State must meet demand for affordable housing

A recent appellate court decision that voided the state's guidelines for affordable housing was an essential step in getting back on course to providing homes for New Jersey's low- and moderate-income workers.

K. Hovnanian, the state's largest homebuilder and the largest for-profit provider of affordable housing, joined other organizations taking a stand against the third-round rules when the Council on Affordable Housing issued them in 2004. It is our belief that the rules would defeat the very purpose the council was obligated to address. "Growth share," the backbone of the discredited rules, assumes growth. But few New Jersey towns welcome growth without economic incentives or the force of law.

Therefore, finding a home in New Jersey was and continues to be difficult, especially for low- or middle-income workers, the very people who maintain our businesses and governments.

If they can't find housing, they'll move where housing is affordable, and businesses that need such workers will follow them. Failure to resolve this conundrum will accelerate an economic death spiral into which the state already is slipping.

Instead of wasting another year in court, COAH members need to embrace the spirit of the law, determine the numbers and get it right on the first try. The court has given our leaders six months to correct the failures of the current policy. That's not a lot of time, but it is enough if they focus on the issue, build consensus among interested parties and take a realistic and transparent approach to solving the issue.

K. Hovnanian stands ready to work with all parties so we can meet the rising demand for housing that New Jersey's workers can afford. The Garden State's economic life depends on it.

Peter Reinhart

senior vice president and

general counsel

Hovnanian Enterprises

former member of COAH

Red Bank