Affordable Housing – Blog Archive

Affordable Housing Oversight: Q & A

sstark on April 27, 2016

Category: Affordable Housing, Real Estate, Uncategorized
Tag: Affordable Housing Oversight, Builders, COAH, Council on Affordable Housing, Developers, Owners

BRIEFLY EXPLAIN THE RECENT NJ SUPREME COURT DECISION RELATED TO AFFORDABLE HOUSING OVERSIGHT.

After sixteen years without viable and constitutional regulations for Affordable Housing, the Supreme Court created new mechanisms to meet Affordable Housing goals. To really explain this issue, we need to go back for some history. In 1975 the Supreme Court said every municipality has an obligation to provide a reasonable opportunity for Affordable Housing. In other words, there needs to be a variety of choice in housing for residents and citizens of New Jersey at all income levels. In the eighties, the courts created a methodology to provide Builders’ Remedies, whereby builders who brought suit and established that municipalities engaged in exclusionary zoning would be granted the remedy of rezoning of their property for an inclusionary development, providing for a percentage of affordable housing within a market rate project. In response the legislature adopted the Fair Housing Act (FHA) whereby the Council on Affordable Housing (COAH) was delegated as the authority to create and enforce regulations concerning affordable housing. Since 1999, COAH has failed to act in a responsible manner to create those regulations—we’ve been without constitutionally satisfactory regulations for sixteen (16) years.

Developed Lot Shortages Still a Lingering Problem for Builders

sstark on June 2, 2015

Category: Affordable Housing, Commercial, Retail & Industrial Real Estate, Real Estate, Uncategorized
Tag: Affordable Housing, NJ Builders

The National Association of Homebuilders released a report, consistent with our predictions, indicating that approved lots ready for construction are a scarcity. 62% of builders indicate that the supply of developed lots is low or very low. This phenomenon, at record levels since at least 1997 when records were kept, is likely due to the great recession. For the most part, developers retrenched during the great recession and did not seek approvals for new developments. Instead, they hoarded cash in an effort to position themselves to come out of the great recession or for simply survival.

Unfortunately, few, if any, developers were in a position – or thought it wise – to be investing in approvals for projects for future development. This problem is likely exacerbated in New Jersey where development approvals, particularly for larger developments, can often take two to four years. As the recession subsided, developers in a position to do so typically bought up approved developments and/or brought already approved projects they owned off the shelf for development.

Prior to the great recession – and one could argue it was a depression for the real estate market – developers were largely building homes in New Jersey as fast as they could get them approved. Accordingly, there was not a glut of unbuilt lots. Once developers stopped spending money on future development once the recession hit, we found ourselves in the position we are today. The scenario was predictable.

Interestingly, much of the development in the future may be inclusionary development (including a set-aside for affordable housing) that will arise as a result of the groundbreaking affordable (Mt. Laurel) housing decision in March by the New Jersey Supreme Court. We addressed the affordable housing decision in a previous blog post, which you should definitely check out.

Q&A Video Podcast on NJ Affordable Housing Oversight

sstark on May 6, 2015

As you are undoubtedly well aware, the March 10, 2015 ruling from the New Jersey Supreme Court stripping the Council On Affordable Housing (COAH) of their oversight of the constitutional obligation of every municipality in New Jersey to plan for and accommodate affordable housing has effectively changed the rules for all of us.

The Rules Have Changed!
Not only have nearly 400 New Jersey municipalities been put on notice that they must submit suitable plans for affordable housing to the Courts by July 8, 2015; but this ruling gives builders and developers legal remedies (outside of the administrative appeals process within COAH) with which to compel these municipalities to comply. If you have a property/site that you believe is suitable for affordable housing, the time to act is now.

For your convenience, here is a breakdown of the ruling and the implications for owners and developers in a video podcast Q&A.

https://www.youtube.com/watch?v=7T978BBWm8g

How Can We Help?
Stark & Stark’s attorneys are prepared to leverage our relationships at the municipal level along with our intimate understanding of the zoning and land use process to help get your sites included in municipal affordable housing plans. Our litigators are also ready to counsel you on the legal remedies at your disposal if/when your property/site is excluded from an affordable housing plan. Don’t wait until it’s too late.

Are You Ready? New Jersey Supreme Court Sends Affordable Housing Oversight Back to Trial Courts

sstark on March 23, 2015

Category: Affordable Housing, Real Estate, Uncategorized
Tag: COAH, Council on Affordable Housing

On March 10, 2015, setting aside the state’s “non-functioning” affordable housing process, the New Jersey Supreme Court issued a ruling removing executive branch jurisdiction over low- and moderate-income housing and sent enforcement and oversight back to the trial courts. The ruling is the most significant action in 40 years, when the court originally established the so-called Mount Laurel doctrine, which held that municipalities must provide their “fair share” of affordable housing.

In many ways, the recent decision turns back the clock to a time when individuals, developers, and advocates had to sue to prevent municipalities from blocking approval of zoning for affordable housing development. Although generally regarded as unlikely, the Council on Affordable Housing (COAH) – the executive branch body tasked with setting fair housing obligations and approving municipal plans for meeting those obligations – still has the opportunity, as spelled out in the court’s decision, to reverse their inaction and set new rules.

The Latest in the New Jersey Affordable Housing (COAH) Saga

sstark on December 8, 2014

Category: Affordable Housing, Real Estate, Uncategorized

The New Jersey Supreme Court, after giving the administration countless opportunities to address the issue by other means (constitutional legislation or regulation), has now scheduled a motion by the Fair Share Housing Center to be heard by the Court on January 6, 2015. The motion seeks to enforce the previous order of the Supreme Court directing the Council on Affordable Housing (COAH) to adopt regulations consistent with the second round rules. The language in the Order essentially invites the legislature or COAH to act so in hopes that the Court can avoid a constitutional crisis. While understandable that the Supreme Court wishes to avoid harsh action against State leadership, based upon over 15 years of failure of the executive branch to adopt legal and constitutional regulations or adopt new legislation (previous legislation was conditionally vetoed by Governor Christie and then dropped by the legislature), it would appear that the Supreme Court is expecting a different result after 15 years of recalcitrance and the express failure of COAH to adopt regulations. While the Supreme Court has been reluctant to do so, absent a reversal by this administration, it would appear that the only appropriate remedy is for the Court to order placement of a special master to adopt regulations or to allow parties to file builder’s remedy lawsuits to address the failure to provide reasonable opportunities for affordable housing. Please click here for a copy of the Supreme Court Order.

New Jersey State Bar Association Position on Latest Round of Proposed COAH Regulations

sstark on August 4, 2014

Category: Affordable Housing, Real Estate, Uncategorized
Tag: Real Estate

As Chair of the Land Use Section of the New Jersey State Bar Association, and with the extensive efforts of the Section’s membership, we have advanced a position which opposes the latest round proposed COAH (Council on Affordable Housing) regulations as unconstitutional and in direct contravention of the New Jersey Supreme Court’s directive.

Does Affordable Housing Transform a Project into an Inherently Beneficial Use?

egoldberg on November 15, 2013

Category: Affordable Housing, Real Estate, Uncategorized
Tag: Real Estate

The case of Advance at Branchburg II, LLC V. Township of Branchburg Board of Adjustment, (N.J. Super. Ct. App. Div. 2013) dealt with the issue of whether a residential development could be treated as an inherently beneficial use when only approximately 20% of the development was utilized for affordable housing. The developer was seeking a d (1) use variance for a multi- family residential development consisting of 292 units, of which 59 would be affordable housing units. The developer argued that the inclusion of the affordable housing component rendered the entire development an inherently beneficial use.

The Community Development Block Grant Disaster Recovery Action Plan

sstark on March 13, 2013

Category: Affordable Housing, Real Estate, Uncategorized
Tag: Real Estate

The New Jersey Department of Community Affairs and the Christie Administration along with the newly created Office of Recovery and Rebuilding released the Community Development Block Grant Disaster Recovery Action Plan resulting from the damage from Superstorm Sandy and the allocation of over $1.8 billion in the first phase of federal funding for cleanup, rebuilding and recovery.

Failure to Pay Taxes Can Lead to the Dismissal of Your Property Tax Appeal

tduggan on November 28, 2011

Category: Affordable Housing, Real Estate, Real Estate Tax Appeals, Uncategorized
Tag: Real Estate, Tax Appeals

As a general rule, a property owner must be current with its property taxes when it files a complaint with the New Jersey Tax Court to appeal a property tax assessment. If the taxes are not current, the municipality can move to dismiss the complaint.

New Jersey League of Municipalities Subject to Public Records Request

sstark on August 25, 2011

Category: Affordable Housing, Real Estate, Uncategorized
Tag: Real Estate

The real estate industry has seen a lot of changes over the past several years, and now, for those in the state of New Jersey, there is one more. In the matter of Fair Share Housing Center Inc. v. N.J. State League of Municipalities, the New Jersey Supreme Court took what at first blush might have been thought an unusual decision yesterday, declaring that the New Jersey League of Municipalities is a “public agency” possessing “government records” and therefore is subject to disclosure under the Open Public Records Act. The League is a nonprofit, unincorporated association representing all of New Jersey’s 566 municipalities, which includes over 13,000 municipal officials and over 560 mayors.

Blog Categories