June 15, 2012
Re: S-2011 & A-2950, COAH Trust Fund Extension
On Monday, June 18 the Senate Budget and Appropriations Committee will consider S-2950. This bill was previously approved by the Senate Community and Urban Affairs Committee on June 7. S-2011 will provide a two-year extension for the commitment of the municipal housing trust fund dollars. The League supports the bill.
The Assembly companion, A-2950, was approved by the Assembly Housing and Local Government Committee and awaits a vote by the full Assembly.
According to the Department of Community Affairs, approximately $161 million in local trust funds are at risk of forfeiture in July unless committed by contract. Specifically, A-2950 and S-2011 will:
1. Extend the deadline to commit trust fund dollars from four years from the date of collection to six years. Thus, dollars subject to forfeiture to the State this July would be protected until July 2014; and
2. Provide that any dollars forfeited after six years will either be transferred to the State Affordable Housing Trust Fund, or to the County if it has established a “Homelessness Trust Fund pursuant to NJSA 52:27D-287(e) or if it serves an “urban county pursuant to section 102(a)(6) of the “Housing and Community
Development Act of 1974.” This provision allows for the trust fund dollars to be retained and used locally.
If your municipality is at risk of forfeiting its housing trust fund dollars, we urge to reach out to your State legislators and ask them to support A-2950 and S-2011.
We would also urge you, if you have not already, to reach out to the Governor’s Office to express your support as well. You can receive a sample letter at the following links:
PDF – http://www.njslom.org/documents/COAH-Letter-to-Governor-Christie.pdf
WORD - http://www.njslom.org/documents/COAH-Letter-to-Governor-Christie.doc
For more, please see our Dear Mayor letter of June 12 and June 8. For questions and comments on these bills, please contact Mike Cerra at email@example.com or at (609) 695-3481 x120.
Very truly yours,
William G. Dressel, Jr.