By: Michael J. Lipari, Esq.
Today, Acting Governor Kim Guadagno signed a bill into law that extends a prior moratorium on the 2.5 percent non-residential development fee. This law (Legislative Bill S-2974) extends the moratorium for an additional two years, which should provide relief to commercial real estate developers.
By: Henry T. Chou, Esq.
On June 16, 2011, the Law Division of the Superior Court issued a decision in Estaugh Commons v. Haddonfield Borough Zoning Board of Adjustment that makes it harder for municipal land use boards to deny use variance applications by developers seeking to build affordable housing. At issue in the lawsuit was whether an inclusionary development proposed by a private developer should have been considered an “inherently beneficial use” by the Zoning Board of Adjustment when evaluating the developer’s use variance application.
By: Thomas F. Carroll, III, Esq.
On June 29, 2011, Governor Chris Christie issued a “Reorganization Plan” designed to abolish the Council on Affordable Housing (“COAH”). Unless both houses of the New Jersey Legislature pass a concurrent resolution within 60 days disapproving of the Reorganization Plan (“RP”), the RP will become effective and COAH will be formally abolished.
Continue reading "Governor Christie Issues “Reorganization Plan” to Abolish COAH" »
By: Henry T. Chou, Esq.
The New Jersey Supreme Court has granted the petitions for certification filed by the New Jersey State League of Muncipalities (NJSLOM) and thirteen municipalities seeking review of the Appellate Division's invalidation of portions of COAH's "third round" regulations concerning municipal affordable housing obligations.
Continue reading "New Jersey Supreme Court to Hear Appeal of COAH's Third Round Rules" »
By: Henry T. Chou, Esq.
In an opinion issued on February 24, 2011, the Appellate Division ruled that COAH's Regional Affordable Housing Development Program Guidelines ("Guidelines") are actually regulations that should have been adopted under the Administrative Procedure Act ("APA").
Continue reading "Court Strikes Down COAH's Imposition of Regulations as "Guidelines"" »
By: Henry T. Chou, Esq.
On January 24, 2011, Governor Christie conditionally vetoed an amended version of S-1, which had been passed by both the Senate and the Assembly earlier in the month. In rejecting the bill, Governor Christie said it had changed too much from a original S-1 that was passed by the Senate in June 2010, and called for a return to the original bill. It remains to be seen whether the Legislature will act on the Governor's conditional veto.
Published in December 2010 Edition of New Jersey Builders Association Cutting Edge Newsletter
By: Thomas F. Carroll, III, Esq.
On October 8, 2010, the Appellate Division of the New Jersey Superior Court released its opinion invalidating key provisions of the 2008 “third round” regulations issued by the New Jersey Council on Affordable Housing (COAH). Meanwhile, the Legislature is actively moving a bill that would abolish COAH and replace it with a new Mount Laurel compliance regime. The court’s decision and the legislation have important consequences for proposed developments throughout the state.
Princeton, NJ -- In a case brought by Hill Wallack LLP on behalf of the New Jersey Builders Association, the Appellate Division of the New Jersey Superior Court today struck down key provisions of the affordable housing regulations promulgated by the New Jersey Council on Affordable Housing (COAH). The Appellate Division ruled that the regulations would impede construction of affordable housing by private builders in New Jersey. The court also held that the regulations improperly permitted municipalities to reduce or avoid their constitutional obligations to provide for affordable housing.
Published in September 2010 Issue of Builder/Architect Magazine, Greater New Jersey Edition
By: Thomas F. Carroll, III, Esq.
The Council on Affordable Housing (COAH), facing proposed legislation designed to abolish it, continues to process municipal petitions seeking substantive certification (approval) of the fair share plans that have been submitted pursuant to the “third round” COAH regulations that are under appeal. At its meeting of September 8, 2010, COAH rendered some decisions of significant interest to builders and others who seek enforcement of the obligation of New Jersey municipalities, imposed by the Mt. Laurel decisions, to eliminate exclusionary zoning.
By: Henry T. Chou, Esq.
On June 10, 2010, the Senate passed S1, a bill that proposes to eliminate the New Jersey Council on Affordable Housing ("COAH") and implement a new, statewide affordable housing scheme. The bill, sponsored by Senator Raymond Lesniak, was previously approved by the Senate Economic Growth Committee with amendments on June 3, 2010 without any public testimony, much to the displeasure of numerous public interest groups opposed to the legislation. The bill now heads to the Assembly, where it will likely be posted for a full vote by the end of June.
Continue reading "Senate Passes Bill to Eliminate COAH and Revamp Affordable Housing Rules" »
By: Michael J. Lipari, Esq.
Governor Christie has unveiled his new housing reform proposal, which seeks to drastically change affordable housing policies that have been in place for decades. As promised, the Governor proposes to eliminate the Council on Affordable Housing (“COAH”) and limit State involvement in the affordable housing process. The proposal is generally consistent with the report issued in March by the Governor’s Affordable Housing Task Force.
Continue reading "Governor Christie Reveals Plan for Affordable Housing and COAH" »
By: Michael J. Lipari, Esq.
The task force created by Governor Christie to examine and provide the Governor with recommendations on how to handle COAH and the future of affordable housing in New Jersey, has issued its findings and recommendations, which was published by the Governor’s office on March 23, 2010.
By Henry T. Chou, Esq.
The New Jersey NAACP has filed an ethics complaint against Senators Ray Lesniak (D-Union) and Christopher "Kip" Bateman (R-Somerset), alleging that the Senators' joint sponsorship of a new affordable housing bill that would, among other things, eliminate the New Jersey Council on Affordable Housing poses a conflict of interest because the Senators' respective firms would stand to prosper financially from the proposed legislation.
By: Thomas F. Carroll, III, Esq.
On February 9, 2010, Governor Chris Christie issued an Executive Order staying proceedings of the Council on Affordable Housing (“COAH”) for 90 days, and creating a task force charged with devising a way to replace the COAH process. On February 19, 2010, the Appellate Division issued an order enjoining the halting of COAH proceedings, but allowing that task force to commence its work.
By: Michael J. Lipari, Esq.
Last week Governor Christie issued Executive Order 12 to stay COAH for 90 days, from “taking any further action to process applications for substantive certification or to take any other actions to implement [COAH’s] Third Round regulations.” The Executive Order also created the “Housing Opportunity Task Force” to provide the Governor with recommendations on how to handle COAH and the future of affordable housing in New Jersey.
By : Henry T. Chou, Esq.
On February 9, 2010, Governor Chis Christie signed an executive order creating a five-member panel called the "Housing Opportunity Task Force" to undertake a review of the Fair Housing Act, the State Planning Act and the prior and current regulations of the Council on Affordable Housing (COAH). The executive order directs the Housing Opportunity Task Force to produce within 90 days a report containing findings and recommendations concerning the future of affordable housing in New Jersey.
Continue reading "Governor Christie Orders 90-Day Moratorium on COAH Proceedings" »
By Henry T. Chou, Esq.
Last week, State Senators Ray Lesniak (D-Union) and Kip Bateman (R-Somerset) introduced a bipartisan bill that proposes to abolish the New Jersey Council on Affordable Housing (COAH), and place all State authority over affordable housing issues within the jurisdiction of the State Planning Commission.
Continue reading "Legislators Introduce Bill to Abolish COAH" »
By: Henry T. Chou, Esq.
Lawmakers have reacted swifty to the Appellate Division's recent decision that affordable housing must be accorded "inherently beneficial" status when proposed in use variance applications, even if a town has already otherwise met all affordable housing obligations assigned by the Council on Affordable Housing (COAH).
Continue reading "Legislators to Introduce Bill Overriding Court Decision on Affordable Housing" »
By: Henry T. Chou, Esq.
On August 24, 2009, the Appellate Division issued a decision in Homes of Hope v. Eastampton Land Use Planning Board that makes it harder for municipal land use boards to deny use variance applications by developers seeking to build affordable housing. At issue in the lawsuit was whether a 100% affordable housing project proposed by a non-profit developer should have been considered an “inherently beneficial use” by the Eastampton Land Use Board when evaluating the developer’s use variance application.
By: Henry T. Chou, Esq.
On August 12, 2009, the New Jersey Council on Affordable Housing (COAH) granted a six-month extension for fitfy-one towns in the Highlands region to file their affordable housing plans with COAH. The resolution extends the previous deadline of December 8, 2009 to June 8, 2010, which gives Highlands towns additional time to formulate their affordable housing plans based upon "build-out" analyses prepared by the New Jersey Highlands Council.
Continue reading "Highlands Towns Get Six Month Extension to File COAH Plans" »
By: Henry T. Chou, Esq.
On July 27, 2009, Governor Corzine signed into law an economic stimulus bill (A-4048/S-2299) aimed at reinvigorating the real estate development industry through innovative tax incentives and fee moratoriums, among other measures.
By: Henry T. Chou, Esq.
DCA Commissioner and COAH Chairman Joseph Doria resigned on July 23, 2009 after the FBI raided his home in Bayonne and his office in Trenton in connection with an ongoing corruption probe.
Continue reading "COAH Chairman Joseph Doria Resigns Amidst Corruption Probe" »
By: Henry T. Chou, Esq.
On July 16, 2009, the Highlands Water Protection and Planning Council (Highlands Council) released its "buildout analysis" for 17 municipalities located in the Highlands "Planning Area." While the Highlands Act had designated the Planning Area as a "growth" region, the actual buildout analysis paints a far different picture for the 17 municipalities in Warren and Hunterdon County, including Allamuchy, Pohatcong, Bloomsbury, Califon, Glen Gardner, Milford, Clinton and Tewksbury Township.
Continue reading "Highlands Council Releases Buildout Analysis for 17 Towns in Planning Area" »
By: Henry T. Chou, Esq.
On July 2, 2009, Governor Corzine signed into law a bill (S2577) that allows builders to apply to local planning boards to convert age-restricted (55+) residential developments to non-age restricted developments that would be open to persons of all ages.
Continue reading "Governor Corzine Signs Bill to Allow Conversion of 55+ Housing" »
By: Henry T. Chou, Esq.
In response to the State's recession woes, the Legislature has passed an omnibus economic stimulus bill (A-4048/S-2299) aimed at reinvigorating the real estate development industry through innovative tax incentives and fee moratoriums, among other measures.
By: Henry T. Chou, Esq.
Apparently bowing to the pressure of mayors throughout the State, Governor Corzine has conditionally vetoed legislation that would have allowed builders to convert age-restricted (55+) residential developments to non-age restricted developments that would be open to persons of all ages.
Continue reading "Governor Corzine Conditionally Vetoes 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.
Continue reading "Possibility of school-age children (gasp!) threatens housing bill" »
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.
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.
By: Henry T. Chou, Esq.
On March 16, 2009, the New Jersey Assembly and Senate adopted a bill (A3772/S2577) that would allow certain approvals for age-restricted (55+) developments to be converted to approvals for non-age restricted developments. The bill would allow developers who have obtained approvals for age-restricted projects to apply to planning boards to remove the age-restriction, provided that the developer is not holding any deposits for the sale of age-restricted homes or has not already conveyed any such units.
Published in January 15, 2009 Special COAH Edition of New Jersey Builders Association Dimensions Newsletter
By Stephen Eisdorfer, Esq.
In a flurry of activity over the past several weeks, COAH has established timetables and procedures for municipalities to file housing plans. These new timetables and procedures create both potential opportunities and potential frustrations for builders.
Continue reading "Hurry Up and Wait: Seeking Rezonings Under COAH's New Rules" »
By: Henry T. Chou, Esq.
By the end of the day on December 31, 2008, 234 out of 302 eligible municipalities had filed housing elements and fair share plans ("housing plans") with the New Jersey Council on Affordable Housing ("COAH"). By doing so, those municipalities maintained their immunity from builder's remedy lawsuits. With the exception of municipalities in the Highlands that were previously under COAH's jurisdiction, municipalities that have not filed housing plans with COAH are now vulnerable to builder's remedy lawsuits. In mid-December 2008, the New Jersey State League of Municipalities and several legislators requested COAH and Governor Corzine to grant an extension of the December 31 deadline, but the requests were denied.
By: Henry T. Chou, Esq.
In response to numerous public inquiries, the New Jersey Council on Affordable Housing ("COAH") posted a letter on its website on December 17, 2008, clarifying the scope of the scarce resource restraints it previously imposed upon on municipalities in the Highlands Region.
Continue reading "COAH Clarifies Scope of Highlands Scarce Resource Restraints" »
By Henry T. Chou, Esq.
Wtih the closing of Fort Monmouth approaching in just over two years, the Fort Monmouth Economic Revitalization Planning Authority (FMERPA) moved promptly to adopt its "Fort Monmouth Revitalization Plan" on September 3, 2008. The Plan, which provides proposals for the reuse of the base, calls for various types of development, including market-rate and affordable housing.
By: Henry T. Chou, Esq.
On November 12, 2008, the New Jersey Council on Affordable Housing (COAH) issued a Resolution imposing scarce resource restraints, indefinitely barring development in Highlands towns that are within COAH’s jurisdiction, with the exception of single-family or duplex homes on existing lots, residential housing that includes a 20 percent set-aside for affordable housing, or projects that are exempt or have obtained a waiver under the Highlands Act. COAH’s stated purpose for the moratorium was to “preserve scarce land, water and sewer resources” that might be needed for the future development of affordable housing in the Highlands.
By Henry T. Chou, Esq.
On September 22, 2008, COAH adopted a set of rule amendments affecting affordable housing development. The rule amendments concerning the so-called "third round" compliance period (2004-2018) represent a significant departure from COAH's previous "third round" policies, which allowed municipalities to "pass through" affordable housing obligations directly to builders without providing any real offsetting benefits such as increased densities. The new rule amendments require presumptive minimum densities and/or density bonuses for inclusionary developments (developments containing both market rate housing and lower income housing), with the required densities varying depending upon the applicable State Development and Redevelopment Plan (“State Plan”) planning area designation and other criteria.
Continue reading "COAH Adopts New Rules Changing Affordable Housing Standards and Obligations" »
By order dated October 6, 2008, the Appellate Division has denied a motion by the League of Municipalities to postpone the December 31, 2008 deadline for some 280 towns to file new housing plans with the New Jersey Council on Affordable Housing (COAH). Towns that are subject to this deadline and who fail to file with COAH by that date lose their immunity from exclusionary zoning litigation until they do file. Because these towns have an urgent need to prepare and adopt new housing plans over the next 10 weeks, this is an opportune time for property owners and builders to propose projects that include both residential and mixed use low and moderate income housing. Thomas F. Carroll, III, Esq. and Stephen Eisdorfer, Esq. of Hill Wallack represented the New Jersey Builders Association opposing the application by the League.
By: Thomas F. Carroll, III, Esq.
The New Jersey Legislature has had a busy year passing laws of interest to the real estate development industries. The first such bill is the “Roberts bill” (also known as A-500), now signed into law by Governor Jon Corzine. The Roberts bill makes a number of important changes affecting lower income housing obligations as applied to residential and nonresidential developers and builders.
The second significant bill is the Permit Extension Act. That bill has been passed by both houses of the Legislature but, as of this writing, has not yet been signed into law by Governor Corzine. Assuming it is signed into law as expected, the Permit Extension Act will extend many permits and approvals for the period of time specified in the legislation. A summary of these important legislative developments follows.
Filling an important gap in public information, Hill Wallack LLP has calculated the fair share obligation for each town in New Jersey established by the so-called “third round” regulations adopted by the New Jersey Council on Affordable Housing (COAH) on May 6, 2008.
By Thomas F. Carroll, III, Esq., Stephen M. Eisdorfer, Esq.
On May 6, 2008, the New Jersey Council on Affordable Housing (COAH) made yet another stab at adopting “third round” regulations. In essence, COAH adopted the rules it had proposed in December, 2007 while simultaneously proposing a 74-page set of comprehensive amendments to those adopted rules. Members of the public may submit comments on the newly proposed amendments by August 15, 2008, and COAH could adopt those amendments in September 2008. COAH has also indicated that it may propose yet further amendments at that time.
Continue reading "COAH Adopts “Third Round” Rules; Proposes More Amendments" »