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N.J. appellate court tosses large portion of affordable-housing rules

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TRENTON — They’re often bitter opponents, but Friday housing advocates and environmentalists on one side and the governor, lawmakers and towns on the other side had a "Kumbaya" moment as they all applauded an appellate court decision that tosses out a substantial portion of the state’s affordable-housing rules. That’s not to say everyone agrees with every part of the...

affordable-housing-newark.JPGExterior photo of Montgomery Heights in Newark, which includes 40 affordable housing units. A state appellate court Friday threw out many of the state's affordable housing rules.

TRENTON — They’re often bitter opponents, but Friday housing advocates and environmentalists on one side and the governor, lawmakers and towns on the other side had a "Kumbaya" moment as they all applauded an appellate court decision that tosses out a substantial portion of the state’s affordable-housing rules.

That’s not to say everyone agrees with every part of the 72-page decision released Friday. But they are happy to be getting out from under the roundly disparaged state Council on Affordable Housing’s rules, which have been described as convoluted and unfair — and worse.

"The ruling strikes down the burdensome regulations promulgated by the agency," Bill Dressel, executive director of the New Jersey State League of Municipalities, said in a statement. Those rules "were fundamentally flawed, relying upon an inflated determination of vacant land as well as outdated data.

"As a result, land that was already developed or not suited for development, including some outrageous examples such as highway medians, cemeteries and school grounds, were included in the calculation of projected housing obligations," Dressel said. His organization was among those challenging the rules.

The decision, written by Appellate Judge Stephen Skillman, gives COAH five months to write new regulations. It addresses 22 appeals of COAH’s revised rules, which superseded previous regulations and were adopted in 2008.

COAH and affordable housing sprang from the state’s Mount Laurel court decisions, which said municipalities must provide their fair share of housing for lower-income families.

In Friday’s ruling, joined by appellate judges Jose Fuentes and Marie Simonelli, the court took aim at the so-called "growth share methodology," which imposes low- and moderate-income housing obligations on municipalities based on residential and non-residential development. The court found it had not been shown that the state has enough land within growth areas to meet housing needs, so COAH cannot assume its formula will work.

"Second, and more fundamentally, we concluded that the growth share methodology adopted in the original... rules was invalid because it allowed a municipality to avoid any substantial responsibility for satisfying its obligations to provide affordable housing by adopting land use regulations that discourage growth," Skillman wrote.

The decision notes towns could adopt "self-serving" master plans and zoning laws that minimize their affordable-housing obligations.

The demise of the growth share concept was cheered by housing advocates, but the League of Municipalities said it was "disappointed" and hoped the state Supreme Court will consider its constitutionality.

Housing advocates said the ruling amplifies their position.

"Today’s decision is good for New Jersey’s families, seniors, and people with special needs," said Kevin Walsh, associate director of the Fair Share Housing Center, which appealed the regulations. "Municipalities can’t slam the door in their faces."

Gov. Chris Christie said the decision underscores the Legislature’s need to "end this hopelessly complex and outdated system." He also chided the Assembly, saying it "has refused to act" on legislation to abolish COAH.

The state Senate has passed the bill (S1). Sponsor Sen. Raymond Lesniak (D-Union) said he expects to have revised legislation to the governor soon. "This decision just shows COAH is in a total state of chaos and confusion," he said.


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