Category: Development/Redevelopment
An amendment to the Municipal Land Use Law (MLUL) which Governor Christie signed into law on May 4, 2010, will protect developers from municipal zone changes that are rushed through, often as a result of public opposition, to thwart a specific development proposal. Under the new law, which takes effect in one year, the development regulations which apply to a project would be those in effect on the date the application is filed with the municipal land use board.
Senate Bill S-1, which revises and reforms many of the statutes relating to affordable housing in New Jersey, was voted out of the Senate Economic Growth Committee on June 3rd with amendments. S-1 would abolish the Council on Affordable Housing (COAH) and would allow municipalities to administer their own affordable housing obligations. S-1 would eliminate State imposed calculations of affordable housing need and would permit local governments to take charge of planning for affordable housing.
The tables were turned in a case decided by the New York Court of Appeals on February 18. In a reversal of their usual roles, an upstate developer argued that its properties were contaminated, while the Department of Environmental Conservation (DEC) argued that the sites did not require remediation. The court agreed with the developer, and the result could mean significant tax credits for potential redevelopers of contaminated sites throughout the state.
The Fair Share Housing Center filed a suit on February 17, 2010 challenging Governor Christie’s Executive Order halting the actions of the Council on Affordable Housing.
On February 9, 2010, Governor Chris Christie issued an Executive Order stopping all work for ninety (90) days on the processing of applications for substantive certification or implementation of the Third Round regulations by the Council on Affordable Housing (COAH). The Executive Order also creates a five-member Housing Opportunity Task Force which is tasked with producing a public report with analysis and recommendations regarding the current COAH rules within 90 days.
Senator Raymond J. Lesniak announced that on Monday, February 1, the Senate Economic Growth Committee, which he chairs, will begin hearing testimony on his Bill S-1, co-sponsored by Senator Bateman. S-1 would abolish the Council on Affordable Housing (COAH) and establish a streamlined and simple process to comply with NJ Supreme Court mandates that require every municipality maintain a fair share of low- and moderate-income housing.
Lenders, as we all know, continue to be saddled with under-performing and non-performing commercial real estate mortgage loans. A quick internet search will reveal that many are predicting future defaults on billions and billions of dollars of loans. Amongst many other implications for both the lending institutions and the economy at large, carrying these loans impacts reserve requirements and, in turn, available capital. Potentially, we have the makings of a classic “vicious cycle.”
