Requires developers of residential housing to provide low, moderate, and middle income housing or pay fee.
To ensure compliance, the bill allows municipalities to withhold occupancy certificates for market-rate units if developers do not meet the housing requirements upon reaching designated milestones of market-rate unit completion. Additionally, it enables developers to create these reserved units either on-site or off-site within the same municipality, which could provide flexibility and incentivize compliance. Long-term affordability is emphasized, as any reserved units must remain affordable for a minimum of 98 years, in line with current standards.
Senate Bill S1081 requires developers of residential housing projects consisting of 30 or more units to allocate a minimum percentage of those units for very low, low, moderate, and middle income housing. Specifically, it mandates that at least 25% of the units be reserved for these income categories, with a breakdown of five percent for very low income, ten percent for low income, five percent for moderate income, and five percent for middle income housing. The bill stipulates that these provisions apply to any projects approved by planning boards or zoning boards of adjustment that meet certain criteria, including unit density and project approvals.
Notably, there may be contention surrounding the bill, particularly regarding the extent of local authority in planning housing developments. While proponents argue it promotes vital affordable housing, critics could assert that the bill indirectly pressures municipalities to accommodate these requirements without adequate support or resources. Furthermore, the provision allowing developers to pay a fee instead of constructing units may face scrutiny, as it could be perceived as a loophole that undermines the intent of increasing affordable housing stocks.
The legislation is seen as a significant step towards tackling New Jersey’s housing affordability crisis. It attempts to strike a balance between the economic feasibility of new developments for builders and the pressing need for affordable housing across various income levels. However, concerns regarding the effectiveness of monitoring compliance and the allocation of development fees remain pertinent topics for ongoing legislative discussions.