Reviewing the New Affordable Housing Law

NJ Affordable Housing Law A Construction Liability The Supreme Court recently mandated New Jersey to provide more affordable housing throughout the state. Experts hope this shift marks the new era for the working class- a solution to a problem that has remained stagnant since 1999. With an anticipated influx of construction work to come in the following months, equip your firm with NJ Construction Liability Insurance to protect against potential risks you might encounter.

July 8th marked the day that local towns were legally required to submit plans of affordable housing to the Superior Court in lieu of being sued by builders. Towns are required to demonstrate how many affordable units they will build and provide information on legal zones that need to be created, as well. This development will increase the rental units as well as those for sale.

This law was sparked by the recent study which proved that one in three New Jersey renters spends at least half of their monthly income on rental fees, according to Enterprise Community Partners. This is the second highest rate in the country which has caused many residents to be forced into working two jobs just to survive.

This issue is being tackled by the builders of New Jersey. Attorney Gary Forshner of Stark & Stark provided some insight on the history and solution of this problem when he stated the issue dates back to 1975 when the Mount Laurel decision was made. This decision required the opportunity for builders to develop a range of housing options for residents with low to moderate income. For example, some Ocean County housing costs up to 80% of the median household income, which resulted in the Fair Housing Act and the implementation of the Council on Affordable Housing, or COAH to regulate prices.

Forshner reassured “More than 300 towns that participated in the COAH system have until Wednesday to submit what’s called a declaratory judgment action to Superior Court judges in hopes that they get temporary immunity from builders’ lawsuits while they develop an affordable housing plan that will pass muster with the courts. Towns have up to five months to submit an affordable housing plan for court approval.”

In the meantime, construction companies are gearing up to accommodate this long needed development. Provident Protection Plus Insurance Agency can help to safeguard your business and its practices. With over 65 years of experience providing specialized insurance solutions, we have the ability to balance quality coverage with competitive pricing. To learn more about our products and services, please contact our specialists today at (888) 990-0526.