A2267

An Act permitting certain for-profit affordable housing entities to join certain non-profit entities and housing authorities for insurance purposes, and amending P.L.2004, c.146.

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

1. Section 1 of P.L.2004, c.146 (C.40A:10-36.3) is amended to read as follows:

1. a. For the purposes of P.L.2004, c.146 (C.40A:10-36.3) [a "non-profit] :

“Non-profit housing entity” means an organization that provides housing meeting the low and moderate income limits established by the United States Department of Housing and Urban Development, if that organization is organized as a not-for-profit entity or as a limited partnership, in a low or moderate income housing project that has as its general partner a not-for-profit entity that has as its primary purpose the construction, rehabilitation or management of housing projects for occupancy by persons of low and moderate income.

“For-profit affordable housing entity” means a corporation, partnership, or other organization, created for the purpose of providing one or more:

(1) 100 percent low and moderate income housing development in association with P.L.1985, c.222 (C.52:27D-301 et al.), constructed through the direction of a municipal fair share plan, or a court order to enforce the construction; or

(2) project-based federal rental developments, authorized pursuant to section 8 of the United States Housing Act of 1937 (42 U.S.C. s.1437f), including but not limited to housing constructed for this purpose, and housing converted for this purpose through the federal Rental Assistance Demonstration Program.

b. A non-profit housing entity, or a for-profit affordable housing entity, shall be deemed a local unit for the purposes of P.L.1983, c.372 (C.40A:10-36 et seq.) if it chooses to establish or join a joint insurance fund, pursuant to P.L.1983, c.372 (C.40A:10-36 et seq.), that is comprised of either non-profit housing entities [or] , housing authorities, for-profit affordable housing entities, or a combination thereof. Such joint insurance funds shall not have as its members local units that are municipalities, counties, boards of education, or fire districts.

c. Notwithstanding any provision of law to the contrary, a joint insurance fund established pursuant to P.L.1983, c.372 (C.40A:10-36 et seq.) that includes non-profit housing entities, or for-profit affordable housing entities, or both, as members shall not join together with other local units, as otherwise provided in section 1 of P.L.1983, c.372 (C.40A:10-36), for the purpose of providing contributory or non-contributory group health insurance or group term life insurance, or both, to employees or their dependents or both.

d. Notwithstanding any provision of law to the contrary, a joint insurance fund established pursuant to P.L.1983, c.372 (C.40A:10-36 et seq.) that includes non-profit housing entities, or for-profit affordable housing entities, or both, as members may participate in joint insurance funds:

(1) where the membership is exclusively comprised of other joint insurance funds and whose purpose is to provide excess levels of coverage;

(2) where the membership is exclusively comprised of other joint insurance funds and whose purpose is to accept the transfer of residual claims liabilities; or

(3) whose purpose is to provide environmental impairment liability insurance.

e. A joint insurance fund that has as its members non-profit housing entities, or for-profit affordable housing entities, or both, shall operate pursuant to the provisions of P.L.1983, c.372 (C.40A:10-36 et seq.).

(cf: P.L.2004, c.146, s.1)

2. This act shall take effect immediately.

STATEMENT

This bill would authorize for-profit affordable housing entities to establish or join joint insurance funds that are comprised of either other for-profit affordable housing entities, non-profit housing entities, housing authorities, or a combination thereof. For-profit affordable housing entities, however, would be precluded from joining joint insurance funds that have as their members local units that are municipalities, counties, boards of education, or fire districts.

The bill defines a “for-profit affordable housing entity” as an organization created for the purpose of providing either one or more: (1) 100 percent low and moderate income developments in association with the “Fair Housing Act,” N.J.S.A.52:27D-301 et al., constructed through the direction of a municipal fair share plan, or a court order to enforce the construction, or (2) project-based federal rental developments, authorized pursuant to the federal Section 8 Program, including but not limited to housing constructed for this purpose, and housing converted for this purpose through the federal Rental Assistance Demonstration Program.

The bill provides that joint insurance funds that include for-profit affordable housing entities as members may not provide contributory or non-contributory group health insurance or group term life insurance, or both, to employees or their dependents, or both.

The bill provides that a joint insurance fund that includes for-profit affordable housing entities as members may participate in joint insurance funds:

(1) where the membership is exclusively comprised of other joint insurance funds and whose purpose is to provide excess levels of coverage;

(2) where the membership is exclusively comprised of other joint insurance funds and whose purpose is to accept the transfer of residual claims liabilities; or

(3) whose purpose is to provide environmental impairment liability insurance.

Otherwise, a joint insurance fund that has as its members non-profit housing entities, or for-profit affordable housing entities, would operate pursuant to the provisions of P.L.1983, c.372 (N.J.S.A.40A:10-36 et seq.), the provision of law governing joint insurance funds.