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April 27, 2009

Possibility of school-age children (gasp!) threatens housing bill

By: Henry T. Chou, Esq.

Over a month ago, both Houses of the New Jersey Legislature passed a bill (A3772/S2577) that would allow certain approvals for age-restricted (55+) developments to be converted to approvals for non-age restricted developments, provided the builder meets certain conditions and agrees to provide a percentage of affordable housing as part of the development.

Upon the bill’s passage, a wave of municipalites and their lobby organization, the New Jersey State League of Municipalities, mobilized to prevent Governor Corzine from signing it. Of course, it was to be expected that any bill that might increase the number of, gasp, schoolchildren - mortal enemy #1 of municipalities - would generate so much passion and opposition to a measure aimed at stimulating the depressed development industry.

It appears that the municipalities’ efforts may be successful, as the bill continues to sit on Governor Corzine’s desk. Indications are that the governor may issue a conditional veto that would emasculate the bill and render it useless to developers.

April 13, 2009

Council on Affordable Housing Finally Grants Substantive Certification to Municipalities

By: Henry T. Chou, Esq.

Last week, the New Jersey Council on Affordable Housing (COAH) finally began granting substantive certification to municipalities for the "third round" compliance period concerning affordable housing obligations from 2008 to 2018. Substantive certification is COAH's determination that housing plans created by municipalities adequately address the need for affordable housing in those communities.

The third round compliance period was to have begun in 1999, but COAH delayed adopting third round regulations for many years, resulting in litigation by various groups to compel the agency to act. COAH's first attempt to adopt third round regulations in 2004 was struck down by the Appellate Division as unconstitutional, and COAH finally adopted revised third round regulations in 2008.

On April 8, 2009, Lawrence Township (Mercer Co.) and Pine Hill Borough (Camden Co.) were the first two municipalities to receive substantive certification under COAH's revised third round rules. By obtaining third round substantive certification, these two municipalities receive immunity from exclusionary zoning lawsuits until December 30, 2018.

April 06, 2009

Governor Corzine Signs Bill to Encourage Solar Panel Use

By: Henry T. Chou, Esq.

The State's goal of transitioning the public's reliance on fossil fuels to renewable energy sources came one step closer to reality when Governor Corzine signed Bill A1558/S2265 into law on March 31, 2009. The bill requires developers of 25 or more homes to offer new home buyers the option of installing solar panel systems. It also requires the Board of Public Utilities to adopt minimum standards of efficiency for solar panel systems installed by developers.

Supporters of the bill believe that it will increase the use of solar panels, which are easier and cheaper to install during the initial development process. Opponents of the bill, including some developers, point out that offering solar panels as an option presents practical difficulties because panels cannot be installed on all types of homes.

It is unclear whether the new solar panel option will catch on immediately in today's depressed real estate market, but the State is clearly planning for the future by giving new home buyers something to think about.