New Jersey is moving forward with significant affordable housing reforms following the passage of landmark legislation in 2024. These reforms aim to address the state’s housing shortage and enforce compliance with the Mount Laurel Doctrine, which requires each municipality to provide its fair share of affordable housing for low- and moderate-income residents.
Key Affordable Housing Initiatives in New Jersey:
- Streamlined Affordable Housing Process: Under the new law, municipalities must develop and submit a Housing Element and Fair Share Plan (HEFSP) by mid-2025, detailing how they will meet their affordable housing obligations over the next decade
- Zoning Law Revisions: Towns are required to revise their zoning to accommodate diverse housing types, including “missing middle” housing such as duplexes, townhouses, and multifamily units. These changes are designed to create walkable, vibrant communities and provide a wider array of affordable housing options
- Incentives for Transit-Oriented and Special Needs Housing: Municipalities will receive bonus credits for developing affordable housing near transit hubs, special needs housing, and redeveloping existing commercial or retail land. These incentives aim to boost the supply of housing in key areas while also supporting vulnerable populations
- Deadlines and Penalties: Municipalities must determine their housing obligations by January 31, 2025, and finalize zoning and housing plans by June 30, 2025. Failure to comply with these deadlines may lead to loss of immunity from lawsuits
- Funding and Support through NJHOMES: Launching in early 2025, the NJ Housing Opportunities for Municipal Equity and Success (NJHOMES) program will offer financial support, technical assistance, and zoning toolkits to help municipalities implement their plans effectively.
New Jersey’s affordable housing reforms are set to reshape the housing landscape, fostering inclusive growth and ensuring that towns meet their fair share of housing needs.
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