TRENTON, NJ – Governor Phil Murphy has signed a comprehensive set of bills aimed at revolutionizing affordable housing in New Jersey. This legislative package promises a more equitable, efficient, and cost-effective approach to meeting the state’s affordable housing needs, transitioning away from the court-driven processes of the past.
The centerpiece of the reforms, the bill A-4/S-50, spearheads a new framework under the Mount Laurel doctrine and the Fair Housing Act, set to take effect from the compliance period beginning in 2025. The Department of Community Affairs will use a non-binding formula to calculate municipalities’ affordable housing needs, with a newly established dispute resolution program to expedite disagreements. This marks a departure from the erstwhile Council on Affordable Housing’s role, aiming to reduce litigation delays and provide clearer directions for towns and developers.
Additionally, the legislation introduces a “bonus credit” system to encourage the development of affordable housing in specific scenarios, including age-restricted and special needs accommodations, with a cap on these credits to ensure a diverse housing stock.
Other notable bills include the establishment of a pilot program by the New Jersey Housing Mortgage and Finance Agency to aid affordable housing projects, tax breaks to spur new developments, delegation of certain municipal approvals to streamline the construction process, and the endorsement of “payment in lieu of taxation” agreements for projects funded through housing trust funds.
These reforms are hailed by state officials as crucial steps towards addressing New Jersey’s affordable housing challenges, with aims to enhance the availability, accessibility, and affordability of homes for its residents, thereby fostering economic growth, educational and employment opportunities, and community stability.