Towns would also have the option of dedicating 20 percent of new development to residents earning up to 150 percent of the regional median income. Residential developers looking to avoid the quota could pay a penalty equal to 3.5 percent of development costs, which the town must then use towards future affordable housing projects. The law would also abolish the state Council on Affordable Housing.
Governor Chris Christie has vowed to veto the legislation if it passes, taking issue with another fee targeting commercial developers, writes Matt Friedman:
"While Christie supports abolishing the council, he opposes the bill's 2.5 percent fee on commercial development to help pay for affordable housing. The bill temporarily does away with the fee - which is currently in effect because a moratorium on it expired in July - but phases it back over the course of five years."