During yesterday’s Senate Budget and Appropriations Committee hearing, Senator Steve Oroho (R-24) questioned two of New Jersey’s leading economic experts, Dr. James Hughes, dean of Rutgers University’s Edward J. Bloustein School of Planning and Public Policy and Dr. Joseph Seneca, a Rutgers Professor and former chair of the New Jersey Council of Economic Advisors, about New Jersey’s economic future and the impact COAH will have on the state. Their exchange is below:
Oroho: Do you have a point of view of a recently passed regulation that charges a 2.5% fee on any new development?
Hughes: Are you speaking of the COAH regulations?
Oroho: Yes.
Hughes: Well, for all the noble goals of COAH and affordable housing, which has been and will remain a key issue for New Jersey, the effect of that (COAH) is to raise a tax on investment and in difficult economic times it is another deterrent to making that positive investment decision for New Jersey.
Oroho: We all want affordable housing without a doubt, but it (COAH) will create another headwind in trying to create private sector jobs?
Hughes: It (COAH) raises the cost of private sector investment.
The recently enacted Coalition on Affordable Housing (COAH) law that was passed and signed into law last summer includes a new 2.5 percent fee on all commercial development, including agriculture development. The law also imposes the 2.5 percent fee on economic development projects that were approved and started prior to the law’s effective date of July 17, 2008, but had not yet received their certificate of occupancy (CO). Senator Oroho has been a leading voice in Trenton for private sector job growth and yesterday’s testimony further demonstrates that this COAH tax only acts as a disincentive to create jobs.
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January 7, 2009
