COAH Reform Bill Move Forward in the Senate
Thursday, February 26, 2009

MEMORANDUM

TO: Members of the Senate Budget & Appropriations Committee

FROM: Christina M. Genovese, Manager, Government Relations

RE: S-2485 (Lesniak/Bateman)

DATE: February 26, 2009

The Chamber of Commerce Southern New Jersey supports S-2485 (Lesniak/Bateman), which modifies the law concerning affordable housing and makes an appropriation to the Affordable Housing Trust Fund.

This bill makes various changes to the "Fair Housing Act" and to recently adopted law affecting the provision of affordable housing, which was signed into law on July 17, 2008. If enacted, this legislation would impose a moratorium on the collection of the 2.5% non-residential development fee imposed by the “Statewide Non-Residential Development Fee Act” for 18 months following the effective date. The revenue stream halted by the moratorium would be replaced by a $15 million appropriation from the Long term Obligation and Capital Expenditure Fund.

The Chamber believes that the 2.5% non-residential fee acts as an impediment to the state’s economic recovery. During an economic downturn, like the one currently affecting New Jersey and the rest of the nation, requiring developers to pay fees may hamper non-residential development that is so desperately needed to pull us out of this economic slump. The Chamber believes that the 18 month moratorium will promote construction and create construction jobs by significantly reducing the price of a project.

Additionally, the Chamber is pleased that S-2485 (Lesniak/Bateman) entirely exempts from the 2.5% fee projects that received site approvals prior to the July 2008 bill signing of the revised affordable housing laws. This measure will greatly benefit the Atlantic City area, where multi-million dollar casinos would have been significantly impacted by this fee.

As we deal with the current recession, the Chamber believes our policymakers must do everything in their power to stimulate the economy and encourage development. For these reasons, we urge you to vote “yes” on S-2485 (Lesniak/Bateman).