Objections to Round 3
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Among the changes to third round regulations that municipalities object to is an increase in the growth share obligation. The new ratios are one affordable unit among five units and one affordable unit for every 16 jobs. Previously, ratios were one affordable unit among nine units and one for every 25 jobs.
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Other changes include a modified review process that would expedite the review of applications including affordable housing; an increase in the state’s affordable housing need from 52,000 units to 115,000 units; and an increase in the cost of Regional Contribution Agreements (RCAs), which allow municipalities to create affordable housing beyond their borders.
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Additionally, new regulations will decrease the credit received for age-restricted affordable housing units; current rules count them as 50 percent of a unit, but they would only count as 25 percent under the new regulations.
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A new aspect of the regulations is that municipalities must provide the opportunity for the construction of affordable housing through zoning regulations based on projected residential and employment growth, which are provided by COAH.
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With new affordable housing regulations going into effect in less than a month, the New Jersey League of Municipalities (NJLOM) is spearheading an effort to rally towns across the state to fight the revised “Round 3” rules.
The Council on Affordable Housing (COAH) previously put out a set of what is known as Round 3 regulations, and every Pascack Valley municipality other than Emerson and Montvale formulated a housing plan, or passed a resolution telling COAH that they were working on a housing plan, based on them.
However, the original Round 3 regulations were rejected in a court challenge and, in December 2007, COAH announced its revised rules.
The rules were approved last Tuesday, May 6, and will go into effect on Monday, June 2, significantly increasing the obligation of affordable housing units relative to market rate units.
When COAH approved the regulations last week, they also approved amendments to the proposed rules including an extension of the deadline by which municipalities must submit housing plans from Sept. 30 to Dec. 31.
Last month, Pascack Valley towns were among 566 municipalities to receive a letter from the NJLOM, asking them to pledge $500 apiece as a means of gauging statewide support for litigation.
“The League is doing everything within reason to administratively correct what we view as fundamentally flawed regulations based on arbitrary growth projections and an invalid methodology,” wrote executive director William Dressel.
According to Mike Cerra, a representative of NJLOM, a rallying cry could practically be heard from the rooftops of municipal buildings across the state.
“There is widespread concern and frustration from local governments,” said Cerra. “The interest has been overwhelming.”
Once the rules go into effect on June 2, the NJLOM will have 45 days to file notice of intent to challenge the regulations. If the League chooses to move forward with the planned legal action, said Cerra, they will collect on the pledges that municipalities are making now. He also said that municipalities that don’t make a pledge now will not be left out if the decide to join the fray down the line.
Cerra said that the NJLOM does not expect every municipality to jump on board; some communities may not look unfavorably on the new regulations and others may not be impacted at all.
“But we’re expecting the triple digits” in terms of support, he added.
Montvale became the first Pascack Valley municipality to show its support, pledging $500 to the NJLOM at the April 29 mayor and council meeting.
Montvale got off to a rocky start with COAH in the 1980s, incorrectly assuming that the obligations were a passing fad. In 2004, however, the borough put together a comprehensive affordable housing plan and received Round 2 substantive certification a year later, which they expected would put them in a good position with respect to meeting Round 3 requirements through 2014. Montvale did not devise a Round 3 housing plan before the original third round regulations were rejected in court.
Under the revised Round 3 regulations, Montvale will be obligated to provide 240 affordable housing units through 2018.
“They’re just a bit out of control,” said Mayor Roger Fyfe.
Members of the council raised doubts about whether anyone could win a lawsuit against COAH, but Fyfe noted that the NJLOM’s involvement alone carries some weight.
“We’re going in as a pack,” Fyfe said of the concept behind the pledge. “The fact that the League wants to initiate a lawsuit is huge.”
The council voted to pledge its support to NJLOM. If and when the League decides to proceed with litigation, it will collect on this and other $500 pledges.
“This is potentially very costly litigation,” said Cerra. “By pooling our resources and acting as one voice, it will help the municipalities.”
Maggie Fazeli Fard's e-mail address is fazelifard@northjersey.com.