S1836

An Act enhancing the ability of religious and nonprofit organizations to convert certain nonresidential property to inclusionary developments with affordable housing and supplementing P.L.1975, c.291 (C.40:55D-1 et seq.).

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

1. a. As used in this section:

"Adjoining property" means property that shares a boundary with an eligible property, including but not limited to, a property that is, at least in part, situated directly across a road from an eligible property.

"Eligible property" means property, including non-residential buildings, owned by a religious organization or tax-exempt nonprofit organization.

"Inclusionary development" means the same as the term defined pursuant to subsection f. of section 4 of P.L.1985, c.222 (C.52:27D-304).

b. A municipal planning board enforcing municipal zoning regulations shall permit conversions or partial conversions of eligible properties into inclusionary developments pursuant to the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill).

c. An inclusionary development that is the subject of an application for development to convert an eligible property shall be a permitted use and shall not require a use variance pursuant to subsection d. of section 57 of P.L.1975, c.291 (C.40:55D-70) if the application for development complies with the following requirements:

(1) the inclusionary development, which may include the demolition of existing structures, complies with the zoning requirements applicable to development projects within the applicable municipal zone as provided for in subsection d. of this section;

(2) at least 20 percent of the residential units to be constructed shall be reserved as very-low income housing, low-income housing, or moderate-income housing, as those terms are defined pursuant section 4 of P.L.1985, c.222 (C.52:27D-304);

(3) of the residential units reserved as very low-income housing, low-income housing, or moderate-income housing, at least 50 percent within each bedroom distribution are low-income units, and at least 13 percent of the low-income units are very-low income units; and

(4) the residential units reserved as very low-income housing, low-income housing, or moderate-income housing comply with the Uniform Housing Affordability Controls promulgated by the New Jersey Housing and Mortgage Financing Agency, required pursuant to the "Fair Housing Act," P.L.1985, c.222 (C.52:27D-301 et seq.).

d. The municipal planning board shall approve an application to repurpose or redevelop an eligible property into an inclusionary development, notwithstanding the eligible property’s location in the municipality, if the project complies with applicable zoning requirements, and as described pursuant to subsection e. of this section.

e. A proposed housing development project on an eligible property that qualifies as a permitted use pursuant to subsection c. of this section shall be allowed the following density and height restrictions:

(1) The development project shall be allowed a density of 40 units per acre and a height of one story above the maximum height otherwise applicable to the zoning district in which the eligible property is located.

(2) If the municipal zoning regulations applicable to the eligible property allow for greater residential density or building heights on the eligible property, or an adjoining property, than permitted in paragraph (1) of this subsection, the greater density or building height shall apply to the eligible property. A development project approved pursuant to this section shall not use an incentive, waiver, or concession to increase the height of the development to greater than the height authorized pursuant to this paragraph. For the purposes of a conversion or partial conversion of an eligible property into an inclusionary development, the owner shall be authorized to apply the zoning restrictions of an adjoining property.

(3) Except as provided in paragraph (2) of this subsection, a housing development project approved pursuant to this section shall be eligible for other applicable incentives, waivers, and programs.

2. Notwithstanding any provision of the "Long Term Tax Exemption Law," P.L.1991, c.431 (C.40A:20-1 et seq.) to the contrary, a project undertaken pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be eligible for long term tax exemption pursuant to the "Long Term Tax Exemption Law," P.L.1991, c.431 (C.40A:20-1 et seq.).

3. The provisions of P.L. , c. (C. ) (pending before the Legislature as this bill) shall not prohibit or limit an applicant’s ability to apply and qualify for tax incentives, financing, or grants in order to supplement investments for projects undertaken pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill). Notwithstanding this provision, project eligibility for tax incentives, financing, or grants, or any other award, shall be determined by the respective awarding entity.

4. A development project and any municipal action undertaken pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) shall be in compliance with the "Municipal Land Use Law," P.L.1975, c.291 (C.40:55D-1 et seq.) and all other applicable municipal zoning ordinance requirements that do not conflict with the requirements of P.L. , c. (C. ) (pending before the Legislature as this bill).

5. This act shall take effect immediately.

STATEMENT

This bill would authorize the conversion of certain property owned by religious and nonprofit organizations to inclusionary developments, limit the criteria for a municipality to reject such an application, and specify tax exemption eligibility.

The bill would require a municipal planning board to permit the conversion or partial conversion of an eligible property, as defined in the bill, into an inclusionary development, for which a certain percentage of the units are reserved as very low-, low-, or moderate-income housing (affordable housing). The conversion of an eligible property into an inclusionary development with affordable housing would be a permitted use and would not require a use variance, and would be subject to certain zoning requirements and the following affordability constraints:

(1) at least 20 percent of the units are required to be reserved as very-low, low-, or moderate-income housing;

(2) of the income-restricted units, at least 50 percent within each bedroom distribution are required to be low-income units, and at least 13 percent of the low-income units as very-low-income units; and

(3) the income-restricted units are required to comply with the State’s Uniform Housing Affordability Controls.

The bill requires a municipal planning board to approve an application to repurpose or redevelop an eligible property into an inclusionary development with affordable housing, regardless of the eligible property’s location in the municipality if the project complies with applicable zoning requirements, as described in the bill. The bill specifies certain permitted density and height criteria.

Regardless of any provision of the "Long Term Tax Exemption Law," P.L.1991 (C.40A:20-1 et seq.) to the contrary, the bill specifies that a project undertaken pursuant to the bill is to be eligible for long term tax exemption pursuant to the "Long Term Tax Exemption Law." The "Long Term Tax Exemption Law" permits a municipality to enter into financial agreements with urban renewal entities, which agreements require an entity to make payments in lieu of real property taxes pertaining to the improvements constructed on the property. The provisions of the bill are not to prohibit or limit an applicant’s ability to apply and qualify for variances, tax incentives, financing, or grants. A development project and any municipal action undertaken pursuant to the bill is to be in compliance with the "Municipal Land Use Law," P.L.1975, c.291 (C.40:55D-1 et seq.) and all other applicable municipal zoning ordinance requirements that do not conflict with the bill.