Corzine’s Stimulus Package Could Cost New Jersey Taxpayers $48,000 in Affordable Housing Costs for every 16 Jobs Created

Governor Corzine’s new economic stimulus package claims to help New Jersey businesses by giving them a $3000 credit for each employee they hire. What is not being reported though is that every New Jersey business is still required to pay for one affordable housing unit for every 16 jobs which they create according to New Jersey’s Council on Affordable Housing (COAH).

Using the current affordable housing calculations for example in Middlesex County a company that creates 16 new jobs would then be obligated to pay $145,000 towards one affordable housing unit.

Governor Corzine’s new $3000 credit would allow the business which creates 16 new jobs in Middlesex County to not have to pay $48,000 of their affordable housing obligation through the $3000 credit they would receive through each new job created.

This however means the taxpayers of New Jersey are then subsidizing $48,000 of the cost for each of these required housing units.

The $3000.00 credit falls within a grey area since according to the courts it is illegal to require taxpayers to fund affordable housing. The funding is supposed to come through the various surcharges such as the one affordable unit being built for every 16 jobs created as well as the 2.5% fee which is assessed on all new residential building.

In the end this appears to be a way of spreading the wealth around in New Jersey by taking taxpayers money and finding another way to funnel into affordable housing.