DEMOCRATS RECOGNIZE AFFORDABLE HOUSING MISTAKES THEY ENACTED LAST YEAR

SENATE PANEL APPROVES MEASURE TODAY TO TWEAK AFFORDABLE HOUSING LAW, BUT DEMOCRATIC LEADERS STILL SHUN TOTAL REFORM OFFERED BY REPUBLICANS

             Assemblymen Scott T. Rumana and David C. Russo said today that Democratic leaders should embrace a Republican proposal to truly fix the mistakes made over the past year when regional contribution agreements, or RCAs, were outlawed and 115,000 units were mandated upon municipalities based on faulty criteria.

            “Months ago, we warned that the new affordable housing law and subsequent mandates would harm the environment, stress existing infrastructure and services and raise property taxes,” said Rumana, R-Passaic, Bergen and Essex. “It’s nice that the Democratic lawmakers who pushed for these ill-sighted mandates now recognize the harm they’ve done, but it’s puzzling why they continue to stop short of a full-fledge reform of affordable-housing law.”

            Today, the Senate Economic Committee advanced legislation to place a one-year moratorium for a 2.5 percent fee on developers that was meant to replace the funds cities used to receive by taking another municipality’s obligation.

            “We need to bring back RCAs that help both suburban and urban municipalities, as well as implementing a new permanent plan for affordable housing that sets realistic goals and is fair to taxpayers,” said Russo, R-Passaic, Bergen and Essex.

            Rumana pointed out that the Senate committee barely addressed problems with affordable-housing mandates.

            “They did very little to address fundamental flaws in affordable housing, such as repealing the builders’ remedy, which could add hundreds and hundreds of thousands of

market-rate housing in our communities,” Rumana said.
            Republicans have offered legislation that would restore RCAs, permanently repeal the 2.5 percent development fee that’s hinder job growth, end the builder’s remedy that could force growth on towns and correct a flawed formula that said affordable houses should be built on highway medians and open space.

            “The Democrats’ solution to their failed affordable-housing mandates of 2008 is centered on delaying a tax for 18 months and hoping the economy miraculously rebounds,” Russo said. “Those half-steps won’t work. Affordable housing needs a complete overhaul.”