If bills recently introduced in the Assembly and Senate become law, municipalities may not have the right to transfer up to half of their affordable housing obligations pursuant to Regional Contribution Agreements (“RCAs”). Both bills, A-3857 and S-2451, will prohibit a municipality to address any portion of its fair share obligation by using RCAs entered into or approved by COAH or a court after June 1, 2006. Instead of using RCAs to fund rehabilitation activity in urban centers, funds will be made available to municipalities for the rehabilitation of substandard units through a new program within the Department of Community Affairs. 75% of those funds shall be allocated to the urban aid municipalities.
