City mayors cite benefits of suburban subsidies

Panel demands funds to replace affordable-housing buyouts

 

By GREGORY J. VOLPE, thnt.com Online, June 9, 2007

 

TRENTON — A group of urban mayors issued several demands Thursday before they could support legislation eliminating the practice in which richer suburban communities pay poorer cities to take some of their affordable-housing obligation.

The mayors said the regional-contribution agreements, or RCAs, have done wonders for redeveloping their cities and giving people the opportunity to own a home.  Critics say the arrangements go against the notion of inclusive affordable housing, sending affordable housing to cities and preventing the poor from living in the suburbs.

Such pacts would be eliminated under legislation pushed by Assembly Speaker Joseph J. Roberts Jr., D-Camden, but the mayors said several conditions must be met in order to ensure they and their constituents still reap the benefits they get under RCAs.

Among the mayors' demands were:

Giving distressed cities funding to attract moderate- and market-income housing

Constitutionally dedicating a new real-estate-transfer tax to subsidize construction of affordable housing in cities

Offsetting school costs and using a housing tax credit to spur affordable housing in the suburbs

Creating a commission to address affordable-housing issues.

Trenton Mayor Douglas Palmer, past president of the New Jersey Urban Mayors Association, said of the regional-contribution agreements:  "We know that they are flawed, but they still comprise the only technique urban cities now have to help working families buy homes.  The elimination of RCAs can only be considered in the context of a comprehensive discussion of the state of affordable housing."

In a statement, Roberts said work on the legislation will continue through the fall.

During the 2005 gubernatorial campaign, Gov. Jon S. Corzine said he opposed RCAs.

Gregory J. Volpe:  gvolpe@gannett.com

Posted June 8, 2007

 

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