Gov. Christie Announces “Realistic and Achievable Plan” for Affordable Housing

At a press conference on Thursday, May 13, Governor Chris Christie outlined what the administration called “a realistic and achievable plan for affordable housing.”  While the Governor’s Office has not yet released any legislative or regulatory proposal to implement the plan, the Governor released a bullet point outline of an “Affordable Housing Plan” along with  a statement emphasizing that the plan:

creates a standards-based, municipally controlled system with minimal involvement from the State.  New Jersey is facing dramatically different economic, demographic and social circumstances since the original Fair Housing Act was passed 25 years ago, which is why the current affordable housing system must be retired and replaced.  Under the new system, the Council on Affordable Housing (COAH) and State-imposed housing obligations will be abolished and fair, affirmative, locally directed obligations to build low and moderate-income housing will be created.   

As a result of the proposed changes, the rehabilitation of existing housing stock with be encouraged, a process largely neglected in the current system, and the affordable housing system will be moved away from state-controlled mandates and towards a locally-based system that focuses on future development.  The Governor’s proposal calls for a 10 percent affordable housing unit requirement in development projects greater than 10 units (i.e. 2 affordable units for a 20 unit development), and requires a payment to a municipal affordable housing trust fund for projects between 2 and 10 units.  The Governor recommends provisions to give priority housing trust funding for projects that provide special needs housing. 

“These new measures will help to fix a broken system by promoting sensible, predictable and achievable planning to implement change,” said Governor Christie.  “Affordable housing is a responsibility that must be naturally considered as part of normal development and local decision making.  With strictly limited State involvement in the process, we are finally allowing for flexibility and customization that acknowledges our state’s unique economic, community and housing needs.”

In February, Governor Christie created a five-member Housing Opportunity Task Force chaired by former Senator Marcia Karrow to examine the State’s existing approach to affordable housing and present recommendations to fulfill New Jersey’s constitutional obligations in a manner consistent with sound planning and economic growth.  In addition, the Legislature is actively considering reforms to affordable housing through legislation sponsored in the Senate by Senators Raymond Lesniak (D-20), Christopher “Kip” Bateman (R-16) and Jeff Van Drew (D-1) and in the Assembly by Assemblymen Vincent Prieto (D-32) and David Rible (R-11).

“I look forward to working with members of the legislature to adopt a reform plan that empowers municipalities with the flexibility to meet their affordable housing obligations based on the unique situations, circumstances and needs of their respective communities,” added Governor Christie.

Under Governor Christie’s plan, municipalities will have an increased role in determining their affordable housing needs. 

• Municipalities will be required to conduct an inventory of existing affordable housing to determine what housing must be rehabilitated.
• The municipality must then formulate a plan to accomplish the rehabilitation.

New affordable housing construction will be tied to future housing development. 

• Depending on the size of the residential development, affordable housing must be provided either on-site, off-site, or through a payment to the municipality’s affordable housing trust fund in lieu of actual construction.
• Municipalities would be able to use funds in their affordable housing trust funds to support housing rehabilitation within their own municipality or in other municipalities which have significant rehabilitation needs but limited resources.
• Special needs housing will be given priority for both development and funding. 

Also under the proposed plan, the current 2.5% commercial development fee would be repealed, which will help encourage economic growth. 

With regard to zoning, municipalities seeking to comply must demonstrate that undeveloped residentially-zoned land and redevelopment will accommodate the affordable housing requirement.  A municipality seeking protection from legal challenges and court-imposed remedies must develop and adopt a housing element as part of their municipal master plan.

 State involvement in the new process will be substantially reduced. 

• State affordable housing quotas will be abolished
• The Department of Community Affairs’ (DCA) will file municipally approved housing plans and make them publicly available.
• If challenged, the Department of Community Affairs will conduct a review of municipal plans, which is limited to a determination that the plan is factually accurate and consistent with the law.
• The DCA will continue to administer the State Affordable Housing Trust Fund.

Six months after the enactment of proposed legislation, the Fair Housing Act will be repealed and COAH will be abolished. Affordable housing plan certifications granted by COAH will remain in effect and are afforded the continued legal protections until the certifications expire. Municipalities with pending certification requests are permitted to pursue those certifications or may withdraw and develop new plans consistent with the new proposed law.

“Governor Christie and I recognize the affordable housing needs that many people in the state have,” said DCA Acting Commissioner Lori Grifa.  “Unfortunately, the Council on Affordable Housing has often times been more burden than benefit to the point that New Jersey as a whole has fallen far short of its affordable housing goals,” “The Governor’s new affordable housing plan is a fresh approach that gives more control and flexibility to local governments while limiting state involvement. Ultimately, this plan will result in more affordable housing units being built in communities across the state.”

The New Jersey League of Municipalities has also commented on the Administration’s proposal: http://www.njslom.org/letters/ml051310-affordable-housing.html

The Fair Share Housing Center has denounced the Administration’s proposal as more “red tape”: http://fairsharehousing.org/pdf/FSHC_press_release_-_5_13_2010_-_red_tape.pdf

BPU Explains Freeze On Solar Rebate Applications

The New Jersey Board of Public Utilities through the Office of Clean Energy has issued a statement on the OCE’s home page explaining the status of applications for solar rebates:

Renewable Energy Incentive Program (REIP) Funding Cycle 2, which opened on May 3, 2010, is now closed due to an unprecedented number of applications submitted.  The Funding Cycle budgets were established for each budget category to spread available rebate funding over the three four-month funding cycle periods. In just three days, an entire cycle worth of applications were submitted for residential and nonresidential solar projects through the Renewable Energy Incentive Program.  On the first business day of Funding Cycle 2, the program received over 1110 applications.  The 2010 New Jersey Clean Energy Budget, as approved by the Board of Public Utilities on December 16, 2009, provided budgets to three funding cycles in 2010.

New Jersey has one of the fastest growing market for solar photovoltaics in the United States and is one of the largest states in terms of installations and installed capacity, second only to California. Established in 2001, with only 6 solar installations in the state, New Jersey has established a model program and integrated approach to solar development that includes: A strong Renewable Portfolio Standard (RPS) with a solar electric set-aside that has helped create sustainable demand and investor confidence in the market; excellent interconnection and net metering standards that have made it easier for systems to connect to the distribution system and be compensated for their contribution, and an SREC financing model that provides energy credits and additional long term financing for those who invest in solar.  Today more than 5200 solar projects exist throughout the state.

The program’s budget is being reviewed to support rebate applications received prior to the posting of this notice.  Applications are being reviewed for completeness in the order in which they were received.  Customers submitting applications after the posting of this notice (May 11, 2010), and incomplete or illegible applications will be returned to the applicant without exception and funds will not be reserved. 

The Office of Clean Energy anticipates having a recommendation for consideration of additional funding or potential program changes at the June 7th board meeting.  Please check this website on a weekly basis for updates and additional information.  Funding cycle three is planned to open on September 1, 2010.  

Please cease from submitting applications for rebated residential and nonresidential solar systems under the REIP until further notice. New Jersey’s Clean Energy Program will continue to accept and approve rebate applications for wind and biopower projects and SREC Registration.

For more information, visit the Office of Clean Energy home page at http://www.njcleanenergy.com/

NJBPU Halts Solar Rebate Program Until September

Updated 5-12-10:  NJ.com has provided more information about the phasing of rebates for solar installation.  See http://www.nj.com/news/index.ssf/2010/05/nj_halts_accepting_new_solar_p.html

The New Jersey Board of Public Utilities has confirmed that it stopped accepting new applications for its solar rebate program and will not take new applications until September 1 as funding for the rebate program is currently depleted.

According to a Star Ledger report:

On April 1, the BPR stopped taking applications because the money allotted through April 30 had been used up.

When applications began being accepted again on May 3, some people were camping out to turn theirs in early. That day, more than 1,100 applications were submitted. Since then, another 125 have rolled in.

So the BPU decided today to cut off new requests again until Sept. 1.

NJDEP Sets Meeting on Remedial Priority Scoring System

The New Jersey Department of Environmental Protection has announced a public hearing on the Remediation Priority Scoring system.   The details, as contained in a release from the Department, are below:

Development of the Remedial Priority Scoring (RPS) system was mandated pursuant to N.J.S.A.58:10-23.16 as amended in section 39 of P.L.2009, c.60 (Site Remediation Reform Act). A system has been developed to measure each site’s relative risk to human and ecological health.

A public meeting is scheduled for May 24, 2010 from 9:00 am to 11:30 at the Public Hearing Room in the Department of Environmental Protection Headquarters at 401 East State Street, Trenton to explain the system and demonstrate the technologies and rationale behind the development of the system. Department staff will describe the system in detail and address questions and comments.

Please visit the following web address for more information:

 

http://www.nj.gov/dep/srp/srra/rps

Governor Christie Signs “Time of Application” Legislation

On Wednesday, May 5, Governor Chris Christie signed S-82 into law.  The new law amends the Municipal Land Use Law to abolish, except in limited circumstances, the “Time of Decision” rule adopted by the courts which had previously allowed municipalities to change zoning ordinances, including eliminating permitted uses, at any time prior to a final decision of a land use board.  The new law creates a “Time of Application” standard, under which an applicant may proceed before a land use board based upon the zoning ordinances in effect at the time of filing an application without fear that a subsequent ordinance adoption will scuttle their application.  Many municipal officials opposed the signing of this bill; however, it enjoyed widespread bipartisan support in both houses of the Legislature and the Governor had previously committed to signing some form of change to the “Time of Decision” rule during his campaign.

According to a statement from the Governor’s Office:

Governor Chris Christie today signed legislation to simplify and make more predictable regulations governing land-use development applications at the municipal level, encouraging development and lowering costs for New Jersey businesses and job creators.

S-82, commonly referred to as “time of application” or “time of decision” legislation, provides that a land-use development application will be governed by the municipal development regulations in effect at the time of the application.  Exceptions are provided for those rules related to health and public safety. 

The legislation does not guarantee approval of a land-use application, but instead allows for the application process to move forward without the unnecessary hurdle of constantly changing requirements while the application is pending.

“New Jersey’s businesses and entrepreneurs – the job creators of our state – invest considerable amounts of financial and human resources in navigating a vast landscape of rules and regulations at the state and local level,” said Governor Christie.  “Prior to the signing of this legislation, the system allowed for those rules to be changed in the middle of the process, even after an application has been submitted.  This legislation makes common sense changes to improve the application process and move New Jersey in the right direction of providing a friendlier environment for job creation, while keeping safeguards for public health and safety in place.”

Currently, regulations do not “lock-in” until preliminary approval is granted for an application, allowing municipalities to change the requirement of an application after its initial submission, resulting in a business that is investing in New Jersey having to start the costly, time-intensive application process over, or abandoning the project altogether.