Uproar over rule allowing sale of housing requirement

A shouting match erupted yesterday between housing activists and the top Statehouse lobbyist for New Jersey's municipalities over the future of a state rule that allows wealthy suburbs to sell their affordable housing obligation to cities.

The 30-minute meeting between leaders of the New Jersey Regional Coalition, comprised of clergy and housing activists, and New Jersey State League of Municipalities Director William G. Dressel ended when the activists angrily walked out after Dressel would not promise to support legislation abolishing the controversial rule.

Since 1988, 120 mostly upper- and middle-class suburban towns have paid $210 million to 53 poorer communities -- mainly cities and older suburbs -- that agreed to use the money for affordable housing. The transfers agreements were struck under what is called regional contribution agreements, or RCAs.

The activists told Dressel his opposition to a bill eliminating RCAs encourages housing segregation -- a contention he angrily denounced.

"Time is of the essence," said the Rev. David B. Thornton, pastor of the United Presbyterian Church of Paterson. "RCAs are setting us back to the same kind of challenges we had in the '60s. The legislation is a viable alternative."

Dressel, who said he has "real problems with the legislation," loudly said he would not accept "character assassination" because he is following the League of Municipalities position on the suburban-city housing agreements.

"I am willing to work with you on a viable alternative to this thing, but we've got to get past the finger pointing," Dressel said. "Nobody on my staff is a segregationist."

The meeting between Dressel and about 75 activists was held at the offices of the New Jersey League of Women Voters, not far from the Statehouse.

The confrontation occurred on the same day Gov. Jon Corzine, without ceremony, signed a bill to establish a special legislative panel that would re-examine the state's system of attempting to provide access to houses and apartments for New Jersey's low- and moderate-income residents.

Corzine has stated publicly that he opposes the housing transfer agreements.

The Joint Committee on Housing Affordability created by Corzine will conduct a study on the availability of affordable housing, the financing and administration of programs that provide it and the state's land use policies. The panel would also propose legislation designed to help provide affordable housing in the state.

The Corzine administration is appealing two portions of a February court decision that tossed out the Council on Affordable Hous ing's formula for determining how much affordable housing must be provided by suburban and rural towns and directed the agency to come up with new rules. The court ruling canceled the affordable housing plans of 120 towns. Corzine has pledged to provide 100,000 affordable housing units over 10 years but COAH is overdue in providing him a plan.

Housing activists maintain New Jersey needs at least 500,000 affordable homes or apartments. COAH officials state 69,342 affordable units have been created since 1988 and that 77,594 are planned.

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