New Jersey Senate Proposes Delay of Affordable Housing Development Fee Until 2010
By: Henry T. Chou, Esq.
On March 16, 2009, the New Jersey Senate approved an 18-month temporary moratorium on payments of affordable housing development fees made by commercial and industrial developers to municipalities. The fee - 2.5% of the equalized assessed value of non-residential development projects - was authorized as part of the "Roberts Bill" adopted in the summer of 2008. However, the dramtic economic downturn in late 2008 prompted the Governor to propose a temporary moratorium against such fees until the end of 2009.
Because it is now apparent that the economic downturn will extend well into 2010, the Senate approved a bill that would extend the moratorium through June 2010. Since no affordable housing funds will be derived from non-residential development during the term of the moratorium, the measure also relieves municipalities from having to meet any affordable housing obligation generated as a result of non-residential development during the moratorium. The Assembly companion bill remains in Committee. It is anticipated that Governor Corzine will sign the measure into law promptly once the Assembly approves the companion bill.
While politicians and the New Jersey business community view the moratorium as a common-sense measure to assist the frail economy, many in the affordable housing community are dismayed that municipalities have been given yet another opportunity to delay compliance with their constitutional obligation to provide housing opportunities to low and moderate income families.