On August 25, the Council on Affordable Housing (COAH) proposed sweeping changes to housing policy in this state. Under the old regulations, COAH assigned each municipality a number

Through a rigid and arbitrary process. The new methodology establishes a growth share model that reflects affording housing obligations based on growth. This major conceptual change embraced by COAH is to be applauded.

The League supports growth share since it will produce needed affordable housing without contributing to sprawl. In the past, housing obligation was artificially established, with little input or participation by the municipalities. The proposed regulations will require one affordable housing unit for every 10 residential units and one affordable housing unit for 30 jobs created in commercial development.

The League supports growth share since it will produce needed affordable housing without contributing to sprawl.

Under the old method, the assigned affordable housing obligation drove the market, and forced municipalities to accept growth without the needed infra­structure. The result is what the League terms the "multiplier effect." Increased housing places greater demands on schools, roads, sewer and water systems, etc. As a result, the increased costs of services would need to be offset by increases in property taxes.

Under growth share, municipalities will enter into a process in which their obligations are clear, the process streamlined and the affording housing obligation will be part of the planning process. The result will likely be more municipalities entering into the voluntary COAH process and, as a result, more affordable housing being built.

The regulations also increase the minimum amount paid by a sending municipality for each unit transferred pursuant to a regional contribution agreement (RCA), which allow one municipality to transfer a portion of its obligation to another. RCAs provide revenues to our cities and older suburbs for construction and revitalization of housing.

They serve to avoid sprawl. The concept is consistent with smart growth and the State Plan.

The League, which represents both the sending and receiving municipalities in RCA agreements, can support this concept since the developer's fees are also to be increased. In this way, these additional costs to sending municipalities will be offset by development fees and not by taxpayers.

Additionally, the regulations propose the creation of a statewide bank for RCAs, so that a municipality does not necessarily have to negotiate with another municipality for an RCA agreement. Instead, the municipality would have the option to transfer a portion of its fair share obligation to a statewide bank administered by the Department of Community Affairs.

The League also supports the expansion of the maximum percentage of a municipal housing obligation that can be achieved through housing for senior citizens. This is a common sense proposal in response to increased need for housing for low and moderate­income senior citizens.

In the past, affordable housing obligations drove the market and contributed to sprawl. But this does

not have to be the case. But, poor public policy to create housing has, in fact, contributed to sprawl.

The League commends COAH for taking this bold action. The criticism of the regulations has begun already. The goal for the critics is clear: maintain the status quo, contribute to sprawl and defend housing policy which is a demonstrated failure.

As the League continues to evaluate these regulations, our goals are far simpler: streamline the process and make the COAH process more inviting for municipalities, which, in turn, will result in less sprawl and more affordable housing.