Our State House In Focus

Multi-Family Legislative & Regulatory Policy Priorities

Nicholas J. Kikis

Director of Legislative & Regulatory AffairsNew Jersey Apartment Association

Headquarters Legislative Office104 Interchange Plaza 172 West State StreetMonroe Twp., NJ Trenton, NJ

www.njaa.com

Multi-Family Legislative & Regulatory Policy Priorities

Our State House In Focus

NJAA Government Affairs: The Recognized Voice of Multi-Family Housing

Strategic Government Affairs program stands on three primary pillars:

– Professional, in-house lobbying staff focused on legislative, policy and regulatory issues affecting multi-family rental housing;

– Dedicated members at the grassroots level;

– Well-funded political action committee: NJAA PAC.

Measuring the Economic Impact of Multi-Family Rental Housing

The apartment industry invests significant capital to support operations, spending:•$4.2 billion on its annual ongoing operations, and

•$410.6 million annually on capital expenditures on renovations to existing structures (not including new construction activity).

This spending contributes to our economy and is:

•Responsible for more than 44,000 jobs;•Contributes $1.0 billion annually in revenues, and•Contributes $140 million annually to state tax revenues.•Overall Impact to State GDP of $5.7 billion.

Source: NJ Apartment Industry Economic Impact Analysis & Sector Profile, June 2012 – Edward J. Bloustein School of Planning & Public Policy, Rutgers University

Multifamily Housing in New Jersey

• Measuring the Size of the Rental Industry– Small Rentals 390,000

– Multi-Family (3+) 616,000

– Multifamily Apartments (5+) 508,000

– Units in large bldgs. (20+ units) 254,000

• One-in-three New Jersey households rent their homes (33.4%)

Looking Back: End of 2012/13 Legislative Session

Enacted Legislation

•NJ Economic Opportunity Act of 2013 (“E.O. 13”)

•Remedial Investigation (RI) Delay Bill

•Tenant Recovery of Attorney’s Fees (S-2018)

•Emergency Operation Plans for Senior Housing

Vetoed Bills

•Standards for Mold Cleanup & Mold Remediation Contractors

•Retroactive Imposition of Rent Control on Exempt New Construction of Senior (55+) Rental Housing

Bills on the Horizon

Assembly

▪A-1578 – Establishes L/T Rules Governing the Eradiation of Bedbugs

▪A-1007 – Establishes Standards for Mold Cleanup; Mold Contractors

▪A-2479 – Establishes Standards Setting Minimum Elevator-Sizes (NJAA seeking amendment to conform w/ national model codes)

▪A-1726 – Establishes Statutory Scheme to Speed Adoption of Revisions to FEMA Flood Mapping

Senate

▪S-928 -- "Economic Opportunity Act of 2014, Part I”

▪S-941 – Makes Charitable Payments a Defense in Summary Dispossess Process

Issues on the Horizon

• FY 2015 New Jersey State Budget– The current blueprint appropriates $34.4 billion

(4.4% larger than the enacted FY '14 Budget).

– Key funding priorities: Lead Hazard Control Assistance Fund, State Rental Assistance Program (SRAP), agency budgets, DCA/DEP/HMFA, municipal funding.

– Governor calling for additional measures to curb pension and benefits costs.

– Deadline for passage is midnight on 7/1/14

Issues on the Horizon (Cont’d)

• Council on Affordable Housing (COAH)– Supreme Court Provided Deadline of 2/26;

Administration Requested Extension to 5/1

– Decision Not Meant to Impose “Constitutional Straightjacket;” Legislation Could Alter Affordable Housing Policy

– Advocates asking courts to install special master to issue necessary regulations

Hurricane Sandy Recovery & Relief

• Community Development Block Grant Disaster Recovery (CDBG-DR) assistance

– First Tranche: $1.8 billion grant ($1.3 allocated to housing)

– Second Tranche: $1.5 billion ($735 million allocated to housing)

• Key Rental Housing Programs– Fund for the Restoration of Multifamily Housing (HMFA)

– Small Rental Repair Program (DCA)

– Landlord Incentive Program (DCA)

– Proposal: Provide Targeted Tenant-Based Assistance

• Public Comment on Action Plan Closed 3/5/14

Looking Forward

• Legislative– “Water Tax”

– Gas Tax

– Open Space Preservation

– Statewide “Ban the Box”

– Generators & Emergency Power

• Regulatory– Progressing Red Tape Reforms

– State Plan

– Possible Turnover in Cabinet

Getting Engaged: You Are Either at the Table or on the Menu

• Professional Representation: NJAA provides opportunities to stay up-do-date and involved in our legislative and regulatory activities; NMHC/NAA Joint Legislative Program provides representation in Washington DC.

• Grassroots Involvement: Develop relationships with legislative and congressional representatives.

• NJAA Site Visit Program: Invite Legislators to visit your properties and see operations firsthand.

Nicholas J. Kikis

Director of Legislative & Regulatory AffairsNew Jersey Apartment Association

Headquarters Legislative Office104 Interchange Plaza 172 West State StreetMonroe Twp., NJ Trenton, NJ

www.njaa.com

Multi-Family Legislative & Regulatory Policy Priorities

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