Appellate Division Invalidates COAH’s Third Round Rules (Growth Share)

October 8th, 2010 | Posted by: Christopher DeGrezia 0| comments:

COAHToday, the Appellate Division issued a decision invalidating the Council of Affordable Housing’s growth share methodology, commonly referred to as the third round rules.   The Court provided the following conclusion:

In summary, we invalidate the parts of the revised third round rules that use a growth share methodology for determining the prospective need for affordable housing. We also conclude 71 A-5382-07T3 that the adoption of valid third round rules should not be further delayed by allowing COAH to adopt another methodology for determining prospective need that relies upon a growth share approach. Accordingly, we remand to COAH to adopt new third round rules that use a methodology for determining prospective need similar to the methodologies used in the first and second rounds. This determination should be made on the basis of the most up-to-date available data. The remand shall be completed within five months.

We also invalidate N.J.A.C. 5:97-3.2(a)(4)(iv), which authorizes a municipality to obtain substantive certification of a compliance plan that proposes to construct municipally-funded affordable housing without any specifics regarding the location of the site or source of funding; those parts of the third round rules that fail to provide sufficient incentives for the construction of inclusionary developments; N.J.A.C. 5:97-3.5, which governs rental bonuses for prior round obligations; and N.J.A.C. 5:97-3.18, which authorizes compliance bonuses for affordable housing units approved during the period from December 20, 2004 to June 2, 2008. Consequently, COAH must either eliminate or modify those parts of the third round rules in conformity with this opinion.

Non-Residential Development Fee of 2.5% is Reinstated

September 20th, 2010 | Posted by: Christopher DeGrezia 1| comments:

Affordable HousingAs of July 1, 2010, the 2.5% fee on non-residential development is once again in effect.  This 2.5 % fee was originally applied in 2008 with the enactment of the Statewide Non-Residential Development Fee Act (N.J.S.A. 40:55D-8.1-8.7) and was later suspended  as part of the New Jersey Stimulus Act of 2009.   With the introduction of Senate Bill S-1, it was anticipated that the 2.5% commercial fee would be eliminated or removed from the affordable housing formula.  S-1 passed the Senate in June, 2010 but has been held up by the House for further discussion.  As we work through the affordable housing mess, developers and municipalities should be cognizant that the 2.5% non-residential development fee is currently in effect.  This could and should change soon but as of July 1, 2010, the fee is no longer suspended.  Stay tuned as these issues will be further reviewed and discussed this fall.

Pending Legislation Abolishes Council on Affordable Housing and Nonresidential Development fees

May 7th, 2010 | Posted by: Christopher DeGrezia 0| comments:

COAHIf adopted, a bill before the New Jersey Senate (S-1) will abolish COAH and reform the Fair Housing Act.  The bill stands at second reading and can be voted upon at the next voting session in May 2010.  If it is not amended, the bill will change the entire landscape of how affordable housing requirements are calculated and applied.  With regard to nonresidential development, it will essentially eliminate affordable housing requirements.  Here is the story:      » Read the rest of this entry «

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