ASSEMBLY HOUSING COMMITTEE

STATEMENT TO

ASSEMBLY, No. 19

STATE OF NEW JERSEY

DATED: NOVEMBER 7, 1996

      The Assembly Housing Committee reports favorably Assembly Bill No. 19.

      This bill would exempt newly constructed or renovated single family homes which are not part of a larger development from mandatory development fees. These fees were first authorized to be collected by municipalities by the court in Holmdel Builder's Ass'n v. Holmdel Township, 121 N.J.550 (1990). The Council on Affordable Housing (COAH), pursuant to that ruling, promulgated regulations which permit a municipality to charge development fees. The term "developer" is defined very broadly under these rules, and includes a developer of large planned real estate communities, as well as an individual home owner who might be constructing a home, making extensive renovations or just buying a neighbor's garden plot.

      Developers of planned real estate communities are better able to absorb or pass along the costs of development fees than are individual home builders. Therefore, this bill should assist the family desiring to construct or renovate its own house in keeping the costs of such housing affordable.