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How Will New Legislation Impact the Administration of Affordable Housing?

During the West Windsor Council Meeting on 2/12/2024 there was a discussion regarding the Affordable Housing legislation that is quickly moving through the NJ Legislature. Earlier in the day, the Assembly passed a bill (A4) by a wide margin. The bill, when approved by the Senate and signed into law by the Governor, will set into place a sweeping measure to administer affordable housing obligations across the entire state. There is still time to revise the bill, as the Senate can make additional revisions and send it back to the House.


A copy of Assembly Bill A4 can be found at https://www.njleg.state.nj.us/bill-search/2024/A4


Our role as council members is to advocate for legislation that minimizes our risks and provides for an equitable and achievable process to define and meet our affordable housing requirements. 


The following is a copy of my prepared remarks. The entire discussion can be view on the West Windsor Township YouTube page https://www.youtube.com/@westwindsortownship3046


 

It’s important for us to set the context about this issue.   Affordable housing is a constitutional requirement as ruled by the NJ Supreme Court in a case, known as the Mount Laurel doctrine, nearly 50 years ago in 1975.


This case set the precedent that municipalities have an obligation to provide their fair share of affordable housing for low- and moderate-income residents, a principle that has since been upheld and further developed through subsequent court decisions and legislative actions.  This landmark ruling aimed to combat exclusionary zoning practices and promote socio-economic diversity and inclusion in New Jersey communities.


The Council on Affordable Housing, also known as COAH was established in 1985, and was tasked with overseeing the development and implementation of affordable housing policies in New Jersey. Its primary responsibilities included establishing affordable housing quotas for municipalities, monitoring compliance with those quotas, and allocating funding for affordable housing initiatives.


However, over the years, COAH faced numerous challenges and controversies that impacted its effectiveness. One of the most significant issues was the prolonged legal battles and legislative gridlock surrounding the methodology used to determine each municipality's fair share of affordable housing obligations. This led to delays in the implementation of affordable housing policies and created uncertainty for municipalities.


To make matters worse, past gubernatorial administrations failed to appoint members to fill vacancies in COAH, leaving the council unable to carry out its duties.  This lack of leadership has further exacerbated the challenges of implementing coherent affordable housing policies statewide.


Without a functioning COAH, affordable housing disputes moved into the courts, where municipalities were assaulted by numerous lawsuits, resulting in lengthy and costly litigation.  In 2018, a Superior Court judge ruled that West Windsor had not met its affordable housing obligations and needed to zone for the construction of 1,500 affordable units by 2025. This figure represented a 15 year back log, as well as a 10 year forward view.  The ruling came after years of litigation and negotiations.  West Windsor has grappled with the challenge of meeting our affordable housing obligations while balancing concerns such as zoning regulations, community character, and infrastructure capacity.


In 2025, just one year from now, all municipalities will be required to submit a plan to provide affordable housing for the next 10 years.   Our leaders in the NJ Legislature have introduced legislation to prevent a repeat of what happened in the last round whereas affordable housing requirements were decided by a costly judicial process. 


The new legislation introduces a detailed administrative process to determine fair share housing obligations.  It provides protections to prevent costly “builders remedy” lawsuits  [“Exclusionary zoning litigation”] and moves the decision-making process away from the courts and under the jurisdiction of the Department of Community Affairs. 


Some aspects of the new legislation of note is that the next round is capped at 1,000 units, with numerous opportunities to reduce the total obligation based on specific use cases, such as special needs housing.  Age restricted housing can account for as much as 30% of the units.


The reality of the situation is that legislation will be passed this year to address the administration of affordable housing requirements.  It will not be perfect, but having something in place will be a vast improvement compared to what happened in the last round, where West Windsor incurred significant costs due to litigation.  Our role as council members is to advocate for legislation that minimizes our risks and provides for a clear, fair, and achievable process to define and meet our affordable housing requirements. 


Over the past several weeks, leaders in our legislature have been collaborating with leaders from the NJ League of Municipalities to adopt changes to the legislation.  Numerous changes have been agreed to that improve the legislation, adding additional protections to municipalities.  That’s an excellent sign, as it demonstrates that our legislators are listening and taking action based on our concerns. 


The legislation process continues to be very fluid.  Earlier today [2/12/24], an amended version of the bill was approved by the Assembly [in a vote of 51-28].  The bill included no less than 23 items addressing concerns presented by the League of Municipalities.


We must continue to advocate for change.  Areas of the legislation should be considered for further improvement are as follows:

  1. An update to the obligation calculations so that it accounts for the financial burdens that would result from additional development, including, but not limited to the management of infrastructure, emergency services, environmental impacts such as storm water management, and educational services;

  2. Funding opportunities to mitigate financial impacts as noted;

  3. The allowance of additional time to determine the obligation as well as the submission of the full plan.


Thank you.

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