A3427

An Act concerning affirmative marketing plans for affordable housing and amending P.L.2020, c.51.

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

1. Section 4 of P.L.2020, c.51 (C.52:27D-321.6) is amended to read as follows:

4. a. (1) The owner, developer, or property manager [, or other administrative entity] required to implement the affirmative marketing plan of a newly constructed development where affordable housing units will be leased or sold for the first time shall be required to post a listing on the Housing Resource Center of the available affordable housing units, on or before the earlier of: [(1)] at least 60 days prior to conducting a lottery of the applicants; or [(2)] within one day following when the owner, developer, or property manager [, or other administrative entity] provides any information regarding how to apply for units to prospective applicants or solicits any applications from potential applicants through any other means. The posting shall include, at a minimum, the date that the affordable housing units are expected to be completed, the date of the lottery, the number of affordable housing units, an accounting of how many of the affordable housing units will be available to very low-, low-, and moderate-income households, and each bedroom size that will be available.

(2) A lottery shall not take place less than 60 days following posting on the Housing Resource Center. Any posting on the Housing Resource Center shall provide a link to an online fillable form or Portable Document Format (PDF) form of the application for the affordable housing units on the Internet website of the owner, developer, or property manager [, or other administrative entity] and information on how to request a paper copy of the application from the owner, developer, or property manager [, or other administrative entity].

b. The owner, developer, or property manager [, or other administrative entity] required to implement the affirmative marketing plan of an existing development where one or more affordable housing units becomes available shall post vacancies and waitlist openings for any such unit on the Housing Resource Center and the requirements set forth in the affirmative marketing plan of the [municipality] agency, for the municipality where the development is located. The posting shall be made within one day of accepting applications and shall include, at a minimum, the expected date that the affordable housing units will become available, the number of affordable housing units, an accounting of how many of the affordable housing units will be available to very low-, low-, and moderate-income households, and each bedroom size that will be available.

c. (1) From time to time the owner, developer, or property manager [, or other administrative entity] required to implement the affirmative marketing plan of an existing development may elect to conduct a new lottery to generate or expand the pool of applicants, provided that applicants already on a waitlist for a particular unit type are not displaced from their place in the queue in the lottery. In such cases, the owner, developer, or property manager [, or other administrative entity] shall be required to post a listing on the Housing Resource Center Internet website at least 60 days prior to conducting the lottery of the applicants, or within one day of when the owner, developer, or property manager [, or other administrative entity] provides any information regarding how to apply for the lottery to prospective applicants or solicits any applications from potential applicants through any other means, whichever is earlier.

(2) A lottery shall not take place less than 60 days following posting on the Housing Resource Center. Any posting on the Housing Resource Center shall provide a link to an online fillable form or Portable Document Format (PDF) form of the application for the affordable housing units on the Internet website of the owner, developer, or property manager, [or other administrative entity] and information on how to request a paper copy of the application from the owner, developer, or property manager [, or other administrative entity].

d. The owner, developer, or property manager [, or other administrative entity] shall submit evidence of the listing of their available units and waitlist openings, as required by this section, to the [administrative agent for the municipality] agency.

e. (1) The [administrative agent for the municipality and] agency, in coordination with the municipal housing liaison, shall ensure compliance with the provisions of this section.

(2) The [administrative agent for the municipality and] agency, in coordination with the municipal housing liaison, shall have the authority to levy fines against the owner of the development for instances of noncompliance, following written notice to the owner. The fine for the first offense of noncompliance shall be $5,000, the fine for the second offense of noncompliance shall be $10,000, and the fine for each subsequent offense of noncompliance shall be $15,000.

(3) The Executive Director of the agency may adjust the fine schedule, but shall not adjust the fine schedule until at least 60 months after the effective date of P.L.2020, c.51 (C.52:27D-321.3 et seq.).

(4) All revenue generated from the fines levied pursuant to this section shall be deposited into the municipality's affordable housing trust fund for the municipality where the property is located.

(5) A fine shall not be issued pursuant to this subsection unless the [administrative agent for the municipality or] agency, in coordination with the municipal housing liaison, first provides the owner with written notice no less than two months prior to the date the fine is levied. A fine shall only be issued if the offense has not been cured within that two-month timeframe. Issuance of a written notice or a fine shall not provide exemption to the requirement of conducting a lottery no less than 60 days following posting on the Housing Resource Center.

(6) The [administrative agent and] agency, in coordination with the municipal housing liaison, shall have the authority to require the owner, developer, or property manager [, or other administrative entity] to conduct a new lottery if the provisions of this section are not implemented properly.

f. A municipality, including the municipal housing liaison, shall cooperate with the agency in carrying out the provisions of this section. If a municipality, including the municipal housing liaison, fails to [comply with] cooperate with the agency in carrying out the provisions of this section, then the municipality shall be considered non-compliant with the affirmative marketing plan requirements, except in cases in which the municipality takes appropriate corrective action [pursuant to this section that such corrective action shall be construed as remaining] to cooperate with the agency and remain in compliance.

g. With respect to the affirmative advertising required through newspaper and radio or television, or other affirmative marketing provisions currently required, such advertising shall not be eliminated under the provisions of P.L.2020, c.51 (C.52:27D-321.3 et seq.), and shall continue as required, including the provisions of the Uniform Housing Affordability Controls promulgated by the New Jersey Housing and Mortgage Finance Agency.

h. On the effective date of P.L. , c. (pending before the Legislature as this bill), the agency shall assume administrative responsibility for all affirmative marketing of affordable housing units.

(cf: P.L.2020, c.51, s.4)

2. This act shall take effect on the first day of the third month next following enactment, except the New Jersey Housing and Mortgage Finance Agency may take anticipatory action necessary to effectuate the provisions of this bill.

STATEMENT

This bill would require the New Jersey Housing and Mortgage Finance Agency (HMFA) to assume administration of and responsibility for the affordable housing marketing plan for all affordable housing units. The bill would eliminate from affirmative marketing plan requirements any other administrative entity of the municipality that is responsible for the creation, implementation, or posting of the affirmative marketing plan. Additionally, the HMFA, instead of the municipality, is required to coordinate with the municipal housing liaison in enforcing the affirmative marketing plan requirements of owners, developers, or property managers.

The bill would take effect on the first day of the third month following enactment, except that the HMFA would be permitted to take anticipatory action necessary to effectuate the provisions of the bill.