Jersey City is Moving Forward with Adopting an Inclusionary Zoning Ordinance. However, it will First Have to Resolve the Differences Between Two Competing Affordable Housing Proposals…
Jersey City is moving forward with adopting an inclusionary zoning ordinance. However, it will first have to resolve the differences between two competing affordable housing proposals.
Affordable Housing Plan to Include Inclusionary Zoning
The City Council of Jersey City recently voted to form a committee to reconcile the differences between inclusionary zoning ordinances proposed by Mayor Steve Fulop and Council President Rolando Lavarro. The final proposed ordinance is expected by August. “This clearly sends a message that the initiative and the effort will continue to move forward,” Lavarro said. “This is an important issue to get this right and make sure we have a robust debate on it so I look forward to doing that.”
As we have discussed in greater detail in prior articles, inclusionary zoning is an affordable housing tool that ties the creation of affordable housing to the creation of market-rate housing, with the goal of encouraging new residential developments to make a certain percentage of the housing units affordable to low- or moderate-income residents. In New Jersey, Newark and Hoboken already have inclusionary zoning requirements in place.
Jersey City’s Proposed Inclusionary Zoning Ordinances
Both inclusionary zone ordinances proposed in Jersey City would require developers seeking zoning changes to set aside 20 percent of their projects’ units as housing for low- and moderate-income residents. The affordable housing thresholds are also the same. Low income is defined as earning 50% or less of median gross household income, while the range for moderate income is between 50% and 80% of median gross household income.
There are, however, several key differences between the inclusionary zoning ordinances that must be resolved. The Fulop Administration’s ordinance (Ord. 19-056) provides exemptions for developments of 30 units or less; any project which is to be undertaken by the Jersey City Housing Authority; and rezoning initiated by the City as a result of a Master Plan Update or Amendment.
Meanwhile, Lavarro’s plan (Ord. 19-054) exempts the first ten housing units of substantial rehabilitation projects. It also exempts development under an adopted redevelopment plan subject to an executed redevelopment agreement between the City of Jersey City and a redeveloper, unless amended subsequently or the development has entered in a Payment In Lieu Of Taxes [PILOT] agreement with the City.
Another key difference is that Mayor Fulop’s ordinance includes several methods of relief for developers, including:
Off-Site Units in Lieu: The city may permit the creation of off-site affordable units for some or all the obligation, provided that certain conditions are satisfied. They include, among others, that the off-site affordable housing units are within the same Ward as the development.
Payment in Lieu: At the discretion of the approving authority, developers can also make a voluntary cash payment into the City of Jersey City’s Affordable Housing Trust Fund in lieu of constructing all or part of the affordable housing units required by the ordinance.
Community Benefits: A reduction in the mandatory on-site affordable housing requirement may also be considered relative to the value of community benefits proposed by the developer. Eligible community benefits would include the construction of a public facility, such as, but not limited to, public schools, public recreational facilities, government offices, fire stations, police stations, public parking garages, public transportation systems or facilities, roads and water infrastructure, etc.
Lavarro opposes providing developers with alternative ways to satisfy the affordable housing obligation and does not include any in his proposal. “We want to see real affordable housing built,” he said. “It’s too easy for developers to be able to obtain relief, whether it’s the payments, whether it’s building off-site, whether it’s community benefits,” he stated.
The members of the Scarinci Hollenbeck Land Use group have significant experience with development and redevelopment projects in Jersey City. We will continue to track the progress of the proposed ordinance and provide updates as they become available.
If you have any questions, please contact us
If you have any questions or if you would like to discuss the matter further, please contact me, Donald M. Pepe, or the Scarinci Hollenbeck attorney with whom you work, at 201-806-3364.
You Just Received a Federal Grand Jury Subpoena in New Jersey: Now What?
Receiving a federal grand jury subpoena is not something most businesses or individuals anticipate. While it can be concerning, a federal grand jury subpoena does not necessarily mean that you are being accused of wrongdoing. It does, however, mean that a federal criminal investigation is underway and that federal prosecutors believe you may possess information […]
Why Every Business Should Conduct an Annual Insurance Coverage Review
Most New Jersey business owners purchase insurance policies, file them away, and assume they are protected if a claim arises. Without a regular insurance coverage review, many companies discover gaps only after a lawsuit, cyberattack, property loss, or other significant event occurs. An annual insurance coverage review can help businesses identify potential risks, ensure their […]
Demand Letters & Cease and Desist Letters: When to Send One (and When Not To)
Businesses and individuals often encounter situations where another party breaches a contract, fails to pay a debt, or continues harmful conduct. In many such disputes, a precisely drafted demand letter or cease-and-desist letter serves as a powerful legal tool. It can frequently resolve the dispute and avoid litigation. While demand or cease-and-desist letters can resolve […]
Key provisions in your contracts, including those relating to indemnification, insurance, and defense, are essential to contract risk management. While sometimes considered “boilerplate,” these provisions play a pivotal role when determining which party is responsible for certain costs and liabilities. They must always be negotiated and drafted carefully. Indemnification Clauses Businesses should never overlook the […]
Portability of estate and gift tax enables a surviving spouse to inherit any unused portion of their deceased spouse’s federal estate and gift tax exemption. So, if one spouse doesn’t utilize their full exemption, the surviving spouse can effectively double their exemption amount with regard to estate tax liability. For married couples, portability offers a […]
Pet Trusts in New Jersey and New York: A Practical Estate Planning Tool
For many of us, pets are more than companions—they are members of the family. Yet they are often overlooked or inadequately provided for when it comes to estate planning. A pet trust offers a legally enforceable way to ensure that your animal continues to receive proper care if you become incapacitated or pass away. As […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
