Governor to urge easing of ‘outdated restrictions,’ according to advance excerpt from State of the State address

Less than a year after signing a sweeping affordable housing law, Gov. Phil Murphy Tuesday is expected to call on lawmakers to expand opportunities for increasing low-cost homes in the state, in some cases by overriding local zoning ordinances.

In his State of the State address Murphy, who is beginning his last year in office, will ask the Legislature to pass bills, including to allow for the addition of small homes akin to in-law suites on single- and two-family lots, the construction of housing or mixed-use developments on vacant or distressed land, and the reduction of parking requirements for housing near mass transit, according to sources in the governor’s office.

All three of these proposals are embodied in bills sponsored by state Sen. Troy Singleton (D-Burlington), although the governor is seeking some changes in them. NJ Spotlight News’ The Change Project series last year also highlighted these approaches as among those proven effective in California and other states.

“I am calling on the Legislature to reform our state’s zoning and permitting laws, with a number of proposals led by Senator Troy Singleton and his colleagues, so we can make it easier to build new housing in the communities where it’s needed most,” read Murphy’s prepared remarks, a portion of which was obtained by NJ Spotlight News.

“By cutting red tape and easing outdated restrictions, we can build potentially thousands of new, affordable housing units over the next decade.”

Linchpin law

New Jersey municipalities could build some 85,000 new homes and renovate another 65,000 for those with low or moderate income over the next decade, under the law Murphy signed last March and that he will call the “most sweeping affordable housing legislation in more than 40 years.”

That law set a state process for determining municipal housing obligations, removing the need for court involvement that has been in place for the last decade.

The municipalities’ first deadline is Jan. 31, when towns must agree to participate in the process and declare the number of units they will build or allow to be built within their borders.

Municipalities can choose not to participate in the process, but would then potentially face lawsuits from builders and be forced to allow high-density development. Under the law, municipalities are scheduled later this year to draft housing plans and revise their zoning laws — leading to the eventual construction of more homes.

Murphy will be building on the affordability theme that he has pressed in much of his second term. But it also may be where resistance is fiercest, as municipal officials are likely to balk at efforts to override local zoning laws.

In calling for the reforms, Murphy will be building on the affordability theme that he has pressed in much of his second term. But it also may be where resistance is fiercest, as municipal officials are likely to balk at efforts to override local zoning laws.

Pressure to act

“As we work to convert that landmark law into action, I am ready to work with you, again, to lower housing costs for New Jerseyans,” Murphy’s remarks read. “This is absolutely essential to helping our families access new opportunities to improve their economic well-being.”

In recent years, Murphy has taken steps to boost affordable housing. Last year, he put $10 million in the state budget to fund a pilot project in 10 towns that agree to permit accessory dwelling units (ADUs), such as in-law suites or garage apartments, at below-market cost. The state Department of Community Affairs is still developing the program, with the application process expected to be ready this summer.

Municipal zoning laws put constraints on what can be built and where. The bills Murphy wants lawmakers to send him could help open more land for construction by easing some of those zoning rules.

In 2022, Murphy earmarked $305 million in federal COVID-19 relief money to be used by the state Housing Mortgage and Finance Agency to help fund 100% affordable housing developments. The Legislature added another $100 million last year.

So far the HMFA has committed more than $335 million to projects that are creating more than 4,000 units and  by next month, all $405 million is expected to be committed to fund more than 4,600 new affordable units, said HMFA Executive Director Melanie R. Walter.

Last fall, the state Department of Community Affairs calculated the number of affordable homes municipalities would be required to zone for under the new law. Opponents of the law have said that the 85,000 total is large and would be difficult to meet without impacting communities with large obligations. Still that number is less than half the 200,000 affordable units that housing advocates have said the state needs.

The latest legislation

Municipal zoning laws put constraints on what can be built and where. The bills Murphy wants lawmakers to send him could help open more land for construction by easing some of those zoning rules.

Singleton, who chairs the Senate Community and Urban Affairs Committee, is the Senate sponsor or co-sponsor of the following legislation:

• S-2347/A-4370 would change municipal ordinances to allow for accessory dwelling units in single-family and duplex neighborhoods). Few municipalities currently allow ADUs;
• S-1408/A-2757 would allow the conversion of stranded, vacant, or economically depressed commercial properties into housing and/or mixed-use projects. Most zoning laws prohibit the construction of homes on land zoned for commercial purposes without getting a variance;
• S-2974/A-3043 would reduce minimum parking requirements and other requirements for developments around mass transit and in denser areas. State regulations set minimum parking requirements and would be amended by the bill to reduce the number of required parking spaces by up to 50%, depending on the proximity of a development to mass transit.

Neither of the bills seeking to allow ADUs or permit the conversion of vacant office parks has advanced to the floor of either house, with versions of the latter bill pending since 2017.

Original Article