Bill Text: NJ S2975 | 2016-2017 | Regular Session | Introduced
Bill Title: Creates Statewide Housing Bank.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2017-01-30 - Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee [S2975 Detail]
Download: New_Jersey-2016-S2975-Introduced.html
Sponsored by:
Senator LINDA R. GREENSTEIN
District 14 (Mercer and Middlesex)
SYNOPSIS
Creates Statewide Housing Bank.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning affordable housing and amending and supplementing P.L.1985, c.222.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) The Legislature finds and declares:
a. The availability of and funding for affordable housing in New Jersey continues to be a pressing concern for State residents and municipalities alike;
b. To address this concern, establishment of a Statewide Housing Bank would create a new funding source for affordable housing in order to provide a reasonable opportunity of access within every region;
c. To effectuate this purpose, the Statewide Housing Bank shall create a separate affordable housing opportunity fund for each of the State's housing regions and the moneys placed therein shall remain in escrow subject to controls and approval by the Statewide Housing Bank; and
d. Contributions made through the Statewide Housing Bank will ensure that resources are distributed in a transparent and effective manner throughout the State in every housing region.
2. (New section) a. There is established in the Department of Community Affairs a Statewide Housing Bank to be administered by the Commissioner of Community Affairs or the commissioner's designee. The commissioner shall promulgate regulations necessary to effectuate the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill) in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.).
b. The Statewide Housing Bank shall create a separate affordable housing opportunity fund for each of the State's housing regions. Moneys deposited in each fund shall remain in escrow subject to controls and approval of the Statewide Housing Bank.
c. A municipality that has been granted substantive certification from the Council on Affordable Housing or a court judgment of repose in the prior round, and which has a current round municipal approved affordable housing plan, may apply to address a portion of its fair share affordable housing obligation through a contribution to the Statewide Housing Bank.
d. A municipality may address up to 25 percent of its fair share through the Statewide Housing Bank. Each credit shall equal one unit of housing for low and moderate income households. A municipality's contribution shall be placed in the regional affordable housing fund for the region in which the municipality is located.
e. The commissioner shall establish guidelines concerning the amount of municipal contributions to the Statewide Housing Bank. The minimum amount required from a municipality for each unit credited shall be $35,000. In establishing the guidelines, the commissioner shall consider the following:
(1) the median amount required to rehabilitate low and moderate income units up to code enforcement standards;
(2) the average subsidy required for a developer to provide a low income housing unit; and
(3) the average subsidy required for a developer to provide a moderate income housing unit.
3. (New section) a. The application process for qualified applicants to the Statewide Housing Bank shall be established by the commissioner and shall include:
(1) the name of the applicant;
(2) the type of housing activity proposed and a proposed project plan specifying the manner in which the applicant shall create or rehabilitate affordable housing;
(3) a proposed timeline for the project;
(4) information concerning any other anticipated or possible funding; and
(5) provision of a copy of the application to the county planning board.
b. Priority shall be given to qualified applicants proposing activity that:
(1) provides a realistic opportunity for low and moderate income housing within convenient access to employment and transportation opportunities;
(2) is consistent with sound comprehensive regional planning goals, policies, and objectives of the State Development and Redevelopment Plan; or
(3) includes any additional criteria established by the commissioner to facilitate municipal compliance and affordable housing opportunities.
c. For the purposes of this section, "qualified applicant" means a municipality that meets criteria set forth in subsection c. of section 2 of P.L. , c. (C. ) (pending for the Legislature as this bill) or an entity designated by municipal resolution on behalf of the municipality.
4. (New section) a. An application approved for funding from the Statewide Housing Bank shall be known as an "affordable housing opportunity project."
b. Every approved affordable housing opportunity project applicant shall submit an annual status report to the Statewide Housing Bank which shall include:
(1) the amount of work completed on the project;
(2) the amount of work yet to be completed on the project; and
(3) a project completion date estimate.
c. The financial records of the Statewide Housing Bank shall be audited annually by the State Auditor or the State Comptroller, at the discretion of the State Treasurer. In addition, the Statewide Housing Bank shall prepare an annual report for each State fiscal year, to be submitted by November 30th of each calendar year to the Governor and the Legislature, and the information contained in the report shall be posted on the Statewide Housing Bank's website. The report shall provide a summary of all of the Statewide Housing Bank's annual fiscal activity, including:
(1) the number of units in each affordable housing opportunity project;
(2) the total amount of grants and loans awarded to each affordable housing opportunity project;
(3) the number and income range of recipients of grants or loans;
(4) the location of the housing renovated or constructed using the monies from the Statewide Housing Bank; and
(5) the number of units upon which affordability controls were place and the time period of those controls.
5. (New section) a. The Statewide Housing Bank shall provide financial incentives for affordable housing purposes through its grants. Each regional affordable housing opportunity fund shall provide funding only for projects within its region.
b. Financial incentives provided pursuant to subsection a. of this section shall be required to incorporate contractual guarantees and procedures by which the Statewide Housing Bank shall ensure that any unit of housing provided for low and moderate income households shall continue to be occupied by low and moderate income households for at least 30 years following its initial conveyance or lease. Notwithstanding this requirement, the Statewide Housing Bank is authorized to approve incentives for a period of no more than 30 years when necessary to ensure project feasibility.
c. For the purposes of this section, "affordable housing purposes" means: (1) rehabilitation of substandard housing units occupied or to be occupied by low and moderate income households; (2) creation of accessory apartments to be occupied by low and moderate income households; (3) conversion of non-residential space to residential purposes, provided a substantial percentage of the resulting housing units are to be occupied by low and moderate income households; or (4) acquisition of real property, demolition and removal of buildings, and construction of new housing that will be occupied by low and moderate income households.
6. Section 11 of P.L.1985, c.222 (C.52:27D-311) is amended to read as follows:
11. a. In adopting its housing element, the municipality may provide for its fair share of low and moderate income housing by means of any technique or combination of techniques which provide a realistic opportunity for the provision of the fair share. The housing element shall contain an analysis demonstrating that it will provide such a realistic opportunity, and the municipality shall establish that its land use and other relevant ordinances have been revised to incorporate the provisions for low and moderate income housing. In preparing the housing element, the municipality shall consider the following techniques for providing low and moderate income housing within the municipality, as well as such other techniques as may be published by the council or proposed by the municipality:
(1) Rezoning for densities necessary to assure the economic viability of any inclusionary developments, either through mandatory set-asides or density bonuses, as may be necessary to meet all or part of the municipality's fair share in accordance with the regulations of the council and the provisions of subsection h. of this section;
(2) Determination of the total residential zoning necessary to assure that the municipality's fair share is achieved;
(3) Determination of measures that the municipality will take to assure that low and moderate income units remain affordable to low and moderate income households for an appropriate period of not less than six years;
(4) A plan for infrastructure expansion and rehabilitation if necessary to assure the achievement of the municipality's fair share of low and moderate income housing;
(5) Donation or use of municipally owned land or land condemned by the municipality for purposes of providing low and moderate income housing;
(6) Tax abatements for purposes of providing low and moderate income housing;
(7) Utilization of funds obtained from any State or federal subsidy toward the construction of low and moderate income housing;
(8) Utilization of municipally generated funds toward the construction of low and moderate income housing; and
(9) The purchase of privately owned real property used for residential purposes at the value of all liens secured by the property, excluding any tax liens, notwithstanding that the total amount of debt secured by liens exceeds the appraised value of the property, pursuant to regulations promulgated by the Commissioner of Community Affairs pursuant to subsection b. of section 41 of P.L.2000, c.126 (C.52:27D-311.2).
b. The municipality may provide for a phasing schedule for the achievement of its fair share of low and moderate income housing.
c. (Deleted by amendment, P.L.2008, c.46)
d. Nothing in P.L.1985, c.222 (C.52:27D-301 et al.) shall require a municipality to raise or expend municipal revenues in order to provide low and moderate income housing.
e. When a municipality's housing element includes the provision of rental housing units in a community residence for the developmentally disabled, as defined in section 2 of P.L.1977, c.448 (C.30:11B-2), which will be affordable to persons of low and moderate income, and for which adequate measures to retain such affordability pursuant to paragraph (3) of subsection a. of this section are included in the housing element, those housing units shall be fully credited as permitted under the rules of the council towards the fulfillment of the municipality's fair share of low and moderate income housing.
f. It having been determined by the Legislature that the provision of housing under P.L.1985, c.222 (C.52:27D-301 et al.) is a public purpose, a municipality or municipalities may utilize public monies to make donations, grants or loans of public funds for the rehabilitation of deficient housing units and the provision of new or substantially rehabilitated housing for low and moderate income persons, providing that any private advantage is incidental.
g. A municipality which has received substantive certification from the council, and which has actually effected the construction of the affordable housing units it is obligated to provide, may amend its affordable housing element or zoning ordinances without the approval of the council.
h. Whenever affordable housing units are proposed to be provided through an inclusionary development, a municipality shall provide, through its zoning powers, incentives to the developer, which shall include increased densities and reduced costs, in accordance with the regulations of the council and this subsection.
i. The council, upon the application of a municipality and a developer, may approve reduced affordable housing set-asides or increased densities to ensure the economic feasibility of an inclusionary development.
j. A municipality may enter into an agreement with a developer or residential development owner to provide a preference for affordable housing to low to moderate income veterans who served in time of war or other emergency, as defined in section 1 of P.L.1963, c.171 (C.54:4-8.10), of up to 50 percent of the affordable units in that particular project. This preference shall be established in the applicant selection process for available affordable units so that applicants who are veterans who served in time of war or other emergency, as referenced in this subsection, and who apply within 90 days of the initial marketing period shall receive preference for the rental of the agreed-upon percentage of affordable units. After the first 90 days of the initial 120-day marketing period, if any of those units subject to the preference remain available, then applicants from the general public shall be considered for occupancy. Following the initial 120-day marketing period, previously qualified applicants and future qualified applicants who are veterans who served in time of war or other emergency, as referenced in this subsection, shall be placed on a special waiting list as well as the general waiting list. The veterans on the special waiting list shall be given preference for affordable units, as the units become available, whenever the percentage of preference-occupied units falls below the agreed upon percentage. Any agreement to provide affordable housing preferences for veterans pursuant to this subsection shall not affect a municipality's ability to receive credit for the unit from the council, or its successor.
k. A municipality may propose to meet a portion of its fair share through the Statewide Housing Bank pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill).
(cf: P.L.2013, c.6, s.1)
7. This act shall take effect on first day of the seventh month following the date of enactment except that the Commissioner of Community Affairs may take any administrative action in advance thereof as necessary to effectuate the purposes of this act.
STATEMENT
This bill establishes the Statewide Housing Bank (SHB) to provide a new source of funding for affordable housing opportunities within the State's housing regions.
Under the provisions of the bill, the SHB, established in the Department of Community Affairs, will create a separate affordable housing opportunity fund for each of the State's housing regions. An eligible municipality may apply to address up to 25% of its fair share affordable housing obligation through a contribution to the SHB. A municipality's contribution will be placed in the regional affordable housing fund for the region in which the municipality is located. The bill directs the Commissioner of Community Affairs to establish guidelines for the amount of municipal contributions to the SHB, but provides that the minimum amount required from a municipality, per unit, will be $35,000.
The bill defines a "qualified applicant" as a municipality that has been granted substantive certification from the Council on Affordable Housing or a court judgment of repose in the prior round, and which has a current round municipal approved affordable housing plan.
The application process to SHB will be established by the commissioner and is to include:
(1) the name of the applicant;
(2) the type of housing activity proposed and a proposed project plan specifying the manner in which the applicant shall create or rehabilitate affordable housing;
(3) a proposed timeline for the project;
(4) information concerning any other anticipated or possible funding; and
(5) provision of a copy of the application to the county planning board.
The bill further provides that priority will be given to qualified applicants proposing activity that:
(1) provides a realistic opportunity for low and moderate income housing within convenient access to employment and transportation opportunities;
(2) is consistent with sound comprehensive regional planning goals, policies, and objectives of the State Development and Redevelopment Plan; or
(3) includes any additional criteria established by the commissioner to facilitate municipal compliance and affordable housing opportunities.
Finally, the bill authorizes the SHB to provide financial incentives for affordable housing purposes through its grants.
