The legislature provided an administrative alternative to this constitutional obligation via the Fair Housing Act. As a quasi-judicial organization, COAH can also impose resource restraints and consider motions regarding housing plans. In December 1990 the New Jersey Supreme Court directed COAH to determine criteria for development fee ordinances and then to review and approve the ordinances for municipalities. COAH is an administrative and regulatory organization. It does not produce, fund or compel municipalities to expend local funds to build affordable housing.
Some municipalities also expend their own funds or utilize bonding resources.
COAH does provide municipalities that choose to enter its process and obtain substantive certification of their fair share plans with an administrative shield from developer's lawsuits. The COAH Process New Jersey municipalities enter the COAH process voluntarily. Petitioning assures continued protection from lawsuits while COAH reviews, sometimes requests revisions and possibly mediates objections from interested parties before COAH grants or denies substantive certification. Certification is granted for a six-year period and may be withdrawn if a municipality fails to assure the continuing realistic opportunity for its fair share housing obligation. Often municipalities can meet a portion of their fair share obligation through rehabilitation of existing units.