SENATE, No. 736

STATE OF NEW JERSEY

211th LEGISLATURE

INTRODUCED FEBRUARY 5, 2004

Sponsored by:

Senator SHIRLEY K. TURNER

District 15 (Mercer)

SYNOPSIS

    Requires increased allocation of balanced housing funds and amounts which may be spent from Housing Demonstration Fund for shelters; appropriates $1 million to DCA rental assistance program.

CURRENT VERSION OF TEXT

    As introduced.

An Act concerning emergency shelters and very low income housing, amending P.L.1985, c.222, amending and supplementing P.L.1984, c.180 (C.52:27D-280 et seq.), and making an appropriation.

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1. (New section) The Legislature finds and declares:

    a. Although the Legislature provided, through the passage of the "Fair Housing Act," P.L.1985, c.222 (C.52:27D-301 et al.) for the construction and rehabilitation of housing to be occupied by low and moderate income households, that act has not provided an opportunity for housing very low or no income households. This omission has resulted in an increased drain on the public and private welfare systems.

    b. In the more than 15 years since the enactment of the "Fair Housing Act," hundreds of millions have been spent on the provision of affordable housing, but very little by comparison has been appropriated for the construction or provision of housing shelters for very low income households.

    c. Instead of providing a coordinated plan for housing very low or no income families, the State has relied on welfare motels, most often at an inflated cost and with a lack of amenities considered basic to safe, decent housing.

    d. It is necessary for the Legislature to review and modify the "Fair Housing Act," to ensure that it provides in some measure for those families who cannot qualify for the affordable housing provided under that act.

    2. Section 20 of P.L.1985, c.222 (C.52:27D-320) is amended to read as follows:

    20. The Neighborhood Preservation Program within the Department of Community Affairs' Division of Housing and Development, established pursuant to the Commissioner of the Department of Community Affairs' authority under section 8 of P.L.1975, c.248 (C.52:27D-149), shall establish a separate Neighborhood Preservation Nonlapsing Revolving Fund for monies appropriated by section 33 of this act.

    a. The commissioner shall award grants or loans from this fund for housing projects and programs in municipalities whose housing elements have received substantive certification from the council, in municipalities receiving State aid pursuant to P.L.1978, c.14 (C.52:27D-178 et seq.), in municipalities subject to builder's remedy as defined in section 28 of P.L.1985, c.222 (C.52:27D-328) or in receiving municipalities in cases where the council has approved a regional contribution agreement and a project plan developed by the receiving municipality. Programs and projects in any municipality shall be funded only after receipt by the commissioner of a written statement in support of the program or project from the municipal governing body.

    b. The commissioner shall establish rules and regulations governing the qualifications of applicants, the application procedures, and the criteria for awarding grants and loans and the standards for establishing the amount, terms and conditions of each grant or loan.

    c. During the first 12 months from the effective date of this act and for any additional period which the council may approve, the commissioner may assist affordable housing programs which are not located in municipalities whose housing elements have been granted substantive certification or which are not in furtherance of a regional contribution agreement; provided that the affordable housing program will meet all or part of a municipal low and moderate income housing obligation.

    d. Amounts deposited in the Neighborhood Preservation Fund shall be targeted to regions based on the region's percentage of the State's low and moderate income housing need as determined by the council. Amounts in the fund shall be applied for the following purposes in designated neighborhoods:

    (1) Rehabilitation of substandard housing units occupied or to be occupied by low and moderate income households;

    (2) Creation of accessory apartments to be occupied by low and moderate income households;

    (3) Conversion of nonresidential space to residential purposes; provided a substantial percentage of the resulting housing units are to be occupied by low and moderate income households;

    (4) Acquisition of real property, demolition and removal of buildings, or construction of new housing that will be occupied by low and moderate income households, or any combination thereof;

    (5) Grants of assistance to eligible municipalities for costs of necessary studies, surveys, plans and permits; engineering, architectural and other technical services; costs of land acquisition and any buildings thereon; and costs of site preparation, demolition and infrastructure development for projects undertaken pursuant to an approved regional contribution agreement;

    (6) Assistance to a local housing authority, nonprofit or limited dividend housing corporation or association for rehabilitation or restoration of housing units which it administers which: (a) are unusable or in a serious state of disrepair; (b) can be restored in an economically feasible and sound manner; and (c) can be retained in a safe, decent and sanitary manner, upon completion of rehabilitation or restoration; [and]

    (7) Other housing programs for low and moderate income housing, including, without limitation, (a) infrastructure projects directly facilitating the construction of low and moderate income housing not to exceed a reasonable percentage of the construction costs of the low and moderate income housing to be provided and (b) alteration of dwelling units occupied or to be occupied by households of low or moderate income and the common areas of the premises in which they are located in order to make them accessible to handicapped persons; and

    (8) Other housing programs for very low or no income households, including, without limitation, projects involving the construction, renovation or rehabilitation of dwellings units for use as temporary or longer-term emergency shelters.

    e. Any grant or loan agreement entered into pursuant to this section shall incorporate contractual guarantees and procedures by which the division will ensure that any unit of housing provided for low and moderate income households shall continue to be occupied by low and moderate income households for at least 20 years following the award of the loan or grant, except that the division may approve a guarantee for a period of less than 20 years where necessary to ensure project feasibility.

(cf: P.L.1995, c.83, s.3)

    3. Section 8 of P.L.1984, c.180 (C.52:27D-286) is amended to read as follows:

    8. There is appropriated to the Department of Community Affairs $1,650,000.00 to establish a fund for the purpose of providing temporary rental and other housing assistance to persons who are homeless or in imminent danger of losing housing, providing interest subsidies to encourage increased availability of affordable housing pursuant to subsection g. of section 24 of P.L.1944, c.85 (C.52:27C-24) and paying the administrative cost of the temporary rental and other housing assistance and interest subsidy programs. Loans made from this fund shall be repaid to the Department of Community Affairs for redeposit in the fund. In addition, the Department of Community Affairs is authorized to apply up to [$500,000.00] $1,000,000 of Housing Demonstration Fund moneys for the purpose of providing loans and grants for the acquisition, construction, repair or rehabilitation of structures which are to be operated as shelters for homeless persons by one or more agencies designated for that purpose pursuant to P.L.1983, c. 343, when it appears to the Commissioner of the Department of Community Affairs that assistance is necessary in order to permit an agency to provide sufficient accommodations for persons likely to be in need of shelter.

(cf: P.L.1984, c.180, s.8)

    4. There is appropriated $1,000,000 from the General Fund to the Department of Community Affairs for deposit into the fund established pursuant to section 8 of P.L.1984, c.180 (C.52:27D-286) for the purposes of providing housing assistance to persons in imminent danger of losing housing.

    5. This act shall take effect immediately.

STATEMENT

    This bill aims at addressing the needs of providing temporary shelter and shelter assistance for very low or no income families who are in danger of becoming homeless. First, the bill amends the "Fair Housing Act," P.L.1985, c.222 (C.52:27D-301 et al.) to provide that some measure of the housing provided under that act be allocated to the very low or no income household, through the construction or renovation of buildings to be used as temporary shelters. Second, the bill increases the funding which may be spent by the Department of Community Affairs (DCA) from the Housing Demonstration Fund from $500,000 to $1,000,000. Third, the bill makes an appropriation of $1,000,000 from the General Fund to the temporary housing assistance fund in the DCA, for assistance under the "Prevention of Homelessness Act, 1984" P.L.1984, c.180 (C.52:27D-280 et seq.). Although these measures will not, in and of themselves, eradicate homelessness, they represent an important step toward including the very low or no income household in the provision of affordable housing in this State.