Many Mayors are wrestling with meeting Round 2 COAH obligations and preparing for the new criteria created under Round 3. This has placed a tremendous burden on Mayors in developing an effective economic program to encourage commercial ratables when those very developments increase your COAH obligations.

Under Round 3 the following requirements must be met when you increase your commercial ratable base:

A one in 25 non-residential ratio shall be used to determine the number of affordable units to be created for each new job created in our municipalities; for every 25 new jobs created a municipality, as measured by new or expanded non-residential construction, the municipality shall have the obligation to provide one affordable residential unit. New jobs created shall be based on the gross square footage of non-residential development and on the use group (category) of the facility being constructed.

The state is using the International Building Code (IBC), which has been incorporated by reference into the Uniform Construction Code (UCC).

For example: Office buildings utilize a ratio of 8,333sf generate one affordable unit, Mercantile requires 25,000sf to generate one affordable unit; Factories are one affordable unit per 12,500sf; Storage uses need 125,00sf before generating one affordable unit except High Hazard manufacturing is determined at 25,000sf to require one affordable unit;

Assembly areas ranging from restaurants, nightclubs, libraries (yes, they are included), arcades, bowling alleys, funeral homes, houses of worship, arenas and etc. all are a ratio of 8,333sf to one affordable housing unit required; Schools (K-12) are in the formula at 25,000sf, which gives you a COAH obligation of one unit; Institutional covering hospitals, nursing homes, jails and the like are formulated at 12,500sf per one affordable unit; and last but not least hotels and motels require 31,250sf to generate one affordable unit.

At the same time there is a specific formula used to calculate the number of jobs created per square foot for each of these categories listed. If a municipality issues a certificate of occupancy for a 25,000sf office building the affordable housing obligation would be 25,000sf divided by 8,333 or three affordable units.

It is a frightening prospect for both the municipalities and the developers facing the requirements generated by the above ratios. New Jersey is in a difficult situation with the rules and regulations demanding so many barriers to be crossed to get permits to build and than you add the legal burden brought about to meet a communities COAH obligation that more often than not is placed on the shoulder of developers

One of the greatest difficulties facing communities and developers is how do you build affordable housing. How can you create affordable housing when the New Jersey construction market cost is $150/square foot to build a house? It is an overwhelming problem that is exacerbated by the tremendous shortage of affordable houses in New Jersey. Experts have stated that there is a deficit of over 200,000 affordable housing units presently and growing by the tens of thousand each year.

There maybe a solution on the horizon. Recently, my colleague Susan and I had an opportunity to visit a unique factory in Camden City that builds affordable housing that is inexpensive, constructed with the electrical and plumbing built into the core unit and folds up for transportation and unfolds on-site. We witnessed them folding up and then unfolding a house.  It was absolutely amazing.  We observed variously sized single-family homes, two- and three-story town houses including the fact that they can be connected together and a building constructed similarly but could be used as a small commercial building.

Vince Shanni, CEO of HOMEMATIC, and a resident of New Jersey, is the inventor and creator of this surprising affordable housing. Scientifically engineered, the HOMEMATIC product is a new concept in housing, resulting from 25 years of research and design.  The home is completely factory assembled, which maximizes economics and scale while eliminating costly variables like weather delays, on-site pilferage and dependency on skilled field labor.  The end product is of the highest quality.

The resulting project provides an affordable home for prospective homebuyers that provide all the comforts of a custom built structure and can meet a municipality’s requirements for affordable housing that would fit into the community.

Steel makes this “INSTANT” HOME happen.  Each home is complete with all the options available in other homes.  HOMEMATIC technology’s 16-gauge structural steel frame, floor joists and steel truss roof system assure long term, secure and comfortable living.  The home roof is certified to withstand 160 mile-an-hour winds.  The truss system gives the room a feel of much roominess.

The housing designs utilize a system that expands from a core, is then folded and ready to transport from the plant to the home site where it is fully expanded.  They may be erected over either a crawlspace, full basement foundation or on a concrete slab. The house or townhouse can be constructed in 10-12 hours.

The HOMEMATIC single-family home and townhouse models are constructed entirely of conventional building materials, utilizing steel studs and magnesium home walls.  Structural walls utilize double-wall construction.  Plumbing and electrical work are completely pre-installed.  Interior design, including bathrooms and kitchen is determined by the homeowner’s choice through a variety of options.  Kitchen colors, wall coverings, cabinets and fixtures, bath cabinets and fixtures are completely installed in the factory.

Mr. Shanni’s home models range from single-family homes from 440 sq. ft. to 1,920 sq. ft. single floor with 2 floor models constructed from 2,000 sq. ft. to 3,600 sq. ft. and the townhouses are available from 1,100 sq. ft. to 3,000 sq. ft.

The houses and townhouses use a new and innovative construction sandwich panel system.  Instead of using gypsum, these homes are constructed with magnesium.  Magnesium is better for fireproofing, prevents mold and is more cost effective.  The cost for construction is around $60 a square foot. 

Truly affordable housing that may be an answer to the crisis facing all of our municipalities in meeting our COAH obligations. He is looking for potential sites to build additional factories. For more information, you can contact Mr. Shanni at 908-601-0000.