The New Jersey Council on Affordable Housing released the long-awaited response to the Appellate Division’s January 25, 2007 ruling striking down the prior ” Third Round” rules, which governed the production and administration of affordable housing. The Appellate Division was concerned with a number of issues, including the amount of affordable housing which needed to be produced, the very great municipal discretion permitted under the prior rules, and the ability of local governments to have up to half of the affordable housing units as “age-restricted”.
The new ” Third Round” rules make a number of significant changes, including:
* The ” Round” now goes from 1999 to 2018.
* The ” need” goes from 52,000 units statewide to 115,000 units.
* Regional Contribution costs go from $35,000 up to a range from $67,000 to $80,000, depending on COAH region.
A number of changes to municipal discretion:
a. No more than 25% of the units may be age-restricted
b. Payments to an affordable housing trust fund in lieu of construction are regulated, by region, and range from $145, 903 to $182, 859.
c. Tightening of the rules granting credits to municipalities for prior efforts.
In addition, the Council on Affordable Housing retains the ” growth share” concept, but now requires one affordable housing unit for each five market rate housing units built in a community ( rather than the one for nine in the prior round) and one affordable housing unit for each 16 jobs created in the community, rather than than one affordable unit per 25 job.
For further information, please contact Thomas J. Hall or Robert Kasuba.