The Plan
The New Jersey Builders Association (NJBA) has gotten a boost of optimism to an industry that’s riddled with rising costs and regulatory burdens. Mikie Sherrill becoming New Jersey’s governor only exacerbated this promising energy. At this point, administration’s campaign is “homing in on affordability and efficiency in government as part of a well-organized, business-like transition plan that she has carried into the Statehouse.”
The NJBA’s CEO and board chair have seen a transition in the way NJ policymakers are starting to approach their goal of increasing housing production. According to them, affordability is now a top priority in production as well as “those peripheral costs that are driving up the cost of homes.” They are referring to construction costs and the like. The association will host their annual Atlantic Builders Convention at the Hard Rock Hotel & Casino of Atlantic City.
NJBA & Governor Sherrill
NJBA is also asking the new Sherrill administration to adopt a more measured approach to what it sees as a “monumentally restrictive” land use policy. This is in the hopes of increasing housing supply across New Jersey. The operation is starting with the state’s first chief operating officer and Sherrill’s promise to develop a real-time dashboard to track permits and actions that will further the plan. Builders and developers have long searched for a system like this. However, it is going to take a long time to set this plan into motion.
Homebuilders are now benefiting from Murphy’s affordable housing law A4; The state Department of Community Affairs now has to calculate new obligations for municipalities and set zoning agreement deadlines. The state will oversee the mediation process between developers and advocates. The newly introduced policies are exceeding expectations; more than 400 municipalities are planning to implement affordable housing plans by the deadline.
What This All Means
All in all, the result will be more unit construction and less time wasted in litigation. Although promising, New Jersey still needs 200,000 deed-restricted units for low- and moderate-income residents. According to the NJBA, constructing so many new homes will correct the supply-demand imbalance responsible for the high price points that are prevalent in New Jersey at the moment.
The New Jersey Business & Industry Association worked with the NJBA to file an appeal to block the Resilient Environments and Landscapes (REAL) rules. This program would greatly expand flood-risk areas and raise the elevation requirement for new development and renovations. Critics argue that these rules would slow down development, devalue property, and worsen the affordability crisis. Ultimately, the plea to forego this policy will likely not go through.
These issues and more will be the topic of conversation in Atlantic City.
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Information courtesy of RE-NJ