TRENTON, N.J. — A New Jersey Assembly panel has advanced legislation that would tie access to several state grant programs to municipal compliance with affordable housing obligations.
The Assembly Housing Committee on Monday reported favorably on Assembly Bill 5869, which would require the Department of Community Affairs (DCA) and the New Jersey Economic Development Authority (EDA) to give priority consideration to towns meeting their affordable housing requirements when awarding competitive grants or financial aid through the Main Street New Jersey Program, the Neighborhood Preservation Program, and similar initiatives.
The proposed law would not affect grants or assistance that are specifically designated to help towns meet those housing obligations. Instead, it applies only to funding awarded through competitive programs where municipalities compete for state dollars.
Key Points
- Bill A5869 ties grant eligibility to affordable housing compliance in NJ municipalities
- Priority in programs like Main Street NJ and Neighborhood Preservation would shift
- Prior builder’s remedy lawsuits and settlements will factor into compliance evaluation
Under the bill, during the first five years after a new affordable housing cycle begins, the DCA would evaluate compliance using metrics including previous builder’s remedy lawsuits, fair share settlements from earlier rounds, and the percentage of housing obligations fulfilled. The department may also consider any other criteria it deems relevant.
“The bill’s provisions would not apply to grants or financial assistance intended to help a municipality fulfill its affordable housing obligation,” the legislative summary states.
If enacted, the bill could influence how municipalities approach affordable housing planning by linking their compliance to broader state funding opportunities.