Dear Editor:
The state is walking a tight rope in a desperate effort to balance the preservation of our lifestyle with the need to accommodate more than one million new residents in the next 15 to 20 years. We commend Governor James McGreevey and his staff for tackling this issue and for raising the level of discussion. For a long time, we have urged dialogue and compromise, and we see that beginning to happen.
Governor McGreevey last January talked about this delicate balance in his State of the State address. Since then, the state has taken several steps out on the high wire and with each of those steps, has encouraged more discussion. The most recent changes in what is known as the Big Map demonstrates that the governor is listening to all sides of the debate, although there still is a lot of discussion and work to be done.
Access to affordable, high quality homes in New Jersey is an important issue that is at the heart of the discussion. Each day, the basic laws of surplus and demand cause the dream of home ownership in the Garden State to move further out of reach for many families. So what can be done about this?
As New Jersey’s largest homebuilder, we agree that legislation is needed that will make urban redevelopment easier. However, we must be prepared to build intelligently in suburban and rural areas. This is necessary to accommodate the 25,000 new homes that must be built annually over the next two decades to handle the imminent influx of new residents.
Second, we must look at the cost of regulation. A study by the state says the inefficiencies of the regulatory machine add $40,000 to $60,000 to the cost of a home. To build a community, developers must acquire more than 150 permits from five levels of government. These regulatory excesses have resulted in the average home prices of about $345,000. Regional regulations, also discussed by the governor in his speech, could lessen that burden if the regional planning boards did impose yet another layer on top of what already exists.
Next, the governor wants to preserve more open space. While the preservation of open space and successful farms is important, using tax dollars to create an often-disconnected patchwork of land is a foolish way to spend money.
Impact fees, or fair-share fees, also were mentioned. Developers don’t mind paying their fair share, but towns should not use impact fees to make up for short-sighted planning. What’s needed instead is a well thought-out formula that is applied fairly to all builders to help keep homes affordable.
In the end, let’s not forget that this discussion is about real people. New Jersey is the country’s sixth most expensive housing market, where one in every five New Jersey families pays more than a third of its total income for housing. We must find ways to make raising a family in New Jersey more affordable. We must continue the dialogue and compromise so we can find ways to provide quality homes for all current and further New Jersey residents.
Joe Riggs
Northeast Region President
K. Hovnanian Companies