Page 29 - RE-NJ

bill after bill impose new mandates on
housing providers while policymakers
deride higher rents. At the same time,
housing advocates are imploring
the Legislature to impose additional
fees as a funding source for housing
initiatives. So, their solution to higher
rents is to increase the fees on those
providing rental housing. This fl awed
logic is a contributor to our housing
crisis today.
Then there is New Jersey’s municipal
response to housing policy — rent
control — which is the worst
“housing policy” of all. Rent control
distorts the housing market,
reduces supply and disincentivizes
reinvestment, which leads to
property deterioration, while it
also stagnates property values and
ultimately leads to a property tax
shift onto homeowners. That seems
to be the perfect example of a lose-
lose-lose “solution.”
When it comes to state and federal
budget priorities, housing always gets
short shrift. The federal government
allocates less than 1 percent of its
budget toward affordable housing
construction and rental assistance,
and New Jersey isn’t much better.
Furthermore, this isn’t a partisan
issue. A lack of funding at both the
state and federal levels of government
has been perpetuated for decades by
both parties. The fact is there is no
escaping that housing is expensive to
produce and maintain, and there will
always be low- and moderate-income
households that need assistance to
afford a place to live. The answer
is to reprioritize housing and rental
assistance funding in a meaningful
way.
Lastly, policymakers should recognize
that when it comes to providing
housing, government cannot do it
alone. Unless there is a massive
shift, housing is fi nanced, built and
maintained by the private sector.
Demonizing the industry is not
productive. Rather, decision makers
should look toward the private sector
as a partner with a shared goal.
By working together, government
and the private sector will increase
supply and improve the existing
housing stock. This will not only
start to address the supply-demand
imbalance in a meaningful way, but
it will also improve the quality of life
for tenants and reduce some of the
upward pressure on rents.
™ 27
LOOKING AHEAD
Next year, New Jersey will have
new leadership at the state level
of government, and when it comes
to housing policy, political party is
irrelevant. Whether Democrat or
Republican, the next governor must
focus on realistic solutions toward
meeting our housing needs. We
cannot continue down the same road
that has led us to housing shortages
and high prices.
Costly mandates, restrictive
zoning, burdensome regulations
and a poor working relationship
with the private sector will only
make our housing problems
persist or get worse. Instead,
we need a housing policy that
encourages development, promotes
reinvestment and balances the
needs of tenants, developers and
landlords alike. We must also
prioritize funding for affordable
housing and rental assistance.
By taking a more collaborative
approach, we will see increased
supply, higher-quality housing, a
leveling off of rents, assistance
for those in need and a continued
incentive toward a robust housing
market. That is a solution where
everyone wins. RE
David Brogan is the executive
director and CEO of the New Jersey
Apartment Association. Recognized
for his expertise in housing
policy, Brogan is a go-to source for
policymakers on legislation and
regulations that impact housing
providers.
Our success is the result
of good decisions, the
right timing and strong
partners. I trust the
construction advisors
at GWG to deliver
exceptional value from
our portfolio projects
and real estate assets.
— Steven Denholtz
Chairman,
Denholtz Properties
BUILDING Relationships
North Park at Bridgewater
Site Redevelopment > 73,000 sq. ft.
Freehold Distribution Center
Core and Shell > 101,000 sq. ft.
G WILLIAM GROUP, LLC
Construction Management & Consulting
www.GWGLLC.com
732-494-8370