| As reported in the Philadelphia Inquirer today, the creation of jobs and construction of homes are jeopardized in New Jersey by Gov. Christie's inaction on removing regulatory barriers to development of starter homes. The article points out that in the Governor's State of the State speech last week he spoke of "finding the path to growth" in New Jersey, but yet has failed to make progress on a number of policies important on economic stimulus, including housing reform.
As the Inquirer article reports, NAIOP New Jersey Chapter, New Jersey Business & Industry Association, International Council of Shopping Centers, New Jersey Builders Association and the New Jersey Chamber of Commerce have all signed a public letter to Governor Christie. While the letter praises the Governor for his efforts to make New Jersey "more business friendly and a place that will incentivize investment"; it also implores him to sign S1/A3447 as a "workable affordable housing policy" needed to "accelerate economic growth". The letter mentions support for the bill's elimination of the Council on Affordable Housing, elimination of the 2.5 percent commercial development fee, and clear municipal obligations.
The letter describes a workable affordable housing policy as one that will " a) provide those who desperately need affordable housing with the opportunity to find such housing; b) create a system that allow municipalities to more appropriately manage growth, including both market rate and affordable housing; c) create realistic and attainable affordable housing goals that allow development community to work hand in hand with local governments. . ."
We share the business community's desire for a workable housing policy that will help the economy rebound. While we believe that the municipal obligations in S1/A3447 are too low, we agree that the bill does provide a workable and predictable framework to get homes built. If Gov. Christie does not move forward with the legislation, he has an alternative route to get the economy moving and homes built: complying with the Appellate Division's order to expeditiously develop new COAH rules.
The Appellate Division of the New Jersey Superior Court has ordered the Christie Administration to stop delaying new COAH rules for municipal obligations for low- and moderate-income homes. These new rules would return to the predictable, well-known system in place in the 1980s and 1990s in New Jersey which created nearly 60,000 homes affordable to low- and moderate-income people. The Court is requiring a sworn certification from DCA Commissioner Lori Grifa every two weeks on progress towards new rules, with the first certification due on January 28, 2011. The Court also said that it would consider appointing a special master to oversee the agency depending on the content of the first report.
The order, which is available here, comes after the Christie Administration openly admitted to the Court that it would not meet a court-imposed deadline of March 8, 2011 for implementation of new rules for the Council on Affordable Housing (COAH). The Court in an October 8, 2010 decision invalidated COAH's prior rules as unconstitutionally giving too much discretion to municipal regulation. The Christie Administration, in a January 10 filing with the Court, said that it was not working on the rules and would not meet the deadline, even though the Court had already explicitly denied COAH permission to delay adopting the rules, a decision that COAH has now appealed to the New Jersey Supreme Court.
The foot- dragging by the Administration has a detrimental domino effect. Municipalities are reluctant to build needed starter homes because they are waiting for potential changes in obligation with the third round COAH rules or new housing legislation. Builders are stuck not knowing if their projects will move forward, and working families, low-income seniors and those with special needs are missing out on housing opportunities.
The "path to growth" Gov. Christie seeks for New Jersey cannot occur without a workable and constitutional resolution of the state's housing policy that will provide predictability for the business community and municipalities and meet the market demand for starter homes throughout the state. |
.gif)
