey’s constitutional obligations in a manner consistent with sound planning and economic growth.  In addition, the Legislature is actively considering reforms to affordable housing through legislation sponsored in the Senate by Senators Raymond Lesniak (D-20), Christopher “Kip” Bateman (R-16) and Jeff Van Drew (D-1) and in the Assembly by Assemblymen Vincent Prieto (D-32) and David Rible (R-11).

“I look forward to working with members of the legislature to adopt a reform plan that empowers municipalities with the flexibility to meet their affordable housing obligations based on the unique situations, circumstances and needs of their respective communities,” added Governor Christie.

Under Governor Christie’s plan, municipalities will have an increased role in determining their affordable housing needs. 

• Municipalities will be required to conduct an inventory of existing affordable housing to determine what housing must be rehabilitated.
• The municipality must then formulate a plan to accomplish the rehabilitation.

New affordable housing construction will be tied to future housing development. 

• Depending on the size of the residential development, affordable housing must be provided either on-site, off-site, or through a payment to the municipality’s affordable housing trust fund in lieu of actual construction.
• Municipalities would be able to use funds in their affordable housing trust funds to support housing rehabilitation within their own municipality or in other municipalities which have significant rehabilitation needs but limited resources.
• Special needs housing will be given priority for both development and funding. 

Also under the proposed plan, the current 2.5% commercial development fee would be repealed, which will help encourage economic growth. 

With regard to zoning, municipalities seeking to comply must demonstrate that undeveloped residentially-zoned land and redevelopment will accommodate the affordable housing requirement.  A municipality seeking protection from legal challenges and court-imposed remedies must develop and adopt a housing element as part of their municipal master plan.

 State involvement in the new process will be substantially reduced. 

• State affordable housing quotas will be abolished
• The Department of Community Affairs’ (DCA) will file municipally approved housing plans and make them publicly available.
• If challenged, the Department of Community Affairs will conduct a review of municipal plans, which is limited to a determination that the plan is factually accurate and consistent with the law.
• The DCA will continue to administer the State Affordable Housing Trust Fund.

Six months after the enactment of proposed legislation, the Fair Housing Act will be repealed and COAH will be abolished. Affordable housing plan certifications granted by COAH will remain in effect and are afforded the continued legal protections until the certifications expire. Municipalities with pending certification requests are permitted to pursue those certifications or may withdraw and develop new plans consistent with the new proposed law.

“Governor Christie and I recognize the affordable housing needs that many people in the state have,” said DCA Acting Commissioner Lori Grifa.  “Unfortunately, the Council on Affordable Housing has often times been more burden than benefit to the point that New Jersey as a whole has fallen far short of its affordable housing goals,” “The Governor’s new affordable housing plan is a fresh approach that gives more control and flexibility to local governments while limiting state involvement. Ultimately, this plan will result in more affordable housing units being built in communities across the state.”

The New Jersey League of Municipalities has also commented on the Administration’s proposal: http://www.njslom.org/letters/ml051310-affordable-housing.html

The Fair Share Housing Center has denounced the Administration’s proposal as more “red tape”: http://fairsharehousing.org/pdf/FSHC_press_release_-_5_13_2010_-_red_tape.pdf

On Friday, March 19, Governor Chris Christie announced that the Housing Opportunity Task Force created by Executive Order 12 had submitted its report to the Governor’s Office and, as a result, he was rescinding the EO through a new EO.  This manuever avoids a showdown over a constitutional challenge to EO 12 – oral argument on the motion filed by the Fair Share Housing Center challenging the EO was scheduled for Monday, March 22 – which was pending before the Appellate Division.

The full text of the Governor’s statement on the status of the Housing Opportunity Task Force created by Executive Order 12 is below:

My administration has received the report of the Housing Opportunity Task Force and will begin immediately reviewing its findings and recommendations.  I want to thank the Chairwoman of the task force, former Senator Marcia Karrow, and the other members for their hard work and service.  It is time for us to chart a new course and implement a sensible planning system that considers economic growth and development along with our affordable housing needs.  I look forward to working with Senators Lesniak and Bateman and Assemblymen Green and Rible in these reform efforts. 

The Task Force was created by Executive Order 12 and was charged with undertaking a review of the affordable housing mission in New Jersey, and examining the regulations and methodologies of COAH, the Fair Housing Act (FHA) and the State Planning Act in meeting the constitutional obligations of the Mt. Laurel court decisions in a manner that is consistent with sound planning and economic growth for the state.  Since the Task Force has now completed its work, the Governor today signed Executive Order 20 rescinding Executive Order 12.

The Task Force was chaired by Senator Karrow and included four other members:  Rutgers University Professor James Hughes, Perth Amboy Mayor Wilda Diaz, Morris Plains Mayor Frank Druetzler, and former Executive Director of the Housing and Mortgage Finance Agency Ira Oskowsky.