New jersey assembly approves municipal homelessness bill in 66–4 vote

TRENTON, N.J. – The New Jersey Assembly has overwhelmingly approved legislation allowing municipalities to establish local homelessness trust funds and housing plans, marking a major step toward empowering towns and cities to address homelessness with local resources and strategies.

Assembly Bill 3360 passed the chamber by a 66–4 margin following committee revisions earlier this month. The measure permits municipal governments to create homelessness trust funds by ordinance and to adopt formal housing plans by resolution. The funds would be supported through local fees, fines, and penalties, capped at five dollars per collection, with proceeds directed exclusively toward programs aimed at reducing homelessness and expanding access to affordable housing.

Under the bill, municipalities could use trust fund dollars for a range of housing-related programs, including the construction or rehabilitation of affordable housing units, rental assistance and vouchers, supportive services such as temporary hotel accommodations, and prevention programs to help at-risk individuals and families maintain housing stability. Only 5 percent of each fund’s annual deposits could be used for administrative costs.

Projects supported by the program would be required to demonstrate measurable reductions in homelessness, government cost savings, and evidence-based models that could be replicated elsewhere. Each project must also align with the municipality’s adopted homeless housing plan and maintain long-term affordability for at least 30 years.

Committee amendments to the bill expanded the definition of supportive services, raised the maximum allowable fee from three to five dollars, and simplified oversight requirements by removing the need for an advisory task force.

Lawmakers framed the measure as a way to give local governments the tools to address homelessness with flexibility and accountability. The legislation now advances to the Senate for consideration.

The New Jersey Assembly voted 66–4 to approve a bill allowing towns to establish local homelessness trust funds and housing plans funded through municipal fees and fines.

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