Changes in N.J. affordable housing near impasse

TRENTON - Lawmakers on Thursday appeared to be moving toward an impasse on proposed affordable-housing changes, one week after Gov. Christie's administration pressed the Legislature to approve changes by the end of June.

Disagreements over affordable housing came amid a swirl of activity in the Statehouse, as the Senate Budget and Appropriations Committee approved a 2.9 percent cap on property taxes and committees in both houses voted to restore $7.5 million that Christie had cut from the budget for women's health and family planning centers.

The Assembly Budget Committee passed the $29.38 billion state budget bill about 7 p.m.

Meanwhile, the Senate budget committee, which approved the spending plan Wednesday evening, spent much of the Thursday in limbo as lawmakers worked to get enough votes to pass four budget-related bills to increase taxes or fees.

Developments on proposed affordable-housing changes represented a potential setback for developers, various lawmakers, and the Christie administration.

The Assembly Budget Committee approved a bill that would extend the moratorium on a 2.5 percent nonresidential developers' fee, set to take effect in July, to the end of October. Money from the fee goes toward affordable housing.

In a rare show of solidarity, housing advocates and the development industry spoke in favor of the measure. But it failed to gain the support of two influential men, Senate President Stephen Sweeney (D., Gloucester) and Sen. Raymond Lesniak (D., Union), who urged the Assembly to pass a proposal with broader changes to affordable-housing rules.

"It's not moving in the Senate," Lesniak said in an interview. "It's just an absolute waste of time."

The Senate on June 10 passed a controversial bill sponsored by Lesniak that would eliminate the 2.5 percent fee but also abolish the Council on Affordable Housing (COAH) and make sweeping changes to how towns may meet their constitutional obligation to provide low- and moderate-income housing.

But the Assembly declined to vote the proposal out of committee last week, after Chairman Jerry Green (D., Union) expressed reservations about how fast the legislation was moving. Assemblyman Albert Coutinho (D., Essex), who sponsored the bill solely addressing the 2.5 percent fee, said Thursday that the lower house had no plans to vote on Lesniak's bill by the end of the month.

He said the Assembly supported ending COAH but had reservations about the constitutionality of Lesniak's bill and wanted to take the time to "get it right." Yet legislators want no negative impact on the development community, he noted, thus extending the suspension of the fees.

Lesniak countered that by itself, extending the suspension of the fees "does absolutely nothing" because of the uncertainty it will create on affordable housing.

Christie campaigned on blowing up COAH and sought the passage of more comprehensive reform before legislators break for the summer.

Lawmakers in both houses meet Monday to vote on the budget, and the Senate and Assembly could use procedural maneuvers to pass either of the bills to take to Christie's desk.

The Assembly budget panel approved the budget bill by 5-4, with Coutinho providing the lone Democratic vote needed for passage. He explained that a state shutdown, which would result if the budget were not passed by the constitutional deadline of June 30, would hurt New Jersey.

Meanwhile, disagreements persisted in the Senate Budget and Appropriations Committee, which was holding its second day of budget hearings.

After Republican Sen. Michael Doherty of Warren County said he would not vote for the bills, Sweeney considered whether to allow Senate Minority Leader Thomas H. Kean Jr. to take Doherty's place on the committee for the votes.

Just before 7 p.m., Sweeney let Kean to take Doherty's place on the budget panel and the four bills cleared the committee.

Earlier in the day, the Senate committee also approved Sweeney's bill to place a 2.9 percent cap on property tax increases, after less than an hour of debate.

"I don't think anyone in New Jersey doesn't recognize that we have a tax problem," said Sweeney. Still, he said, it would be unfair to ignore the progress the state has made in reining in property-tax increases under a 4 percent cap.

The bill passed by 8-4, with Democrats in favor and Republicans against.

Sweeney's bill is a counterproposal to Christie's proposal of a constitutional amendment to place a 2.5 percent cap on property-tax increases, which would require voter approval.

In other business, the Senate budget committee, like its counterpart in the Assembly, voted to restore $7.5 million for women's health at family planning centers.

The governor, who is expected to veto the legislation, proposed cutting all state funding for the centers. Supporters argued that New Jersey would be reimbursed 90 cents on the dollar from the federal government and that the money would save substantially more down the road.

The Assembly budget panel convenes again Friday to consider more budget-related bills.