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A1229
ASSEMBLY, No. 1229
STATE OF NEW JERSEY
222nd LEGISLATURE
�
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Assemblyman MICHAEL INGANAMORT
District 24 (Morris, Sussex and Warren)
Assemblywoman DAWN FANTASIA
District 24 (Morris, Sussex and Warren)
SYNOPSIS
���� Provides municipality with affordable housing credit
toward its municipal fair share housing obligation for funds transferred to the
New Jersey Affordable Housing Trust Fund pursuant to P.L.2008, c.46.
CURRENT VERSION OF TEXT
���� Introduced Pending Technical Review by Legislative
Counsel.
��
An Act
concerning municipal affordable housing credit
and amending P.L.2008, c.46.
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.��� Section 8 of P.L.2008,
c.46 (C.52:27D-329.2) is amended to read as follows:
���� 8.��� a. The council may
authorize a municipality that has petitioned for substantive certification, or
that has been so authorized by a court of competent jurisdiction, and which has
adopted a municipal development fee ordinance to impose and collect development
fees from developers of residential property, in accordance with rules
promulgated by the council.� Each amount collected shall be deposited and shall
be accounted for separately, by payer and date of deposit.
���� A municipality may not spend
or commit to spend any affordable housing development fees, including Statewide
non-residential fees collected and deposited into the municipal affordable
housing trust fund, without first obtaining the council's approval of the
expenditure.� The council shall promulgate regulations regarding the
establishment, administration and enforcement of the expenditure of affordable
housing development fees by municipalities.� The council shall have exclusive
jurisdiction regarding the enforcement of these regulations, provided that any
municipality which is not in compliance with the regulations adopted by the
council may be subject to forfeiture of any or all funds remaining within its
municipal trust fund.� Any funds so forfeited shall be deposited into the
"New Jersey Affordable Housing Trust Fund" established pursuant to
section 20 of P.L.1985, c.222 (C.52:27D-320).
���� b.��� A municipality shall
deposit all fees collected, whether or not such collections were derived from
fees imposed upon non-residential or residential construction into a trust fund
dedicated to those purposes as required under this section, and such additional
purposes as may be approved by the council.
���� c.���� (1) A municipality may
only spend development fees for an activity approved by the council to address
the municipal fair share obligation.
���� (2)�� Municipal development
trust funds shall not be expended to reimburse municipalities for activities
which occurred prior to the authorization of a municipality to collect
development fees.
���� (3)�� A municipality shall set
aside a portion of its development fee trust fund for the purpose of providing
affordability assistance to low and moderate income households in affordable
units
included in a municipal fair share
plan, in accordance with rules of the council.
���� (a)�� Affordability assistance
programs may include down payment assistance, security deposit assistance, low
interest loans, common maintenance expenses for units located in condominiums,
rental assistance, and any other program authorized by the council.
���� (b)�� Affordability assistance
to households earning 30 percent or less of median income may include buying
down the cost of low income units in a municipal fair share plan to make them
affordable to households earning 30 percent or less of median income. The use
of development fees in this manner shall not entitle a municipality to bonus
credits except as may be provided by the rules of the council.
���� (4)�� A municipality may
contract with a private or public entity to administer any part of its housing
element and fair share plan, including the requirement for affordability
assistance, or any program or activity for which the municipality expends
development fee proceeds, in accordance with rules of the council.
���� (5)�� Not more than 20 percent
of the revenues collected from development fees shall be expended on
administration, in accordance with rules of the council.
���� d.��� The council shall
establish a time by which all development fees collected within a calendar year
shall be expended; provided, however, that all fees shall be committed for
expenditure within four years from the date of collection.� A municipality that
fails to commit to expend the balance required in the development fee trust
fund by the time set forth in this section shall be required by the council to
transfer the remaining unspent balance at the end of the four-year period to
the "New Jersey Affordable Housing Trust Fund," established pursuant
to section 20 of P.L.1985, c.222 (C.52:27D-320), as amended by P.L.2008, c.46
(C.52:27D-329.1 et al.), to be used in the housing region of the transferring
municipality for the authorized purposes of that fund.
����
(1)�� A municipality that
transfers its development fee trust fund balance to the "New Jersey
Affordable Housing Trust Fund" pursuant to the provisions of this section
shall receive one unit of affordable housing credit, as of the date of the fund
balance transfer, towards its municipal fair share obligation in proportion to
the minimum per unit amount for the housing region of the transferring
municipality as established by the council.
���� e.���� Notwithstanding any
provision of this section, or regulations of the council, a municipality shall
not collect a development fee from a developer whenever that developer is
providing for the construction of affordable units, either on-site or elsewhere
within the municipality.
���� This section shall not apply
to the collection of a Statewide development fee imposed upon non-residential
development pursuant to sections 32 through 38 of P.L.2008, c.46 (C.40:55D-8.1
et seq.) by the State Treasurer, when such collection is not authorized to be
retained by a municipality.
(cf: P.L.2008, c.46, s.8)
���� 2.��� Section 9 of P.L.2008,
c.46 (C.52:27D-329.3) is amended to read as follows:
���� 9.��� a. The council may
authorize a municipality that has petitioned for substantive certification to
impose and collect payments-in-lieu of constructing affordable units on site
upon the construction of residential development, which payments may be imposed
and collected as provided pursuant to the rules of the council.�
Payment-in-lieu fees shall be deposited into a trust fund, and accounted for
separately from any other fees collected by a municipality.� Whenever a
payment-in-lieu is charged by a municipality pursuant to this subsection, a
development fee authorized pursuant to section 8 of P.L.2008, c.46
(C.52:27D-329.2) shall not be charged in connection with the same development.
���� b.��� A municipality shall
commit to expend collections from payments-in-lieu imposed pursuant to
subsection a. of this section within four years of the date of collection. The
council may extend this deadline if the municipality submits sufficient proof
of building or other permits, or other efforts concerning land acquisition or
project development.� The council shall provide such administrative assistance
as may be required to aid in the construction of affordable housing units.� A
municipality that fails to commit to expend the amounts collected pursuant to
this section within the timeframes established shall be required to transfer
any unexpended revenue collected pursuant to subsection a. of this section to
the "New Jersey Affordable Housing Trust Fund," established pursuant
to section 20 of P.L.1985, c.222 (C.52:27D-320), to be used within the same
housing region for the authorized purposes of that fund, in accordance with
regulations promulgated by the council.
����
(1)�� A municipality that
transfers its payments-in-lieu balance to the "New Jersey Affordable
Housing Trust Fund" pursuant to the provisions of this section shall
receive one unit of affordable housing credit, as of the date of the fund
balance transfer, towards its municipal fair share obligation in proportion to
the minimum per unit amount for the housing region of the transferring
municipality as established by the council.
(cf: P.L.2008, c.46, s.9)
���� 3.��� � This act shall take
effect immediately.
STATEMENT
���� This bill provides municipalities
with affordable housing credit toward their municipal fair share housing
obligation for funds transferred to the �New Jersey Affordable Housing Trust
Fund� pursuant to P.L.2008, c.46.� Under the provisions of the bill, a
municipality that has transferred its development fee trust fund or
payments-in-lieu balances to the �New Jersey Affordable Housing Trust Fund� would
receive one unit of affordable housing credit in proportion to the minimum per
unit amount established for the housing region of the transferring municipality
by the Council on Affordable Housing (�council�).
���� As a point of reference, under
N.J.A.C.5:97-7.1 (the council�s substantive rules for the period beginning June
2, 2008) the minimum per unit transfer amount pursuant to a regional
contribution agreement by housing region was: Housing Region 1 (Northeast) --
$80,000; Housing Region 2 (Northwest) -- $67,000; Housing Region 3 (West
Central) -- $67,000; Housing Region 4 (East Central) -- $70,000; Housing Region
5 (Southwest) -- $71,000; and Housing Region 6 (South-Southwest) -- $80,000.