Consultant warns of tight deadlines under New Jersey's new affordable-housing law; Jan. 31 binding resolution is key
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Summary
T&M Associates briefed the Hamilton Council on the state's March 2024 affordable-housing amendments, explaining how municipal obligations will be calculated, the role of a vacant-land adjustment, and critical near-term dates (DCA's Oct. 20 obligation release, Jan. 31 binding resolution, June 30 planning-board housing element).
T&M Associates told the Hamilton Township Council on Sept. 17 that new state legislation adopted in March 2024 significantly changes how municipal affordable-housing obligations are calculated and scheduled and imposes near-term deadlines town officials must meet.
"The deadlines are statewide," Caroline Reiter, planning group manager at T&M, told the council. She said the law eliminated the Council on Affordable Housing, created a funded dispute-resolution program and shifts key calculation steps to a regional-to-municipal formula that relies on three municipal factors: equalized nonresidential valuation, income capacity and land capacity.
Reiter emphasized several dates the council will need to track: the state released a new reporting system for trust-fund and unit data with an Sept. 16 input deadline; DCA is due to release municipal affordable-housing obligations on Oct. 20; the council must adopt a binding resolution stating what number it will accept or contest by Jan. 31, 2025; and the planning board must adopt a housing element and fair-share plan by June 30, 2025. If the January or June deadlines are missed, Reiter warned, the municipality risks losing protection from exclusionary-zoning litigation sometimes called the "builder's remedy."
Reiter described the vacant-land adjustment, a technical mapping exercise that identifies developable land and estimates realistic-development potential (RDP). She said Hamilton historically has not used a vacant-land adjustment — which can reduce zoning obligations but creates a requirement to meet the RDP levels explicitly — and that the land-capacity factor is the most subjective and likely contested part of the DCA calculation.
The consultant also reviewed crediting rules under the law: the age-restricted credit cap increased from 25% to 30% of a municipality's obligation, but some bonus-credit categories changed and the rental bonus credit was eliminated. Reiter said the town can pursue a mix of approaches to meet obligations including inclusionary zoning, 100% affordable developments, partnerships with nonprofits and redevelopment of nonresidential sites when eligible.
Council members asked whether prior projects could count toward the new obligation and how quickly DCA would provide supporting calculations. Reiter said DCA is to supply calculation details with the Oct. 20 release; she advised forming an affordable-housing subcommittee and preparing vacant-land and density analyses so the township can evaluate DCA's number before the Jan. 31 binding resolution.
The council concluded the presentation by directing planning and administration to coordinate with T&M ahead of October's obligation publication and to begin internal work to be ready for January’s required action.
