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Governor Calls for Assembly to Pass Comprehensive Affordable Housing Reform Now

Posted by Phil Morin on June 28, 2010

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It is time for the Assembly to finish the job of eliminating the Council on Affordable Housing, reforming New Jersey’s outdated and ineffective affordable housing rules and permanently repealing the 2.5 percent commercial development fee.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….

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Extension of Moratorium on 2.5% Non-Residential Developer Fee In Doubt

Posted by Phil Morin on June 28, 2010

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.

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Affordable Housing Reform Delayed Until Fall

Posted by Phil Morin on June 28, 2010

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.

Posted in Affordable Housing, Legislation | 1 Comment »

Gov. Christie Announces “Realistic and Achievable Plan” for Affordable Housing

Posted by Phil Morin on May 13, 2010

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

Posted in Affordable Housing, Legislation | Leave a Comment »

NJDEP Sets Meeting on Remedial Priority Scoring System

Posted by Phil Morin on May 10, 2010

The New Jersey Department of Environmental Protection has announced a public hearing on the Remediation Priority Scoring system.   The details, as contained in a release from the Department, are below:

Development of the Remedial Priority Scoring (RPS) system was mandated pursuant to N.J.S.A.58:10-23.16 as amended in section 39 of P.L.2009, c.60 (Site Remediation Reform Act). A system has been developed to measure each site’s relative risk to human and ecological health.

A public meeting is scheduled for May 24, 2010 from 9:00 am to 11:30 at the Public Hearing Room in the Department of Environmental Protection Headquarters at 401 East State Street, Trenton to explain the system and demonstrate the technologies and rationale behind the development of the system. Department staff will describe the system in detail and address questions and comments.

Please visit the following web address for more information:

 

http://www.nj.gov/dep/srp/srra/rps

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Governor Christie Signs “Time of Application” Legislation

Posted by Phil Morin on May 5, 2010

On Wednesday, May 5, Governor Chris Christie signed S-82 into law.  The new law amends the Municipal Land Use Law to abolish, except in limited circumstances, the “Time of Decision” rule adopted by the courts which had previously allowed municipalities to change zoning ordinances, including eliminating permitted uses, at any time prior to a final decision of a land use board.  The new law creates a “Time of Application” standard, under which an applicant may proceed before a land use board based upon the zoning ordinances in effect at the time of filing an application without fear that a subsequent ordinance adoption will scuttle their application.  Many municipal officials opposed the signing of this bill; however, it enjoyed widespread bipartisan support in both houses of the Legislature and the Governor had previously committed to signing some form of change to the “Time of Decision” rule during his campaign.

According to a statement from the Governor’s Office:

Governor Chris Christie today signed legislation to simplify and make more predictable regulations governing land-use development applications at the municipal level, encouraging development and lowering costs for New Jersey businesses and job creators.

S-82, commonly referred to as “time of application” or “time of decision” legislation, provides that a land-use development application will be governed by the municipal development regulations in effect at the time of the application.  Exceptions are provided for those rules related to health and public safety. 

The legislation does not guarantee approval of a land-use application, but instead allows for the application process to move forward without the unnecessary hurdle of constantly changing requirements while the application is pending.

“New Jersey’s businesses and entrepreneurs – the job creators of our state – invest considerable amounts of financial and human resources in navigating a vast landscape of rules and regulations at the state and local level,” said Governor Christie.  “Prior to the signing of this legislation, the system allowed for those rules to be changed in the middle of the process, even after an application has been submitted.  This legislation makes common sense changes to improve the application process and move New Jersey in the right direction of providing a friendlier environment for job creation, while keeping safeguards for public health and safety in place.”

Currently, regulations do not “lock-in” until preliminary approval is granted for an application, allowing municipalities to change the requirement of an application after its initial submission, resulting in a business that is investing in New Jersey having to start the costly, time-intensive application process over, or abandoning the project altogether.

Posted in Legislation, New Jersey Government, Rezoning | Leave a Comment »

Governor’s Red Tape Review Commission Report Released

Posted by Phil Morin on April 19, 2010

The Governor’s Office released the report of the Red Tape Review Group today.  The following is the text of the press release announcing the public dissemination of the report: 

The Red Tape Review Group, chaired by Lt. Governor Kim Guadagno, today presented its final report to Governor Chris Christie and released it to the public. 

Created by Executive Order 3, the Red Tape Review Group, a bipartisan body with representatives from both the Legislative and Executive Branches of State government, was empowered to “review all pending and proposed rules and regulations” frozen under Executive Order 1, as well as all operative Executive Orders from previous administrations. 

“I want to thank Lt. Governor Guadagno and the members of the Red Tape Review Group for undertaking this important work to begin unraveling the layers of burdensome rules and regulations that make it difficult and expensive for New Jersey’s businesses to succeed,” said Governor Christie. “The work of this bipartisan group, done with transparency and considerable dialogue with the public, has resulted in a wide-ranging list of recommendations for my consideration.  I look forward to continuing to work with the Lt. Governor, the members of the Group and the Legislature to act on these recommendations and achieve additional reforms to improve New Jersey’s climate for economic growth and job creation.” 

In submitting the final report, Lt. Governor Guadagno said, “This process clearly demonstrated that there is bipartisan agreement on the poor condition of New Jersey’s regulatory climate and the need for action to cut through the red tape while maintaining a strong commitment to public health and safety.  What we do here in Trenton affects job creators and families throughout the State and we have a clear opportunity to act to change that reality in a positive way.  I want to thank the other members of the Red Tape Review Group and their staffs for their work as well as the various stakeholders who added there perspective.” 

In addition to Lt. Gov. Guadagno, the Red Tape Review Group included Senator Steve Oroho, Assemblyman John Burzichelli, Assemblyman Scott Rumana, Senator Barbara Buono, Acting Commissioner of the Department of Community Affairs Lori Grifa, Commissioner of the Department of Environmental Protection Bob Martin, and Chief Counsel to the Governor Jeff Chiesa. 

Assemblyman John J. Burzichelli said, “New Jerseyans have been waiting for too long for us to find ways to reduce the mountains of regulation affecting their daily lives, while still honoring our responsibility to protect the environment and citizens.  From the hours of public hearings and working alongside the Lt. Governor, it was clear that she and this committee were serious about making this process fair and bipartisan.  The Assembly has already taken steps to ease burdensome regulations, and now this report gives us a blueprint for how to get more reform done in Trenton.”  Said Assemblyman Scott Rumana: ”This process gave us a glimpse into the more than 25,000 pages of New Jersey regulations that currently exist.  Regulators forget that the volumes of rules have had a tremendous effect on everyone in New Jersey, from the young entrepreneur who wants to open a business, to the new family trying to build a home.  We’ve got to get a handle on this process and the Red Tape Review Group’s work has given us a good start. 

“At a time like this in our economy, we cannot afford to block economic development through onerous and often ridiculous regulation, said Senator Steve Oroho. “We can and must find ways to restore common sense to the regulatory process and make State government more accountable and responsive to the people we serve.”

In its first 90 days, The Red Tape Review Group conducted a transparent and bipartisan review to provide tangible and realistic recommendations that will lead to economic growth and job creation.  The Group has recommended the withdrawal or modification of 16 of the 128 rules (12.5 percent) that were frozen by Executive Order 1.  If 12.5 percent of the remaining 26,000 pages of rules were to be withdrawn or modified, continuing the Red Tape Review process could result in the elimination of over 3,000 pages of rules.  This is the equivalent of approximately 111 chapters from the administrative code.   

While the first 90 days required agencies and departments to review frozen proposed rules and regulations, Executive Order No. 2 also called for the review of existing regulations for compliance with the common sense principles and were given 180 days to complete the task. 

Long-Term Legislative, Regulatory and Policy Recommendations. 

The Red Tape Review Group also provided long-term legislative, regulatory and policy recommendations to ensure New Jersey government continues to streamline and more effectively coordinate services that impact economic growth and job creation.

Improving and Expediting the Rulemaking Process.  The testimony received by the Red Tape Review Group made clear that it is overly difficult for a State agency to alter a rule proposal based upon reasonable and justifiable public comment.  The “Administrative Procedure Act” should be revised to permit State agencies to adopt substantive changes to proposed rules based on public comment without needing to undergo the entire rule-making process anew, provided that an additional public comment period is provided prior to the altered rule taking effect.

Giving Entities the Ability to Combat Unfunded Mandates.  Provide for new and expanded powers to combat unfunded mandates, including permitting the Council on Local Mandates to proactively seek out mandates, enlarging the number of groups who can bring complaints to the Council, and enlisting the assistance of the State’s law schools to undertake a review of all mandates presently contained in the statutory law and administrative code.

Following “Common Sense Principles.”    State agencies should adopt the “Common Sense Principles” for rule-making.

Creating Consistent and Timely Review of Regulation and Rule Effectiveness.  Establish a Red Tape Review Group to succeed the 90-day Red Tape Review Group.

For a copy of the report, click HERE.

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Housing Opportunity Task Force Submits Report; Governor Rescinds EO

Posted by Phil Morin on March 19, 2010

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.

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Assembly Passes Time of Decision Bill

Posted by Phil Morin on March 16, 2010

As expected, the State Assembly passed A-437, the “Time of Decision” bill, amending the Municipal Land Use Law to codify a change to the judicially-created “time of decision” rule by a vote of 51-14-11 (for-against-abstain) with 4 members of the lower house not voting. 

The bill states that municipal development regulation in effect on the date of filing of an application for development will control the review and any determinations relating to the application.   As a result, any changes to local ordinances following the filing of an application, except ordinances relating to health and public safety, shall not apply to pending applications.

The bill (S-82/A-437) will now move to the Governor for consideration.  The Governor is expected to sign the bill.

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Time Running Out on “Time of Decision” Rule?

Posted by Phil Morin on March 11, 2010

Time Running Out on Time of Decision Rule?

A bill (S-82) to amend the Municipal Land Use Law to change the judicially-created “time of decision” rule has passed the State Senate (27-7).  Passage of the bill is seen as a win for developers as it eviscerates a municipality’s ability to change zoning requirements in response to an application for development.  Critics, including the State League of Municipalities and environmental groups such as the Sierra Club, argue that municipalities should have the ability to update their zoning ordinances following the filing of an application as the zoning may be inconsistent with the municipality’s master plan or the impact of a proposed use or the density of the development may not have been contemplated when the zoning ordinance was originally enacted. 

The focus now moves on to the Assembly, where the lower house is expected to take up the bill (A-437) on Monday, March 15.

While Governor Chris Christie has not publicly expressed his support for the bill, it is expected that the Governor will sign the bill if it passes the Assembly.  The Governor, when questioned about the “time of decision” rule during the 2009 gubernatorial campaign, voiced his support for a legislative change to the current rule and enacted a similar “time of application” standard for agency approval and permits for the State of New Jersey through Executive Order No. 2.

Posted in Environmental Issues, Legislation, Rezoning | Leave a Comment »