Published June 7, 2012

By Matt Friedman

TRENTON — A Senate panel has approved a bill to give towns more time to spend money they’ve collected to build affordable housing.

Municipalities have had four years to spend what developers have paid them in fees and payments-in-lieu of constructing affordable units. Under currently law, the unused money — about $250 million — is about to go the state Affordable Housing Trust Fund, which Christie plans to use in his upcoming budget.

“We’re very concerned this money is being transferred out of local towns where it was collected locally in order to backfill the governor’s budget to give a tax cut that we just can’t afford right now,” said Staci Berger, director of advocacy and policy for the Housing & Community Development Network.

The Senate Community and Urban Affairs Committee voted 4-0 in favor of the legislation (S2011), which is sponsored by state Sen. Brian Stack (D-Union). A parallel version is up for a hearing in the Assembly Housing and Local Government Committee later this afternoon.

Stack said many towns did not spend the money because of lack of clear direction from the state. State Sen. Sam Thompson (R-Middlesex) voted in favor of the bill but said towns have to figure out how to spend the money soon.

“You’ve had four years to do it. We’re giving you two more years,” he said. “If you want to spend money, get out there and spend it. It’s not going to be forever.”