Resolution of the City of Jersey City, NJ City Clerk File No. Agenda No. Approved: Res . 14.139 10'. MAR ?l 2 201i RESOLUTION URGING THE STATE OF NEW JERSEY LEGISLATURE TO ENACT APPROVED: M7 AN AMENDMENT TO THE AFFORDABLE HOUSING TRUST FUND STATUTE COUNCIL offered and moved adoption _of the following Resolution: WHEREAS, under State law, N.J.S.A. 40A: 1 a municipality is allowed to adopt an ordinance to require the recipient of a tax exemption to either set aside affordable residential units or make a contribution to an affordable housing trust fund of the municipality, so long as the amounts are in accord with the State law; and WHEREAS, it a municipality elects to require a contribution J. S. A 40A: 4. 2 limits the amount of the contribution to 500 per residential unit, 50 square foot for commercial space and ten (10) cents a square feet for industrial space; and WHEREAS, by the adoption of Section 304 -29 of the Municipal Code, the City Of Jersey City [City] imposed the maximum contributions permitted by State law; and WHEREAS, the amount of the contribution has proven to be woefully inadequate because it_ requires the construction of at least 200 units of market rate housing to generate the funds needed to construct even one (1) unit of affordable housing (that is, $300,000, if_ paying prevailing wages); and WHEREAS, even without paying prevailing wages, it requires the construction of at least 150 units of market rate housing to generate the funds needed to construct even one (1) unit of affordable housing (nearly $225,000); and . . . WHEREAS, a ratio of 200 or even 150 units of market rate housing to one (1) unit of affordable housing. is not acceptable; and WHEREAS, a municipality is in the best position to evaluate how much a development project in a specific market can afford to pay towards affordable housing in exchange for the approval of a tax exemption; and WHEREAS. it is in the City's best interest to have the flexibility to determine the appropriate per unitor square foot contribution to its affordable housing trust fund for those seeking tax exemptions; and WHEREAS, the State Legislative should amend N.J.S.A. to allow municipalities to require the recipients of tax exemptions to contribute more to the City's Affordable Housing Trust Fund which will create more affordable housing in the City, at no cost to the State of New Jersey. NOW THEREFORE, BE IT RESOLVED by the Municipal Council of the City of Jersey City that: 1. The State Legislature is hereby urged to'enact an amendment to N.J.S.A. so that municipalities can create more affordable housing in return for the approval of tax exemptions, while continuing to balance the requirements of the development community, at no cost to the State of New Jersey. 2. A copy of the proposed amendment to N.J.3.A. is attached hereto. 3. The City Clerk is hereby asked to send a certified copy of this resotution to each member of the Hudson County Legislative Delegation in Trenton. JMr'he 3r05r14 APPROVED: APPR VED AS TO LEGAL RM Bu ine Administrator Corporation Counsel Ceztifi a ion uired Not Required El APPROVED Sec? RECORD or- COUNCIL VOTE ON FINAL PASSAGE 3. 12.1.4 COUNCILPERSON AYE NAY N.v. COUNCILPERSON AYE NAY My. AYE NAY N.v. GAJEWSKI YUN l/ RIVERA RAMOHAL OSBORNE WATTERMAN COLEMAN l/ LAVARRO, PRES Indicates Vote Adopted at a mee' tjfxejMunlcipal Council of the City of Jersey City NJ. Roi?d??. Lavarro, Jr., President of Council Voting (Abslain) Quads Robert Eiyrne City 01? rk M. /3 6? MAR 12 2014 ASSEMBLY BILL STATE OF NEW JERSEY 208th LEGISLATURE TO BE FILED FOR INTRODUCTION IN THE 2014-2015 SESSION Sponsored by An Act providing for designation of affordable housing units required for Tax Abatements. Be It Enacted by the Senate and General Assembly of the State of New Jersey: 1. Section 40A: 12A (Redevelopment And Housing Law) of Title 40 is amended to read as follows: . N.J.S .A. 40A: 1 2A-4.2. Guidelines For Tax Abatement Relative To Affordable Housing. Any municipality that makes the receipt of a tax abatement conditional upon the contribution to an affordable housing trust fund shall include within the ordinance detailed guidelines establishing the parameters of this requirement including, but not limited to, the following: a. Standards governing the extent of the contribution based on the value of construction for market rate residential or non-residential construction, as the case may be; provided, however, that this contribution shall not {exceed} be less than $1,500 per unit for market rate residential construction, $1.50 per square foot for commercial construction, and 10 cents per square foot for industrial construction; b. A schedule of payments based upon phase of construction; and c. Parameters governing the expenditure of those ?mds, legitimate purposes for which those funds may be used, and the extent to which funds may be used by the municipality for administration. Note: All new material is underlined. Repealed material in {brackets}.