COAH

“Capitalism is responsible for the current food crisis and starvation around the world,” the voice on the radio said. “Attend our Introduction to Marxism conference this Friday and learn about the merits of Marxism.” Driving up the New Jersey Turnpike, I was shocked to hear this commercial on a popular radio station, though I shouldn’t be. The Left is on the march and more emboldened than ever. So, like any good capitalist wanting to learn what the radical left is up to, I registered.

Everything that I admire and fear about the Democratic Party was on display this week. The compassion for creating affordable housing and the insensitivity to economic growth were both reflected in the new COAH rules.

New Jersey needs affordable housing. Young workers and people on modest incomes need a place to live and raise their families. We all agree.

The problem is the tragedy of unintended consequences. Previous policy allowed communities with a COAH obligation to send money to other communities with a need to build. It worked very well. Rural communities where we want to stop suburban sprawl would subsidize housing in Jersey City or Elizabeth. Affordable housing was built along mass transit corridors where services were available at more modest costs. Urban areas with sufficient affordable housing were exempt. A consequence of the exemption was that Trenton or Newark didn't impose COAH fees on developers and they achieved a comparative advantage with suburban and rural areas for new development.