NJRC Wins Abolition of RCAs, Nearly 600 Attend Bill Signing

After a three year campaign spearheaded by NJRC, on July 17, 2008 Governor Jon Corzine signed legislation abolishing regional contribution agreements, or RCAs, and revamping New Jersey''s affordable housing policy. RCAs were the loophole that concentrated poverty and let rich towns pay poor towns to take their low-income housing. Urban policy expert David Rusk called the new housing law "the most significant one in the nation in the last 20 years." Another highlight of the new policy is $160 million in new annual funds for affordable housing.

Courier Post

July 17, 2008

Corzine approves housing reform

By GREGORY J. VOLPE GANNETT STATE BUREAU

MOUNT LAUREL - In a scene reminiscent of a Southern Baptist tent revival, Gov. Jon S. Corzine signed legislation on Thursday overhauling the state''''''''s affordable housing policy that advocates called landmark and critics called another property tax raiser.

It "is the most important housing reform legislation enacted in the nation, in the past two decades," said David Rusk, a housing consultant retained by the New Jersey Regional Coalition.

With gospel music, sweltering summer sun and sermon-esque speeches, officials, clergy and advocates touted the measure, which Corzine signed at the Ethel R. Lawrence townhouse community named for the woman whose lawsuit led to the Supreme Court decisions that said every town has an obligation to set aside affordable housing.

"This is a day of hope, but it''''''''s also a day of accepted responsibility," said Corzine, adding. "The right to an affordable home in New Jersey is just that - it''''''''s simply a right."

The legislation most notably bans regional contribution agreements, or RCAs, the process in which richer towns can sell off their affordable housing obligations to poorer ones.

"It concentrates the poor in the most impoverished cities, locking them into enclaves of disadvantage," said Bishop Joseph Galante of the Camden diocese. "Out of sight and out of mind with jobs and opportunity out of reach."

Among other provisions, the new law also levies a 2.5 percent tax on non-residential developers to build affordable units and sets aside a portion of affordable units for very low income families - those earning less than 30 percent of median household income.

Peter J. O''''''''Connor, executive director of the Fair Share Housing Development Inc., which litigated the case spurred by Lawrence, who died 14 years ago, said his 40-year effort is neither a legal, nor legislative issue.

"It is a moral issue of how we as people treat each other," O''''Connor said.

Medford Mayor Chris Myers, running against state Sen. John Adler, D-Camden, for Congress, and a handful of other Burlington County state and local officials attended the signing to voice their opposition.

"This is essentially an unfunded mandate," said Myers, saying the development fees won''''''''t be enough to build homes; towns won''''''''t get any relief for the increased demands on schools, police and other services new affordable mandates would bring; and that the new construction fee could drive developers from New Jersey to surrounding states.

The legislation, coupled with new rules from the Council on Affordable Housing that doubled the amount of affordable homes New Jersey municipalities would be obligated to build, have drawn protests from local officials.

The New Jersey State League of Municipalities, with the support of about 180 mayors, filed a challenge to those rules, saying officials erred in their calculations. Some 19 other towns filed a separate protest.

The league, which opposed banning RCAs, said it cautiously encouraged by a statement from Assembly Speaker Joseph J. Roberts Jr., D-Camden, who said he wants to ensure the state''''''''s new goals are appropriately calculated.

"It would be naive to believe that, left unaddressed, this will not negatively impact taxpayers," league executive director William G. Dressel Jr. said in a statement.