Governor Proposes COAH Fee Suspension

TRENTON-The primary focus of his state of the state address was the economy and making it better, but Gov. Jon Corzine yesterday also rolled out a couple of proposals that would directly impact developers and property taxpayers. But addressing the economy first, he told lawmakers that, “New Jerseyans are tough and resilient,” he said. “I truly believe that…as a state, our best days lie ahead. Getting New Jersey through the economic crisis is my priority number one, number two and number three.”

Of most interest to real estate developers was his proposal for a suspension of fees tied to development of affordable housing in the state. Under Council On Affordable Housing rules, communities–and by extension residential developers–are required to allot a certain percentage of new houses to the “affordable” category. Developers of non-residential projects are required to pay a fee to support affordable housing development.

“Recognizing the economic realities and pressures of the current economic environment, I am calling [on the COAH board] for a one-year moratorium on the 2.5% developer’s fee,” Corzine said. “I am additionally calling for exempting projects that were in the pipeline before the fee was instituted.”