By Joshua Burd
Developers are cautiously optimistic about new legislation to streamline affordable housing production in New Jersey, but it’s far from their only public policy objective in 2024.
Chief among them is a law that was enacted last year, drawing praise from the New Jersey Builders Association and other groups, allowing building owners to hire third-party, private-sector professionals to obtain faster code inspections. Proponents of the bill are now eagerly awaiting its implementation by the state Department of Community Affairs, which could begin this spring, touting its promise to expedite construction permitting and create cost-savings for builders.
“We’re certainly excited about the regulatory reform effort that we saw when it comes to building codes, and we’re excited about seeing that implemented and our members realizing the relief that it promises them,” said Jeff Kolakowski, NJBA’s chief executive. “We’re also excited about other endeavors … such as looking at the plan review process and bringing additional reforms to that space.”
He added: “There are a host of other bills introduced in the Legislature that I think highlight that New Jersey is starting to get serious about looking at housing affordability and starting to really address its undersupply issue. We’ve seen significant and bold steps taken by a lot of states and, truth be told, I think we’re behind the curve on that. But we’re starting to see more focus on it and more and more initiatives looking to address our systemic issues that really suppress construction and hold us back.”
NJBA will host the annual Atlantic Builders Convention this week at Hard Rock Hotel & Casino Atlantic City, where it’s sure to update members on its priorities in Trenton. That could include the push to allow so-called accessory dwelling units — or smaller, independent structures that are built alongside single-family homes — which could benefit from a pilot program in Gov. Phil Murphy’s proposed fiscal year 2025 budget.
Deb Tantleff, NJBA’s board chair, said the association was pleased to hear the governor’s “interest in allocating dollars” for the concept, which would come by way of $10 million in funding for municipalities and individual homeowners. But she and Kolakowski said there is still a need for policies that would allow local officials to create zoning for the accessory units, which could include a small home in the backyard or an apartment over the garage.
Tantleff, who was sworn in as chair in mid-January, said the industry also remains focused on reducing parking mandates for new construction. A recent study by the Rutgers Center for Real Estate has reinforced that belief, finding that parking demand at multifamily properties in New Jersey is well below what the state requires, highlighting an opportunity to reduce construction costs and soften the environmental impact of new development.
“Parking reform is a priority of interest to me,” said Tantleff, the founding principal of Jersey City-based TANTUM Real Estate, who led the Rutgers study as a member of the center’s executive committee. “I think it creates unnecessary hurdles in redevelopment applications, but the underlying reason is because it is an unnecessary expense, and it is contributing to our housing affordability crisis.”
Meantime, she pointed to the need for better, more proactive collaboration with the state’s utility companies as a means of addressing “one of our biggest underlying issues in being able to deliver projects.” It can take two to three years to secure service for a new development, she said, citing the equipment delays and supply chain challenges that were laid bare by the pandemic.
The fact that delays persist today also speaks of “institutional inefficiencies” and design challenges, Tantleff said.
“We’re spending an obscene amount of time trying to just get the lights turned on, which is resulting in additional delays on projects, additional costs that’s being spent on temporary heat and temporary measures just to keep projects running,” she said. “It’s delaying our ability to lease and sell homes to the end users.”
Importantly, Tantleff said she hopes to tackle public policy with the help of other stakeholder groups in the real estate and planning spheres. That’s central to one of her initiatives as chair, she said, seeking to “leverage the depth of relationships and collaboration that exists with other trade and advocacy organizations,” such as the Regional Plan Association, Downtown New Jersey and the American Planning Association’s New Jersey chapter.
“That holistic cohesion, I think, becomes really important in trying to move the policy initiatives forward, because we recognize that we are a critical and large voice that represents a really significant part of our economy,” she said. “But we recognize that the issues that we touch do not only affect us, so the more collaboration that we can have from likeminded agencies, it’s going to result in an impact to a much greater network beyond just our membership.”
