ASSEMBLY, No. 2181

 

STATE OF NEW JERSEY

 

INTRODUCED JUNE 20, 1996

 

 

By Assemblywoman CRUZ-PEREZ, Assemblymen KELLY, Garcia and Caraballo

 

 

An Act concerning affordable housing and amending P.L.1985, c.222.

 

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

    1. Section 20 of P.L.1985, c. 222 (C. 52:27D-320) is amended to read as follows:

    20. The Neighborhood Preservation Program within the Department of Community Affairs' Division of Housing and Development, established pursuant to the Commissioner of the Department of Community Affairs' authority under section 8 of P.L.1975, c.248 (C.52:27D-149), shall establish a separate Neighborhood Preservation Nonlapsing Revolving Fund for monies appropriated by section 33 of this act.

    a. The commissioner shall award grants or loans from this fund for housing projects and programs in municipalities whose housing elements have received substantive certification from the council, in municipalities receiving State aid pursuant to P.L.1978, c.14 (C.52:27D-178 et seq.), in municipalities subject to builder's remedy as defined in section 28 of P.L.1985, c.222 (C.52:27D-328) or in receiving municipalities in cases where the council has approved a regional contribution agreement and a project plan developed by the receiving municipality. Programs and projects in any municipality shall be funded only after receipt by the commissioner of a written statement in support of the program or project from the municipal governing body. Of the amounts appropriated from the fund, the commissioner shall allocate not less than 10 percent for the purposes of rehabilitation of substandard units occupied or to be occupied by low and moderate income households in municipalities eligible to receive State aid pursuant to P.L.1978, c.14 (C.52:27D-178 et seq.).

    b. The commissioner shall establish rules and regulations governing the qualifications of applicants, the application procedures, and the criteria for awarding grants and loans and the standards for establishing the amount, terms and conditions of each grant or loan.

    c. During the first 12 months from the effective date of this act and for any additional period which the council may approve, the commissioner may assist affordable housing programs which are not located in municipalities whose housing elements have been granted substantive certification or which are not in furtherance of a regional contribution agreement; provided that the affordable housing program will meet all or part of a municipal low and moderate income housing obligation.

    d. Amounts deposited in the Neighborhood Preservation Fund shall be targeted to regions based on the region's percentage of the State's low and moderate income housing need as determined by the council. Amounts in the fund shall be applied for the following purposes [in designated neighborhoods]:

    (1) Rehabilitation of substandard housing units occupied or to be occupied by low and moderate income households;

    (2) Creation of accessory apartments to be occupied by low and moderate income households;

    (3) Conversion of nonresidential space to residential purposes; provided a substantial percentage of the resulting housing units are to be occupied by low and moderate income households;

    (4) Acquisition of real property, demolition and removal of buildings, or construction of new housing that will be occupied by low and moderate income households, or any combination thereof;

    (5) Grants of assistance to eligible municipalities for costs of necessary studies, surveys, plans and permits; engineering, architectural and other technical services; costs of land acquisition and any buildings thereon; and costs of site preparation, demolition and infrastructure development for projects undertaken pursuant to an approved regional contribution agreement;

    (6) Assistance to a local housing authority, nonprofit or limited dividend housing corporation or association for rehabilitation or restoration of housing units which it administers which: (a) are unusable or in a serious state of disrepair; (b) can be restored in an economically feasible and sound manner; and (c) can be retained in a safe, decent and sanitary manner, upon completion of rehabilitation or restoration; and

    (7) Other housing programs for low and moderate income housing, including, without limitation, (a) infrastructure projects directly facilitating the construction of low and moderate income housing not to exceed a reasonable percentage of the construction costs of the low and moderate income housing to be provided and (b) alteration of dwelling units occupied or to be occupied by households of low or moderate income and the common areas of the premises in which they are located in order to make them accessible to handicapped persons.     e. Any grant or loan agreement entered into pursuant to this section shall incorporate contractual guarantees and procedures by which the division will ensure that any unit of housing provided for low and moderate income households shall continue to be occupied by low and moderate income households for at least 20 years following the award of the loan or grant, except that the division may approve a guarantee for a period of less than 20 years where necessary to ensure project feasibility.

(cf P.L.1995, c.83, s.3)

 

    2. This act shall take effect immediately.

 

 

STATEMENT

 

    This bill would require that a portion of the funds in the Neighborhood Preservation Nonlapsing Revolving Fund established under the "Fair Housing Act," P.L.1985, c. 222 (C.52:27D-301 et al.), be appropriated for rehabilitation projects in municipalities eligible to receive State aid pursuant to P.L1978, c.14 (C.52:27D-178 et seq.). The bill would also remove the term "designated neighborhood" from the act, since that term is not defined in the "Fair Housing Act," but has been interpreted by the Department of Community Affairs as requiring that proposed projects be located in a neighborhoods which are viable pursuant to the "Viable Neighborhoods Act," P.L.1975, c. 217 (C. 52:27D-142 et seq.).

    Currently under the "Fair Housing Act," the rehabilitation of substandard housing in urban areas is not considered a priority. A major portion of the money in the Neighborhood Preservation Nonlapsing Revolving Fund, which receives its funding from dedicated realty transfer fees, is spent on new construction which is generally located in suburban areas. Under the bill, a minimum amount of 10 percent of the funds appropriated under the "Fair Housing Act" will be earmarked for rehabilitation projects in certain urban areas receiving State aid. This will help assure that there is safe, affordable housing available in urban areas as well as suburban areas.

 

 

                             

 

Requires set-aside of funds appropriated under Fair Housing Act for rehabilitation of certain housing stock.