From The Press of Atlantic City — The state’s new affordable-housing law was poorly planned and could cost the taxpayers of New Jersey billions of dollars, Assemblymen Vincent Polistina and John Amodeo, both R-Atlantic, said Wednesday night in a town hall-style meeting at Atlantic Cape Community College.
The 1975 state Supreme Court’s Mount Laurel decision, which said municipalities are not allowed to use zoning to exclude low- and moderate-income people from moving in, was well intentioned, said attorney Michael Jedziniak, of Brielle, who represents towns in affordable-housing cases.
“Where have we come since 1975? We’ve lost our track,” Jedziniak said to an audience of about 50 people.
The new law, signed by Gov. Jon S. Corzine in July, mandates one affordable unit be built for every five market-price homes and every 16 jobs created, Polistina said. Developers of nonresidential property must pay 2 percent of the project’s cost to an affordable-housing trust fund.
The new law prohibits deals between towns, in which one pays another to take some of its affordable-housing obligations, Polistina said.
Galloway Township has filed multiple appeals to overturn previous court decisions that invalidated a 62-unit regional contribution agreement that would have paid Bridgeton $2.1 million to build 61 units of affordable housing there instead of the township. Two are still pending, township solicitor Michael Blee said Wednesday.
Developer K. Hovnanian has paid related legal bills because the obligation is part of a 3,100-unit Smithville development.
Municipalities have until Dec. 31 to submit their plans to provide affordable housing to the state, Jedziniak said.
With housing and job growth projections, that means Atlantic County would be required to build another 3,194 affordable housing units by 2018, Polistina said.
Estell Manor Mayor Joseph Venezia said the “one-size-fits-all” law doesn’t take towns like his into account. The Pinelands Commission ruled decades ago that the maximum density in Estell Manor could be one house on five acres. And now the small city will have to spend money to fight its obligation to build.
Mullica Township already has spent nearly $4,000 on its affordable-housing plan, money that was not budgeted, Committeewoman Kathy Chasey said. The township probably will spend $7,000 to $8,000 just on preparing the plan.
The 2 percent assessment on nonresidential developers is a bad idea in a sluggish economy, said Richard Baehrle, chairman of the county’s Economic Development Advisory Commission. He said he already has seen three businesses leave New Jersey to set up shop in southern states.
“There are states bending over backwards to get businesses, and what does New Jersey do? Impose a tax,” Baehrle said.
New Jersey is already too overtaxed, several people said.
“My neighbors are putting their homes up for sale. They can’t afford the taxes,” said Donna Ward, of Mantua. “You wait a little while, and we’ll have affordable housing.”
Towns will spend hundreds of thousands of dollars in legal fees to fight the allocations, leading to 3- to-5-cent increases in the tax rate, said Freeholder Frank Giordano.
Egg Harbor Township is one of them, being involved in two lawsuits from a local developer and the advocacy organization Fair Share Housing.
Polistina said he favors a plan that would put affordable housing in municipalities where people work, such as Atlantic City. That would lead to workers spending less money on fuel for commuting and give them more time with their families.
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