SENATE, No. 2180

STATE OF NEW JERSEY

INTRODUCED JUNE 12, 1997

By Senators PALAIA, KYRILLOS and Ciesla

An Act concerning the period of usefulness of affordable housing projects and supplementing chapter 2 of Title 40A of the New Jersey Statutes.

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

    1. Notwithstanding the provisions of N.J.S.40A:2-22, or any other law to the contrary, the period of usefulness of any project, undertaking or regional contribution agreement involving the construction or rehabilitation of low and moderate income housing in order to fulfill a fair share housing obligation pursuant to P.L.1985, c.222 (C.52:27D-301 et al.) shall be 20 years or such lesser period as a municipality may determine.

    2. This act shall take effect immediately.

STATEMENT

    This bill would permit a municipality to issue bonds with maturity terms as long as 20 years if the proceeds of the bonds are used for the construction of affordable housing. This would override the court's decision in AQN Associates, Inc. v. Township of Florence, 248 N.J. Super. 597 (App.Div. 1991) which determined that the term be only six years. The longer bonding term will help some municipalities in financing affordable housing projects.

Allows 20 year financing of affordable housing projects.