Sponsored by:
Assemblyman ROY FREIMAN
District 16 (Hunterdon, Mercer, Middlesex and Somerset)
Assemblywoman MITCHELLE DRULIS
District 16 (Hunterdon, Mercer, Middlesex and Somerset)
Assemblywoman YVONNE LOPEZ
District 19 (Middlesex)
Co-Sponsored by:
Assemblywoman McCoy
SYNOPSIS
Facilitates construction and rehabilitation of affordable housing built in part through sweat equity by eventual occupant.
CURRENT VERSION OF TEXT
As introduced.
An Act facilitating affordable housing production through sweat equity, amending and supplementing P.L.1985, c.222, and amending P.L.2005, c.350.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) a. The Commissioner of Community Affairs shall establish an application process, and shall approve appropriate applicants as sweat equity certified nonprofits. The commissioner shall approve an applicants certification application if the applicant:
(1) possesses appropriate experience in facilitating the construction or rehabilitation, or both, of dwelling units, in part through the provision of sweat equity;
(2) maintains appropriate controls on the affordability of dwelling units produced, in part through sweat equity, for low- or moderate-income households, to ensure that the units remain affordable to low- and moderate-income households for a reasonable period of time;
(3) maintains a policy of promoting the opportunities that the organization offers in the production of housing through sweat equity to a diverse cross-section of the public; and
(4) is organized pursuant to the New Jersey Nonprofit Corporation Act, N.J.S.15A:1-1 et seq., or is a corporation organized pursuant to Title 16 of the Revised Statutes.
b. If sweat equity is used in the construction or rehabilitation of a low- or moderate-income dwelling unit, and the construction or rehabilitation of the unit is facilitated by a nonprofit entity that is approved as a sweat equity certified nonprofit, then:
(1) the adaptability
requirements of P.L.2005, c.350
(C.52:27D-311a et al.) shall not apply;
(2) the provisions of law, rule or regulation, designed to implement P.L.1985, c.222 (C.52:27D-301 et al.) that require an affordable unit to be affirmatively marketed to the public in order to count toward the fair share affordable housing obligation of a municipality, shall not apply, including but not limited to P.L.2020, c.51 (C.52:27D-321.3 et seq.); and
(3) the controls on affordability maintained by the sweat equity certified nonprofit pursuant to paragraph (2) of subsection a. of this section may be substituted for the equivalent requirements of the Uniform Housing Affordability Controls promulgated by the New Jersey Housing and Mortgage Finance Agency.
c. The commissioner shall direct the Office of Local Planning Services, or other appropriate offices or divisions of the Department of Community Affairs, to provide expedited assistance to sweat equity certified nonprofits and municipalities in:
(1) ensuring that units, for which sweat equity is used in the construction or rehabilitation pursuant to subsection b. of this section, are counted towards the fair share affordable housing obligation of the municipality;
(2) facilitating the transfer of abandoned property in the municipality, as appropriate for the purpose of low- and moderate-income housing production, to the sweat equity certified nonprofit through the necessary processes, as provided in statutes and regulations, including but not limited to the process for individual abandoned property takings pursuant to paragraph (2) of subsection c. of section 37 of the New Jersey Urban Redevelopment Act, P.L.1996, c.62 (C.55:19-56); and
(3) facilitating use of the municipal affordable housing trust fund, and the New Jersey Affordable Housing Trust Fund, for the production of units for which sweat equity is used in the construction or rehabilitation, pursuant to subsection b. of this section.
2. Section 4 of P.L.1985, c.222 (C.52:27D-304) is amended to read as follows:
4. As used in P.L.1985, c.222 (C.52:27D-301 et al.):
a. Council means the Council on Affordable Housing established in P.L.1985, c.222 (C.52:27D-301 et al.), which shall have primary jurisdiction for the administration of housing obligations in accordance with sound regional planning considerations in this State.
b. Housing region means a geographic area of not less than two nor more than four contiguous, whole counties which exhibit significant social, economic and income similarities, and which constitute to the greatest extent practicable the primary metropolitan statistical areas as last defined by the United States Census Bureau prior to the effective date of P.L.1985, c.222 (C.52:27D-301 et al.).
c. [Low income housing] Low-income housing means housing affordable according to federal Department of Housing and Urban Development or other recognized standards for home ownership and rental costs and occupied or reserved for occupancy by households with a gross household income equal to 50 percent or less of the median gross household income for households of the same size within the housing region in which the housing is located.
d. [Moderate income housing] Moderate-income housing means housing affordable according to federal Department of Housing and Urban Development or other recognized standards for home ownership and rental costs and occupied or reserved for occupancy by households with a gross household income equal to more than 50% but less than 80 percent of the median gross household income for households of the same size within the housing region in which the housing is located.
e. Resolution of participation means a resolution adopted by a municipality in which the municipality chooses to prepare a fair share plan and housing element in accordance with P.L.1985, c.222 (C.52:27D-301 et al.).
f. Inclusionary development means a residential housing development in which a substantial percentage of the housing units are provided for a reasonable income range of [low and moderate income] low- and moderate