TRENTON, NJ – Two New Jersey state senators have introduced legislation that would make it easier for religious institutions and nonprofit organizations to convert their existing properties into housing developments that include affordable units.
The bill, sponsored by Senator Troy Singleton (D-Burlington) and Senator Benjie E. Wimberly (D-Bergen/Passaic), aims to address the state’s housing shortage by allowing conversions of unused or underutilized religious and nonprofit-owned buildings into inclusionary developments.
Under the proposal, these projects would be designated as a permitted use under municipal zoning rules, eliminating the need for use variances if the developments meet affordability and design standards.
Streamlining conversions for faith-based and nonprofit properties
The measure defines eligible property as land or buildings owned by religious or tax-exempt nonprofit organizations. It requires local planning boards to permit full or partial conversions of such properties into inclusionary developments, provided at least 20 percent of the residential units are set aside as affordable housing for very low-, low-, or moderate-income households.
The bill also establishes specific affordability ratios: at least half of the affordable units must be low-income, and 13 percent of those must be designated for very low-income residents. All projects must comply with New Jersey’s Uniform Housing Affordability Controls.
Municipal boards would be required to approve applications if projects meet zoning and housing requirements. The bill sets a base allowance of 40 residential units per acre and authorizes building one story above the maximum local height limit, unless existing zoning allows for greater density.
Expanded incentives for community redevelopment
In addition to zoning relief, the legislation makes projects eligible for long-term tax exemptions under New Jersey’s Long Term Tax Exemption Law. This provision would enable municipalities to negotiate payment-in-lieu-of-taxes agreements with developers, helping to finance new construction while maintaining municipal revenue.
The bill further allows qualifying projects to seek other state and local incentives, grants, or financing opportunities to support redevelopment efforts. Municipalities must ensure compliance with the Municipal Land Use Law and all applicable zoning regulations that do not conflict with the new provisions.
Senators Singleton and Wimberly say the measure would unlock new pathways for community-oriented organizations to contribute to the state’s affordable housing supply, particularly in areas where vacant or underused institutional properties remain idle.
Key Points
- Bill introduced by Senators Troy Singleton and Benjie Wimberly would let religious and nonprofit groups convert property into affordable housing.
- Projects meeting zoning and affordability standards would not need use variances.
- Approved developments could qualify for long-term tax exemptions and other financial incentives.