NJAA Presentation

1. Our State House In Focus
Multi-Family Legislative &
Regulatory Policy Priorities

2. Our State House In Focus
Multi-Family Legislative &
Regulatory Policy Priorities
Nicholas J. Kikis
Director of Legislative & Regulatory Affairs
New Jersey Apartment Association
Headquarters
104 Interchange Plaza
Monroe Twp., NJ
Legislative Office
172 West State Street
Trenton, NJ
www.njaa.com

3. 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.

4. 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

5. 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%)

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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.

13. Comments/Questions?
Multi-Family Legislative &
Regulatory Policy Priorities
Nicholas J. Kikis
Director of Legislative & Regulatory Affairs
New Jersey Apartment Association
Headquarters
104 Interchange Plaza
Monroe Twp., NJ
Legislative Office
172 West State Street
Trenton, NJ
www.njaa.com