Ruling Creates Blueprint for Constructing Affordable Housing in New Jersey
October 13, 2010 – (RealEstateRama) — Today the Appellate Division decided 22 separate challenges to the 2008 revised COAH third round rules. The decision once again invalidated key rule provisions, including the so-called “growth share methodology” for determining municipal housing obligations and standards for inclusionary development.
The decision held that those standards fail to provide sufficient incentives to make affordable housing construction a realistic opportunity. Two-and-half years ago, the same court invalidated the original 2004 COAH third round rules on the same grounds.
Declaring that COAH’s revised rules “suffer from many of the same deficiencies as the original third round rules,” the court has given the agency five months to adopt new rules based on a the methodology which COAH utilized in the late eighties and nineties to determine municipal housing obligations.
NJBA President Tom Critelli praised the decision stating, “The spirit and intent of the recent Appellate Division decision is a position we have advocated for years. Municipalities must provide a realistic plan for low and moderate income housing which includes compensatory benefits to reduce development costs so that affordable housing can be produced. The court never intended that the private sector should be the sole responsible party for building affordable housing in New Jersey. This decision solidifies that position.”
Tim Touhey, NJBA Chief Executive Officer, agreed and commended the Executive and Legislative Branches for their efforts to reform the current convoluted and disjointed system.
“Almost no affordable housing is being built—certainly not anywhere near the need by anyone’s calculation. Everyone is looking for alternatives. This decision validates the position of Governor Christie, Senator Lesniak, Assemblyman Green, and other legislators that COAH is broken and needs to be fixed.”
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About the New Jersey Builders Association (NJBA)
The New Jersey Builders Association is a housing industry trade association of 2,000 member firms including builders, developers, remodelers, subcontractors, suppliers, engineers, architects, consultants and other professionals dedicated to meeting the housing needs of all New Jersey residents and facilitating their realization of the American Dream. NJBA serves as a resource for its members through continuing education and advocacy. The NJBA and its members strive for a better, greener, more affordable New Jersey. Additional information is available at www.njba.org.
