Sen. Troy Singleton said the bills that advanced Monday would spur economic development and encourage construction of more housing. (Dana DiFilippo | New Jersey Monitor)
A Senate panel approved a raft of bills Monday meant to spur real estate development, though municipal officials warned the package would reduce local control of housing policy.
The bills approved by the Senate Community and Urban Affairs Committee would allow underused or vacant commercial properties to be redeveloped for mixed uses while limiting local officials’ ability to intervene, create a $25 million grant program to jumpstart development of transit villages, and cut parking requirements for certain residential developments by up to 50%, depending on their proximity to transit.
“The goal is to transform aspects of our state and encourage development that not only spurs economic development but also looks at trying to create more housing,” said Sen. Troy Singleton (D-Burlington), the committee’s chair and the bills’ sponsor.
Supporters said the redevelopment measure — targeted at strip malls and office parks that have seen occupancy fall as a result of online shopping and a post-pandemic surge in remote work — would help fill a roughly 200,000-unit shortfall in affordable housing.
The plan drew resistance from the New Jersey League of Municipalities, which said builders can already redevelop blighted commercial properties without state intervention.
“We view it as an unnecessary preemption of local authority. We believe it undermines the local planning process, which is designed to facilitate grassroots engagement with the community,” said Mike Cerra, executive director of the New Jersey League of Municipalities.
He challenged as a myth the bill’s declaration that “outdated, rigid municipal zoning regulations” often separate residential and commercial uses.
The measure would require municipal officials to approve applications to convert or redevelop underused properties so long as the project complies with a town’s existing mixed-use zoning requirements. The bill would substitute its own mixed-use zoning rules if the municipality has none.
Amendments made Monday removed language that would have sunset the bill’s provisions two years after they take effect.
“This is no longer a temporary effort in response to a market turndown or post-COVID. This is permanent, and again, we see this permanent preemption of local, duly elected and appointed officials,” Cerra said.
To be eligible for redevelopment under the bill, a property must be an office park of at least 50,000 square feet or a retail center of no less than 15,000 square feet. In both cases, the commercial space must have a vacancy rate of at least 25% in the preceding 18 months or have faced an economic downturn in the three years preceding an application.
The bill’s supporters argued allowing the redevelopment of stranded properties would reduce costs by allowing builders to use existing structures and infrastructure while boosting municipalities’ property tax bases.
“The law just makes good common sense,” said Al-Tariq Witcher with Fair Share Housing Center, which monitors compliance with housing laws.
The bill would require at least 20% of units in such developments to be set aside for affordable housing.
The parking bill would entirely eliminate off-street parking requirements within half a mile of rail stations and halve the number of parking spaces needed within a half-mile of ferry terminals, NJ Transit bus stations, or in proximity to multiple bus routes. Required parking would be reduced by 30% for areas between 0.5 miles and 1 mile away from a ferry terminal, bus station, or multiple bus routes.
Erin Knoedler with the New Jersey League of Municipalities said those parking requirements can already be reduced with variances. Others said local control has failed to align parking policy with the state’s housing needs.
“We already have a permissive system, and if it was working, we wouldn’t be having this conversation today,” said Zoe Baldwin with nonprofit planning group the Regional Plan Association.
We see this permanent preemption of local, duly elected and appointed officials.
– Mike Cerra, executive director of the New Jersey League of Municipalities
Lawmakers approved a third bill that would create a planning advocacy office within the State Department to dispense grants to build high-density housing — 50 or 25 units per acre, depending on proximity to transit. The bill would make $25 million in grants available for such construction, with priority for developments where at least 30% of units are affordable.
“That money is what can make this work for towns because they can create transit districts they can be proud of,” said Chris Sturm, land use policy director at New Jersey Future.
None of the bills have advanced in the Assembly since their introduction in January.
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