Unpacking the Affordable Housing Crisis: Are Politicians Just Playing with Numbers?

As a professional dedicated to affordable housing, I find it alarming when optimism overshadows the reality of our housing crisis. Recently, Jim McGreevey made bold claims about building affordable housing in Jersey City, but the numbers simply don't add up. The city is in dire need of affordable homes, and we need leaders who can deliver concrete solutions, not just empty promises.

The Cost of Affordable Housing: The Facts

In a recent article, McGreevey stated that constructing an affordable housing unit costs around $500,000—this figure is accurate. However, from there, his projections become murky:

• PILOTs: Undoing the Pompidou PILOT will likely require a lengthy legal battle. Simply put, it can't be reversed unless KRE breaks their agreement. Even if Jersey City could manage to do this, the resultant tax revenue wouldn’t directly fund the 1,000 affordable units McGreevey talks about.
• LIHTC: The Low Income Housing Tax Credit is highly competitive and linked to state obligations. Jersey City hasn't even submitted a successful application since 2018. The reality is that even with a miracle, it’s improbable to gain more than one building annually.
• ASPIRE: This public tax credit program offers tax breaks to corporations in exchange for funding approved projects. Unfortunately, its success rate in delivering affordable units has been minimal.
• AHTF: The Affordable Housing Trust Fund's current legal maximum brings in $2-4 million annually. However, McGreevey's claim of $50-100 million is far from reality. We are constrained by state law, and no additional funds can be procured without a legislative change.
• HOME: This federal funding is limited and often requires matching funds, making it insufficient to cover the full cost of affordable housing units.

The Distressed Units Dilemma

While the Jersey City Redevelopment Authority has access to some distressed properties, this is not enough to meet our urgent housing needs. The high demand for land in Jersey City makes it challenging for government initiatives to compete without substantial public subsidies.

Even if Jersey City somehow secured every conceivable funding source (which is highly unrealistic), we could barely fully fund 66 affordable units per year. Clearly, we need more.

Solutions Are Within Reach

There is hope on the horizon! The Pompidou site is part of the Journal Square 2060 Redevelopment Plan. Earlier this year, the community successfully advocated for mandatory affordable housing requirements, which stipulate that new developments with more than 30 units must include 10% affordable units. While this is a step forward, it is crucial that we expand this requirement beyond just the Journal Square area.

Had the full ordinance been in place for the Pompidou site, we could have seen 119 affordable units without needing any public funding. This precedent-setting legislation can be replicated citywide, ensuring that every new development contributes to solving the housing crisis. Imagine if every new building in Jersey City included 100 affordable homes—this dream is not just possible; it is achievable!

Trust and Accountability in Leadership

McGreevey’s assertions regarding the Pompidou project and his funding claims are not only unrealistic but potentially misleading. With his established ties to developers and recent fundraising with figures known for their connections to the real estate industry, it raises concerns about whether he genuinely prioritizes affordable housing over the interests of wealthy donors.

Jersey City deserves a leader who values transparency and can deliver real solutions, not just hollow promises that crumble under scrutiny.

What Do You Think?

• Do you believe McGreevey's plans for affordable housing are achievable, or are they just political rhetoric?
• Should Jersey City implement stricter regulations on developers to ensure affordable housing is included in new projects?
• How can community members better advocate for affordable housing in their neighborhoods?
• Is it time to reconsider the role of PILOTs in funding affordable housing, or do they serve a necessary purpose?
• What are your thoughts on the effectiveness of current funding sources for affordable housing? Are there alternatives?