On December 17, 2007, the New Jersey Council on Affordable Housing (COAH) voted to propose its revised third round regulations resulting from the Appellate Division Decision on January 25, 2007. The rules were published in the January 22, 2008 New Jersey Register. COAH held five public hearings and received over 4,800 comments from over 600 individuals and organizations. On May 6, 2008, COAH voted to adopt the rules, with minor clarifications, as N.J.A.C. 5:96 (Procedural Rules) and N.J.A.C. 5:97 (Substantive Rules). The third round rules adopted effective December 20, 2004 (N.J.A.C. 5:94 and N.J.A.C. 5:95) will remain in effect for the three municipalities certified prior to January 25, 2007. The adopted rules became effective when published in the NJ Register on June 2, 2008.

Full text of the adopted rules and comments and responses are available on the right, as downloaded from the NJ Register.

The rules update the affordable housing requirement for municipalities based on the latest available data. Below is a summary of the major changes:

* Continuation of the growth share approach, with affordable housing need measured as a percentage of residential and non-residential growth from 2004 to 2018.

* New ratios are 1 affordable unit among 5 units and 1 affordable unit for every 16 jobs (previously ratios were 1 among 9 units and 1 for every 25 jobs)

* New affordable housing need for the state is 115,000 affordable units (an increase from 52,000 units in previous adoption). Establishes payment in lieu standards (cost of constructing an affordable unit) averaging $161,000 per affordable unit

* Expanded compliance options for municipalities, including bonus credits for supportive and special needs housing, new credit for affordable housing in redevelopment areas, and optional plan phasing based on economic feasibility.

* Returns to the previous age-restricted cap of 25% of total obligation