Dear Mayor:

Yesterday on behalf of the Urban Mayors Association, Trenton Mayor Doug Palmer was joined by Irvington Mayor Wayne Smith, the President of the Urban Mayors Association, East Orange Mayor and 2nd Vice President of the League Robert Bowser, Camden Mayor Gwendolyn Faison and Orange Mayor and Assemblyman Mims Hackett in presenting a series of potential amendments to A-3857, which calls for the elimination of regional contribution agreements (RCAs.)  

To be clear, the Urban Mayors Association (UMA) is not calling for the elimination of RCAs, and joins the League in opposition to A-3857.  This was stated explicitly at their press conference. Instead, what the UMA is putting forth is a thoughtful response to the legislation, outlining what would need to be done before they could consider the elimination of an affordable housing compliance technique that has been successfully used to promote housing across the state. 

In summary, the UMA’s proposal calls for the following:

• The creation of two funds funded by a percentage of real estate transfer fees.  One fund, “the urban fund” would replace the revenues generated by RCA agreements.  The second would send economic relief to suburban and rural areas as an incentive to accommodate affordable housing.  This second fund is intended to offset school costs associated with inclusionary development.  
• Most importantly, the UMA called for the above funding to be constitutionally dedicated, so not to be subject to the annual appropriations process. 
• Additional funding from the real estate transfer fees to the Balanced Housing program administered by the Department of Community Affairs.
• The creation of a Blue Ribbon Commission on Affordable Housing to examine this issue, and, more importantly, provide a comprehensive review of the Fair Housing Act. 

The League was provided a copy of the proposal developed by Mayor Palmer, and it was an agenda item for our own special committee last week.  At the direction of the League President, the League created its own “blue ribbon” task force to advise our legislative committee and our board regarding state housing policy.  Our committee is comprised of mayors from across the state, representing all types of our communities. Our committee reviewed the proposal put forth by the UMA, and agreed that it was a worthy first step in a policy discussion. The League committee believed that the proposal should be further discussed, but the suburban component needs to be further developed. 

Furthermore, we commend the Urban Mayors Association and in particular Trenton Mayor Doug Palmer and Irvington Mayor Wayne Smith for advancing a proposal that calls for a thorough re-examination of the Fair Housing Act. In particular, we believe the creation of a “blue ribbon” commission could be the first step in recrafting housing policy in the State.  The constitutional dedication is also an excellent proposal, which would mean all our communities could rely on a sustainable funding source. 

To simply eliminate RCA agreements would not benefit our communities and would hinder the construction of affordable housing at a critical time.  Instead, we must consider what this policy means in the terms of a comprehensive discussion of housing policy in this state. A comprehensive review of housing policy must consider how changes will impact all communities, urban, suburban and rural, in our state. The Urban Mayors’ outline of what needs to be done even before consideration of the elimination of RCAs demonstrates this and represents what may be a first-step in the development of what may be a viable alternative to current housing policy.    

According to press accounts, Assembly Speaker Joseph Roberts, who sponsors the legislation, has indicated that hearings on A-3857 may be held throughout the rest of year, but does not anticipate legislative action before next year.  The Assembly Speaker has also been very clear that he intends to proceed in a thoughtful way, and that the League will be at the table at any discussions on this matter.

The June 6 edition of the Star-Ledger and the June 7 edition of the Trenton Times both provide excellent summaries of Urban Mayors’ proposal and their press event.  (The electronic versions of this letter provide links to both.)

For additional information, please see our Dear Mayor of December 21, 2006. Questions regarding the legislation and developments can be directed to Mike Cerra at mcerra@njslom.com or at 609-695-3481 x120.

Thank you.

Very truly yours,

                                                                        William G. Dressel, Jr.
                                                                        Executive Director