NJAA URGES GOVERNOR TO VETO RETRO-ACTIVE SENIOR RENT CONTROL BILL
JOB LOSS & PROPERTY TAX IMPACTS RISK STALLING ECONOMIC RECOVERY
Monroe Twp., NJ – July 1, 2013– Thursday’s narrow passage of A-2737/S-897 by the Legislature raised immediate requests by housing-related organizations led by the NJAA for a veto of a bill that will make New Jersey the only state in the nation to regulate prices on newly constructed apartment buildings.
“It took six years and numerous attempts by the Senate sponsor to muscle this bill through the Legislature, but in an election year good policy often suffers at the hands of political expediency,” says Conor Fennessy, NJAA’s Vice President of Government Affairs. “This was a highly divisive, high partisan vote. We are hopeful that Governor Christie will see through the cloak of ‘protecting seniors’ the sponsor has sought to hide behind and see this bill for what it really is – a job killer that will actually make housing more expensive for seniors.”
“The Legislature confused the disease with the antidote. An exemption from rent control for newly constructed buildings cures the lack of senior housing and promotes job creation. Now developers have one less option of what type of housing to create – and municipalities will lose their capacity to keep their empty nesters in place while creating new ratables that don’t add to their school burden.”
Across New Jersey, this decades old policy to exempt new rental housing from local rent controls has been essential to the economic development we have seen in our urban centers. From the “Gold Coast” in Hoboken, Port Imperial, and Jersey City to market-rate projects in Newark, New Brunswick, Long Branch, Trenton, and Camden, scores of buildings that are now home to thousands of New Jersey’s working families would not have been possible without this commitment from the state to safeguard new construction from the well-known ills of local rent control. NJAA was joined in requesting a veto by the New Jersey Builders Association.
“Not only will the bill fail to accomplish its objective of controlling rental housing costs for seniors who are 55 or older, but it will chill job recovery in the building trades by halting construction of new senior buildings and burden cash-strapped municipalities by eliminating one of the most appealing options for new residential development - housing for seniors.”
Founded in 1986, the New Jersey Apartment Association (NJAA) is a statewide organization of apartment owners, managers, builders, developers and those involved in allied industries. The Association is designed to advance and protect the welfare of the apartment industry in New Jersey. NJAA represents managers and owners of more than 170,000 rental units throughout the state as rental housing is home to over one-third of all New Jersey families. NJAA also serves its membership’s interest on a national level through its affiliation with the National Apartment Association (NAA). For more information about apartment home living in New Jersey along with NJAA events and activities visit www.njaa.com