COAH

[Guest]

Since builders remedy really depends on the suit and prior precedent, my guess is that this is a big question yet unanswered. I can see the courts not wanting to impose more building and cost on the developer. So doing may mean the original affordable units aren't built as the profit is smaller. So they'll probably grant an exception on the at market homes.

[publius]

Only the tough can survive NJ!!!!!!!!!!!!
Darwin would be pleased.

[The Times]

New housing fulfills dreams of ownership
Buyers in Trenton neighborhood also are landlords
Thursday, September 18, 2008
BY LISA RICH
TRENTON -- Herman Tucker is a single father.

The lifelong city resident rented a tiny, cramped apartment for years, spending the majority of his salary on rent and utilities.
The idea of savings was far-fetched.

Owning a home seemed even more out of reach.

"We were living in a small apartment and all I wanted was to own a safe home for my family," said Tucker yesterday at the newly completed development of 18 two-family homes on Calhoun and New Rose streets. "The homes I saw in Trenton, though, just weren't affordable or fit to live in. I wanted something better."

Up until a few months ago, Tucker planned to leave New Jersey in search of more affordable housing.

But through a unique opportunity, Tucker achieved something he never imagined: becoming a homeowner and a landlord.

The Leewood Real Estate Group has created an enclave of houses they've nicknamed "renaissance homes," a program that allows Tucker to own his three-story residence, occupying the top two floors, while acting as a landlord for tenants in a first-floor apartment.

For Tucker, that means he's now a homeowner, but also the landlord for his brother and sister-in-law who live in the downstairs apartment with their daughter.

How it works is relatively simple.
Anyone who buys a three-story home in the development is also buying an apartment downstairs. The owner can rent that space to another family or individual, and then apply the rental revenue to their monthly mortgage payments, or use it for other expenses such as a new car or vacation.

"This enables people to actually save money while owning a home," said Michael Fink, president and CEO of Leewood Real Estate Group, at an official ceremony yesterday.

"And what's especially great is how these homes are designed for a mixture of income levels," he said.

The average homeowner in the development earns from $30,000 to $50,000 a year and has a 30-year fixed-rate mortgage through the New Jersey Housing and Mortgage Finance Agency (HMFA).

Marge Della Vecchia, executive director of the HMFA, said there is still mortgage money available to prospective homeowners. So far, about one-third of the homes have been sold. Interested buyers can attend an open house Saturday to learn more.

When it comes to the design of the homes and development, Della Vecchia said it's the "textbook" vision of what any homeowner would want.

"How the homes are built, how they look, are so very important," she said. "People are going to barbecue here, they're going to have kids playing outside. They're going to feel proud of where they live."

Every home is designed the same, Fink said.

Plush carpets and tile flooring lead to spacious bedrooms and living areas. Most rooms have large closets and 9-foot-high ceilings. All of the homes are energy efficient and come with central heating and air.

Each residence has a moderate-sized back yard and private entrances.

"This is the kind of place that when people say, 'you live in Trenton?' the homeowners will want to say proudly, 'yeah, and you should come visit,'" said Mayor Douglas H. Palmer. "A house is not a home. But what's been created here is a real home environment."

It's no secret the nation's economy and shaky housing market have resulted in foreclosures across the country, Palmer said.

"But that's not going to happen to these homeowners," he said.

All homeowners in the development have received counseling on purchasing a home and overseeing tenants.

Their mortgages will not change over time, Della Vecchia said.

"It's great to me because I'm paying just about the same amount toward my mortgage every month as I was when I rented an apartment," Tucker said. "But now I have more space. I never thought this kind of opportunity would come my way, but I'm really glad it did."

http://www.nj.com/news/times/index.ssf?/base/news-5/1221710708303070.xml&coll=5&thispage=3

[Guest]

This is great. However, here is what concerns me. This comment, "Anyone who buys a three-story home in the development is also buying an apartment downstairs. The owner can rent that space to another family or individual, and then apply the rental revenue to their monthly mortgage payments, or use it for other expenses such as a new car or vacation."

I would much rather see a requirement that mandates rental income be used to pay the mortgage or mandate it go into a savings account that can only have a minimum withdrawal before a specified period of time say 5-10 years. That way there is a forced savings as opposed to a vacation or new car. When I walk through the park by the COAH homes I see nicer cars then my own. I'd rather see some mandate where the savings on COAH homes be applied to moving the residents out to market based homes and thereby allowing new tenants and people to buy in.

[News Transcript]

New housing quotas put towns under pressure
BY KATHY BARATTA Staff Writer

MANALAPAN — State lawmakers were scheduled to meet with residents this week for a discussion of new affordable housing requirements that have been established by the state Council on Affordable Housing (COAH).

State Assemblyman Declan O'Scanlon (R-Monmouth and Mercer) said he was going to be joined by Assemblywoman Caroline Casagrande and state Sen. Jennifer Beck (both R-Monmouth and Mercer) for a public meeting at town hall regarding the new municipal mandates from COAH and the New Jersey Department of Community Affairs.

The meeting in Manalapan was held on Sept. 23, which was after the News Transcript's deadline for this edition.

Members of the Manalapan Township Committee and other municipal officials were expected to attend. Presentations were scheduled to be made by a representative of the New Jersey League of Municipalities and its COAH expert Mike Cerra, according to O'Scanlon.

Tom Fitzsimmons, communications director for Beck, Casagrande and O'Scanlon, said people who are interested in learning more about the bill (A-500) that was responsible for the new COAH regulations can get information by going to the following Internet Web sites: http://www.njslom. org/COAH-challenge.html or http://www.njleg.state.nj.us/bills/ BillView.asp.

According to Fitzsimmons, Manalapan's third round COAH obligation will be 1,179 units. That means township officials must make provisions in local zoning for the construction of those units.

Affordable housing is housing that is sold or rented at below market rates to people who have an income which qualifies them for such housing under regional guidelines established by COAH.

The new law that was signed by Gov. Jon Corzine eliminates what had been known as regional contribution agreements

RCA). Under that program a town which had an obligation to build affordable housing was permitted to pay another town to accept that obligation and to rehabilitate substandard housing or to build affordable housing within its own borders.

In the past, towns such as Manalapan, Marlboro, Freehold Township, Howell and Colts Neck have used RCAs to transfer some of their affordable housing obligation to receiving communities.

Fitzsimmons said, "Interestingly, the hometowns of the three legislators are all affected differently by COAH. Red Bank is a more urban area which was a beneficiary of regional contribution agreements, money that was sent from other towns to purchase credit toward their obligations.

"Declan is from Little Silver, a small borough that is completely built out and landlocked and which used RCAs not to keep poor people from moving to town, but because they don't have the space to build too many more houses," he said.

According to Fitzsimmons, Little Silver's COAH obligation is 210 units. Casagrande is from Colts Neck, which has a third round COAH obligation of 284 units.

According to O'Scanlon, the new third round affordable housing obligations are onerous to the point of being destructive and counter-productive.

He said that in calculating a town's COAH obligation, preserved open space is being incorporated into the equation which directly contradicts the reason why municipal officials buy land — to preserve it from development.

"As a society, as a country, we need to provide affordable housing, but the recent COAH ruling is unworkable and will actually be a detriment to all municipalities," O'Scanlon said.

The assemblyman said Beck, Casagrande and he are holding local meetings in order to educate residents on what effects the law can have on the state as a whole as well as on each town.

"This blunt instrument from COAH is completely unworkable and will effectively destroy the character of many municipalities if it is allowed to play out as it is presently envisioned," O'Scanlon said.

http://newstranscript.gmnews.com/news/2008/0924/front_page/012.html

[Princeton Packet]

West Windsor eyes rezoning large parcels with COAH in mind
Tuesday, September 23, 2008 7:13 AM EDT
By Greg Forester, Staff Writer

WEST WINDSOR — The Planning Board will continue discussions on a plan to rezone several large parcels for additional subsidized housing on Wednesday, as the township maps out a strategy to deal with new state affordable housing regulations.

Facing rezoning are more than 24 acres across Route 571 from the McCaffrey’s Shopping Center, a 75-acre parcel known as the Thompson tract near the intersection of Old Trenton Road and Route 571, and property off Canal Pointe Boulevard occupied by Princeton Theological Seminary graduate student housing.

Each would be rezoned for what planning officials expect to be a 25-percent affordable housing component, with the remainder being market-rate.

The plan, which received a mixed response from the public at last week’s Planning Board session, comes as the township plans for a new affordable housing obligation of around 115 units that arose from new Council on Affordable Housing regulations adopted by the state in June.

The township’s rezoning plan, if adopted, would carry a total of 236 affordable housing units.
”The plan, as we presently have discussed it, suggests building 236 affordable units, for the purpose of providing a cushion in the event there are serious objections to our proposals,” said Planning Board Chairman Marvin Gardner.

Of the three properties, it appears the Thompson tract would be the most densely developed, with the 44 developable acres set to receive eight to 10 housing units each acre.

With the demolition of the seminary’s current housing, zoning for the new development could call for eight units per acre for a total of around 380 units, with a little over 75 affordable units.

The seminary has indicated to the township that it wants to replace the current, aging housing, according to Mr. Gardner.

...

http://www.packetonline.com/articles/2008/09/24/the_princeton_packet/news/doc48d822f262de6734217123.txt

[Toms River Times]

Town Looks To Flip Foreclosures into Affordable Housing Units
By Jo Ann La Russo


In an effort to meet its affordable housing requirements without constructing any new apartment buildings or units in town, Toms River officials recently unveiled a potential solution for residents who are feeling threatened by foreclosure.


At a press conference held last week at town hall, Mayor Thomas F. Kelaher announced a proposal to turn homes threatened by foreclosure into affordable housing units

Kelaher called the proposal "a creative approach to provide affordable housing while at the same time helping out our residents that are in jeopardy of losing their homes."

"Children can remain in their own schools, and the family would not have the stigma of foreclosure," said Kelaher. "I think it is something that could catch on throughout the state and the country."

Other town officials attending the press conference included Township Affordable Housing Attorney John F. Russo, Township Planner Jay Lynch, Council President Gregory McGuckin and Councilmen Peter Cassano and John Sevastakis, who also serves as the chairman for the state's Council On Affordable Housing (COAH).

Under the proposal, money from the township's affordable housing trust fund would be used to provide for a reduction in a homeowner's mortgage. The towns' affordable housing trust fund has about $2 million contributed by builders, Russo said.

In exchange for that funding, a deed restriction would be placed against the property, and when the home is eventually sold, the restriction would require it to be sold to another income-qualified family, at a price restricted to levels set by COAH.

"Everyone reads the headlines," said Kelaher. "People just can't pay their mortgages."

As a retired bank official, Cassano called the proposal "a creative workable solution."

"Banks don't want to own houses," said Cassano. "I saw this kind of situation all the time in banking."

The plan was originally presented during a council public forum in August, where homeowners' views were mixed on the idea, with some concerned about their home values if affordable housing units were suddenly in their neighborhoods.

Russo refuted such concerns.

"Over the past 22 years, I have been involved with affordable housing in Toms River, first as a builder back in the '80s and early '90s, then as an elected official and more recently as a municipal attorney practicing in the area of affordable housing compliance," he said. "I have had the opportunity to meet people that live in low and moderate income houses and apartments, and they need affordable housing."

The moderate income limits for a family of four to be eligible for affordable housing is approximately $70,000 per year, said Russo.

"They are certainly no different from us, our parents, our children, our employees and neighbors," he said. "So, while I appreciate some people's concerns, I also see the need. Remember, low and moderate income housing is not welfare housing." "The township has to permit and assist these developments, as well as other forms of providing affordable housing," Russo added, "so Toms River has no choice."

In order for the proposal to move forward, the COAH would have to grant a waiver on rules concerning the marketing of affordable housing units, according to Russo. The council would also have to introduce and adopt an ordinance to implement the program.

Under the Fair Housing Act and applied COAH regulations, Toms River continues to have the largest affordable housing obligations in the state for the past 22 years, said Russo.

In August, Kelaher and town officials broke ground for Toms River Crescent, a 100 percent affordable housing municipally sponsored residential development in Toms River, located just west of the intersection of Whitesville Road and Route 70. It is anticipated that Toms River Crescent will be ready for occupancy by December 2008.

Since January, Mayor Kelaher said that he has also had the opportunity to oversee the ground breaking for a senior affordable housing development along Oak Avenue.

The mayor also participated in a state affordable housing lottery by reading off the names of low-to-moderate families that were selected for a Lakewood Township townhouse project that Toms River helped to subsidize.

http://tomsrivertimes.micromediapubs.com/news/2008/1001/Front_page/002.html

[Guest]

[Jersey Dad]

No one ackowledges the devestating impact COAH will have on low and moderate income homeowners (typically families and seniors). Not only will their taxes go up to subsidize affordable housing, their home equity will be destroyed by the availability of "affordable" homes that will lure away potential buyers.

Statistically, about 20 percent of Cranbury residents are income qualified for affordable housing.

[Jersey Dad]

"Market-rate buy-downs" may be more viable in Cranbury if a maximum municipal set-aside percentage is established (Don't hold your breath).

[Cranbury Conservative]

The Save Jersey Blog reported recently that members of our State Assembly will be holding a series of town meetings which will allow the public to comment and give input regarding the impact COAH will have on their community.

"Members of the Assembly Republican Policy Committee will host a series of town meetings to gather public input on the impact of the new Council on Affordable Housing (COAH) rules and the potential negative impact the state’s new affordable housing scheme will have on towns throughout New Jersey.

The committee will discuss other approaches to the affordable housing issue and possible efforts to stop the new rules from taking effect. The currently scheduled meetings include:

Wednesday October 15, 7-9 p.m.
Mount Laurel Municipal Building
100 Mount Laurel Road, Mount Laurel


Wednesday, October 22, 7-9 p.m.
Wayne Municipal Building
475 Valley Road, Wayne"

Maybe we can have one here in Cranbury?

More information regarding this story can be found on the Save Jersey Blog at http://blog.savejersey.com/

My Blog:
http://cranburyconservative.blogspot.com/2008/10/town-meetings-to-discuss-coah-impact-on.html

[Guest]

[NJ Assembly Republicans]

September 18, 2008

COAH LAW DISCOURAGES ECONOMIC DEVELOPMENT
New Law Encourages Sprawl, Congestion and Higher Property Taxes

Senator Phil Haines, Assemblywoman Dawn Marie Addiego and Assemblyman Scott Rudder today questioned provisions of the recently enacted legislation to revise the State’s affordable housing laws that may impose a 2.5% tax on economic development project throughout the state; a tax that will ultimately be borne by middle class property tax payers.

“At a time when the State of New Jersey needs to support economic development projects designed to revitalize our older urban centers, the response from Trenton has been to pass a law imposing new taxes on new projects,” Assemblyman Rudder said. “Thanks to the COAH legislation, the State is adding millions to the price tag of projects throughout the state.”

“Whether it’s the New Jersey Motorsports Park in Millville, the expansion of Quakerbridge Mall in Lawrence or an electric generating plant in Atlantic County, desperately needed regional economic development projects need to be encouraged, not saddled with another tax,” said Assemblywoman Addiego. “Instead of talking about urban redevelopment and smart growth projects, maybe the politicians in Trenton should stop taxing them.”

“The COAH tax highlights the absurdity of assigning higher affordable housing obligations to our urban areas, while at the same time eliminating the tool of regional contribution agreements. These agreements could have helped to finance housing construction in areas where roads and other infrastructure already exist, and thereby stave off the destruction of our rural open spaces,” Senator Haines said.

http://www.njassemblyrepublicans.com/press_release.php?id=285

[NJ Assembly Republicans]

September 24, 2008

DANCER BILLS DESIGNED TO AMEND FLAWED COAH REGULATIONS FOR AGRICULTURE, NON-RESIDENTIAL CONSTRUCTION

In response to the recently enacted Coalition on Affordable Housing (COAH) law, which imposes a new fee on commercial development, Assemblyman Ronald Dancer has introduced two bills to protect agriculture and non-residential construction from what he calls an unfair “property tax surcharge.”

The recently enacted COAH legislation, A-500, which Assemblyman Dancer voted against, includes a new 2.5 percent fee on all commercial development, including agriculture development. The law also imposes the 2.5 percent fee on economic development projects that were approved and started prior to the law’s effective date of July 17, 2008, but had not yet received their certificate of occupancy (CO).

Dancer’s legislation, A-3188, would exempt farmland structures from the 2.5 percent fee while his other bill, A-3190, would grandfather in businesses that had facilities under construction and that had secured all necessary permits before A-500 became law.

“Historically, the State has encouraged farming activities because of their social, economic and environmental benefits,” explained Dancer, R-Burlington, Mercer, Monmouth and Ocean. “As such, agriculture structures have always been exempt from COAH assessments. However, since the new law does not explicitly exempt such structures from this property tax surcharge, DCA (Department of Community Affairs) has been instructed to collect the fee which is counter-productive. It does nothing but penalize farms for building structures to improve profitability, thus hurting the Garden State’s economy.”

Dancer’s legislation, A-3188, would explicitly exempt non-residential construction on land that is being used for a broad array of agricultural purposes from the fee.

Dancer has also introduced bill A-3190 to protect economic development projects that were approved and started prior to the law’s effective date. Currently, businesses cannot receive their CO’s unless they pay the new commercial development fee.

“The State, under the new COAH regulations, is unfairly hitting businesses with a 2.5 percent surcharge which is a cost businesses did not factor into their original price tags at the start of the projects,” stated Dancer. “As a result, some projects may end up costing hundreds of thousands of dollars more than the projected cost when applications were approved. It’s fundamentally unfair to slap businesses with another fee or tax after the fact. My bill will rectify that.”

http://www.njassemblyrepublicans.com/press_release.php?id=304

[Guest]

Good news, and I am glad to see some legislative effort to correct one of many flaws with COAH's rules. However, my understanding is that COAH has - with help from the farming industry - come to the realization that the 2.5% fee should not be applied to agricultural buildings.

[NJ Assembly Republicans]

September 9, 2008

REPUBLICAN POLICY COMMITTEE TO DISCUSS NEW AFFORDABLE HOUSING RULES, ALTERNATIVES

Members of the Assembly Republican Policy Committee held a news conference Tuesday to discuss their views on the impact of the new Council on Affordable Housing (COAH) rules and the negative impact the state’s new affordable housing scheme will have on towns throughout New Jersey.

“This issue is going to impact almost every municipality in this state – most with negative consequences,” said Assembly Republican Whip and Committee Chair Jon Bramnick, R- Union, Morris, Somerset and Essex. “We want to take a close look at this issue and see what we can do to prevent what could be a disaster for many communities.”

In June, Democrats in the Legislature approved an affordable housing “reform” law that eliminated Regional Contribution Agreements (RCA’s) and a new round of regulations was recently issued creating a new formula for determining affordable housing obligations in each municipality.

Committee members addressed a variety of issues with the new COAH regulations and the affordable housing law passed by the Legislature earlier this year:

• Assemblyman Scott Rumana talked about how COAH and A-500 will impact the quality of life and the property tax burden in New Jersey towns and suggested that that a process should be created whereby a municipality with little or no vacant land may submit to a process certifying that fact. This certification would then require COAH to adjust its fair share housing obligation accordingly.

• Assemblywoman Dawn Marie Addiego discussed the possibility of using foreclosed housing to meet some of the COAH housing requirements rather than requiring new construction – particularly in communities that are already built-out.

• Assemblywoman Denise Coyle talked about how mandating this many new units of housing will have a devastating impact on efforts to preserve open space and she discussed the projected impact of the new COAH requirements on local planning.

• Assemblywoman Charlotte Vandervalk said that the calculation of fair housing share does not make sense for many of the towns in her district and that the elimination of RCA’s is going to hurt both urban and suburban municipalities. She recommended that towns take this case to the Local Mandates Council since the new rules will impose a significant cost on towns.

• Assemblyman David Wolf said there are a number of problems with the affordable housing bill passed by the Legislature in June including the elimination of Regional Contribution Agreements, the failure to limit the use of “payment in lieu of affordable housing” dollars to only affordable housing purposes, and the creation of a $5.8 billion unfunded housing requirement that will leave state taxpayers on the hook for fees and increased property taxes.

• Assemblyman David Rible discussed recently discovered problems created by A-500 that require families who own homes destroyed by fire or other natural disasters to pay new fees to finance low-income housing construction. He said that steps need to be taken to fix this problem, and noted that it is an example of how the bill was rushed to approval without proper review.

The Assembly Republican Policy Committee was established to study critical public policy issues facing the state, including affordable housing, health care, government performance audits, drug abuse prevention and economic growth.

http://www.njassemblyrepublicans.com/press_release.php?id=242


Wednesday
October 15, 2008
7:00 PM - 9:00 PM Town Hall Republican Policy Committee Meeting on COAH/Affordable housing and the impact of the new COAH rules. The committee will discuss other approaches to the affordable housing issue and possible efforts to stop the new rules from hurting our communities.
This event will be held at: Mount Laurel Municipal Building -- 100 Mount Laurel Road, Mount Laurel NJ
For more information contact: Assemblyman Jon Bramnick at 908.232.2073

Wednesday
October 22, 2008
7:00 PM - 9:00 PM Town Hall Republican Policy Committee Meeting on COAH/Affordable housing and the impact of the new COAH rules. The committee will discuss other approaches to the affordable housing issue and possible efforts to stop the new rules from hurting our communities.
This event will be held at: Wayne Municipal Building -- 475 Valley Road, Wayne NJ
For more information contact: Assemblyman Jon Bramnick at 908.232.2073