In early October, HMFA will be putting on the Governor’s Conference on Housing. This is usually a three day affair in Atlantic City, and it gives businesses and agencies such as Project Freedom the opportunity to see the latest products and services in the housing industry, but to also attend the various learning seminars on housing management and financing. It is also an excellent opportunity to meet face to face with HMFA and DCA officials, staff and other agencies, that impact affordable housing in New Jersey.
This year I have been asked to be part of a panel on Supportive Housing in New Jersey, which I have done in the past. This kind of workshop is very timely now since the affordable housing industry has recently faced some significant changes due to the Federal Tax Reform Act passed last year. That act significantly de-valued the price for Tax Credits by lowering the corporate tax rate from 35 % down to about 15 %. The net effect was to give a tax break to most corporations, who previously would invest in Tax Credits as a way to reduce their federal tax burden. Since taking effect last year, this new law has significantly lowered the price for tax credits ultimately reducing the total paid by as much as $ 500,000.
For Project Freedom, that reduction in total price paid put a big hole in our financing for our Gibbsboro project. Our investor syndicator did help by scrambling to find some other funds such as the penalty money paid to the Justice Department for claims against some of the largest banks. However, that money was limited and did not provide all the needed funding for this project. We had to do extensive value engineering to our buildings, that is to say, to give up some amenities, so as to bring the cost of the project more in line with our budget or available funds. Now under construction, we are hoping that we can save all of our contingency money so as to put back some of those enhancements.
Couple that issue with the fact that the State of New Jersey’s Budget continues to run a deficit with expected revenues to fall short of the expected spending. In addition, our new governor, Phil Murphy continues to want to increase spending for other social programs without really knowing that the funds will be there for their expense.
Finally, although many towns have settled in court on their Affordable Housing plans for the third Round, there are a number of new proposed bills in the legislature that will impact getting new affordable housing completed. Without giving the bill numbers here, one bill was to have every proposed project do an extensive, and costly, feasibility study before moving ahead. Another bill wanting to eliminate the PILOT programs that reduce the real estate taxes paid by these affordable housing projects. A third bill would require using Davis Bacon Wage scales to all construction projects that are funded with any federal or State funds. This alone provision would increase the cost of the projects by 30%, and thereby reduce the available funds for more projects.
So, with the fact that the Towns have had to go through the courts in order to get approval of their housing plans, many now are asking for the return of COAH. Funny, what goes around comes around.
This month marks seventeen years since the attacks of September 11th. 
Disabled advocacy groups are calling on Starbucks to reverse its phase-out of plastic straws from its stores, highlighting the controversy of the decision.
This year will be the 23rd time in my life that I cast a vote for a member of Congress. I remember back in 1972 being forced to vote two weeks ahead of time by absentee ballot because my polling place was not accessible. I remember in 1992 being challenged at the poll because of disability, and I remember the empowerment I felt by calling a state hotline while at the poll to “fix” the situation to my satisfaction.
