COHA Affordable Housing

Here's something about COAH you may not know. It is expensive.

A family I know is selling a subdivided building lot next door to where they live. Because it is a fairly new single lot subdivision (within the last 2 years) either the sellers or the purchaser of the property is subject to the new COAH fees. They, as sellers, have decided to pay the estimated COAH fees when the property is sold. The property is approved for up to a four bedroom home. They had to go to their township to have the fee calculated. The fee they are paying is approximately $17,000. They are required to pay (buyer or seller) $17,000 to sell or buy a $100,000 building lot. If that is not being over taxed I don't know what is.

I contacted the specific township in Sussex County and spoke to the person who estimated the fees for this particular lot. She told me that all estimates are just that, estimates. The rules from the state are written in such a vague way that the initial calculations are left to interpretation. Each town may read the rules differently. She said the fee is based on the cost estimate to build a specific size home. It is not on the lot but it is on the home cost. The COHA fee is estimated at the time of application to build a specific size home using its cost to construct.

I understand that Warren County calculates the charges differently then Sussex. I have spoken to a few builders who have sold some homes in Warren County and they said that there were charges over $40,000 per new home going to COHA fees at each closing.

Where is all of the money levied by the State of New Jersey going? How much money is needed to build affordable housing? Why are only those selling lots or building homes being hit with these fees? Why should they bear the brunt of the costs? It sure doesn't sound like it is affordable to the middle class in New Jersey.

I'm sure I don't have all the information but who can a future new home owner believe? Is there any one that is willing to put in writing how the COAH fees are calculated? Where is all the money that has been collected going? Is it sitting in a specific account waiting for low income housing to be built in specific towns?