Reforms procedures concerning provision of affordable housing; repeals "Statewide Non-Residential Development Fee Act."
Impact
The bill outlines that a municipality may qualify as 'inclusionary' if it maintains at least 7.5% of its housing stock as price-restricted units or meets certain criteria regarding the diversity of types of housing available. By establishing a measured, simple standard for reporting, the intent is to enhance compliance and foster development that meets housing needs for low and moderate-income residents. Furthermore, municipalities will have various options to fulfill their affordable housing obligations, including off-site developments and the option to pay into an affordable housing trust fund.
Summary
Senate Bill S961 seeks to reform the state's affordable housing laws by simplifying the mechanisms for compliance with the Fair Housing Act (FHA). The bill dissolves the now-defunct Council on Affordable Housing (COAH) and transfers its responsibilities to the Department of Community Affairs (DCA). A significant change proposed in S961 is the stipulation that municipalities must ensure that at least 10% of new residential development is allocated to affordable housing. This is intended to streamline the process and encourage more effective production of affordable units compared to the previous complex requirements. The bill stipulates specific criteria for municipalities to achieve 'inclusionary' status based on their housing stock.
Contention
Notably, the repeal of the Statewide Non-Residential Development Fee Act could create contention among municipalities whose revenue streams depended on such fees for funding local projects. While the bill's advocates argue that it fosters greater access to affordable housing, critics raise concerns about how these changes may affect local control in housing matters and the financial implications for municipalities that struggled to meet previous COAH requirements. The potential removal of some regulatory controls might lead to disagreements over local zoning practices and the prioritization of community-specific needs.