COAH Unveils Revised Third Round Affordable Housing Rules

TRENTON, N.J. – The Council on Affordable Housing (COAH) today unveiled its revised third round rules and methodology at its monthly COAH Board meeting. The new rules continue to use a growth share approach which bases municipal affordable housing obligations on market-rate residential and non-residential growth.  The rules establish a need of 115,000 units of affordable housing through 2018 (up from 52,000 in the previous rules).

“Governor Corzine and I are dedicated to providing quality affordable housing for New Jersey residents,” said Department of Community Affairs Acting Commissioner Joseph Doria.  “COAH had many meetings with all interested stakeholders on this issue, from housing advocates and municipalities to the building community.  Their participation was vital and without their input, we could not have crafted these third round rules that will create more affordable housing in the state.”

The rules establish a new growth share ratio of 1 affordable unit among 5 units and 1 affordable unit for every 16 jobs (previous ratios were 1 among 9 and 1 for every 25 jobs).  Regional Contribution Agreement (RCA) amounts increase from $35,000 per unit to $67,000 to $80,000 per unit (depending upon region).  The rules return to the previous age-restricted cap of 25% of a municipality’s total obligation.  Further information on COAH’s revised rules is available at

The revisions are the result of a January 25, 2007 New Jersey Appellate Court decision where the Court affirmed many aspects of COAH’s third round rules, invalidated others, and remanded certain issues to COAH for rulemaking.  The Court gave a deadline of December 31, 2007 to adopt the new rules, however, COAH has filed a motion with the Court to extend the deadline for adoption until June 2008.  The motion, which is currently pending, was requested in order to allow the public an opportunity to comment on the rules. 

The revised rules will play a key role in Governor Corzine’s commitment to provide 100,000 units of affordable housing over ten years.  They will also be a factor in the determinations of DCA’s Housing Policy Task Force, which Commissioner Doria has assembled toexamine various aspects of affordable as well as low moderate and workforce priced housing in New Jersey and to devise an overall housing plan for the state. 

COAH, an affiliate of the New Jersey Department of Community Affairs, facilitates the production of sound, affordable housing for low and moderate income households by providing the most effective process to municipalities, housing providers, nonprofit and for profit developers to address a constitutional obligation within the framework of sound, comprehensive planning.