New projects in Jersey City violate the affordable housing law

This year, Jersey City has enacted the Affordable Housing Law within its legislation. This new regulation mandates that every new housing project developed within the city area must allocate 13% of its construction for residents with low and very low incomes to have the ability to obtain their own housing.

The legislative measure aims to address the crisis caused by housing affordability and to offer its residents better and more effective commercial offers for obtaining their first home.

Apparently, according to studies of the real estate market in Jersey City, the new projects currently for sale are not complying with the percentage required by law. Real estate experts say that the developers of these properties are resisting the implementation of this new rule.

Despite the assistance and significant tax exemptions received by all investors and developers of new housing projects, they are ignoring the guidelines to which they committed and are overlooking the obligation of the affordable housing law.

The omission of the norm is clearly evidenced in the new housing project like Bayfront. The developer of this important project, despite receiving tax incentives, has omitted the construction of the percentage required by law. Apparently, most of the properties built there are being designated for residents with moderate incomes, which excludes those with low and very low incomes.

Other cases of non-compliance with the affordable housing law can also be observed in the Journal Squared and LeFrak’s Newport projects. In both cases, they have allocated a lower percentage of construction and prioritized the building of more expensive and less favorable spaces for the residents named by the law.

All developers, in addition to not favoring the housing affordability that Jersey City demands, are putting pressure on residents who are increasingly feeling the high costs of properties, both to buy and to rent. In addition to this, the high costs are causing an excessive increase in rental prices, as well as a high displacement of residents to other cities.

In addition to the displaced residents and people without their own housing, there are also multiple real estate agents harmed by the lack of enforcement of the affordable housing law in the city. Many are calling for more control, oversight, and enforcement by the administrative authorities to ensure compliance with the norm.

Concerned real estate agents point out that if the market presents many housing offers at very high prices and demand decreases, due to residents having sufficient resources to buy a house, a marked imbalance in the real estate market will be generated that could harm them even more.

Foreclosures available:

Jersey City: 150 homes available.

Bayfront: 30 homes available.

Journal Squared: 25 homes available.

Newport: 45 homes available.

By Elías DaSilva | 07 de Noviembre de 2024