TRENTON, N.J. — If your town is fighting the state of New Jersey over their affordable housing mandate, Trenton is ready to punish your community. The state has drafted legislation that will punish towns by cutting off funds for the handicapped, schools, parks, and other community projects.
Comply or be denied.
New Jersey lawmakers have introduced a bill that would give priority consideration for state grants to municipalities that comply with their affordable housing obligations, effectively penalizing towns that resist such development.
The legislation, sponsored by Assemblymen William Spearman (D-Camden), Sterley Stanley (D-Middlesex), and Raj Mukherji (D-Hudson), would require the Department of Community Affairs (DCA) and the New Jersey Economic Development Authority (EDA) to favor compliant municipalities when awarding funding through programs like the Main Street New Jersey Program and the Neighborhood Preservation Program.
The bill states that the DCA will determine a municipality’s compliance based on several factors, including the use of a builder’s remedy lawsuit in the prior housing cycle, the existence of past affordable housing settlements, and the percentage of prior obligations met.
After five years, compliance would be determined based solely on the current housing cycle.
Municipalities that are legally exempt from fair share housing requirements would automatically be deemed compliant and remain eligible for priority consideration. The measure would not apply to funding specifically intended to help towns meet their affordable housing obligations.
If passed, the bill would add financial consequences for municipalities that resist affordable housing mandates.