As of today, 431 towns have adopted resolutions to participate in the state’s affordable housing planning process, following a January 31 deadline.
The final tally represents approximately a 25% increase in municipalities participating in the process compared to the last round of affordable housing obligations in 2015 — validating the intent of new legislation signed last year to make the process clearer, reduce litigation costs, and encourage more municipalities to participate.
In October, the NJ Dept. of Community Affairs (DCA) released calculations on the number of affordable homes each municipality is required to allow over the next decade. Municipalities had until January 31 to accept DCA’s calculations or to challenge them by providing their own calculation consistent with NJ law, through the state’s new Affordable Housing Dispute Resolution Program.
Most towns accepted DCA’s calculations. Now, any interested party has one month to file a challenge to municipal calculations. If no challenge occurs, then a municipality can go ahead with the number that it filed. For challenges, a decision must be issued by the Program no later than March 31. Towns will then have the number of affordable homes they need to plan for for the next decade. Municipal Housing Elements and Fair Share Plans, including proposed drafts of zoning and other ordinances and resolutions, are required to be adopted by participating municipalities by June 30.
“It’s encouraging that the vast majority of municipalities, many of whom supported the new law’s passage, are moving forward with creating homes under the new law,” said Adam Gordon, executive director of Fair Share Housing Center. “In the midst of a deep housing crisis, New Jersey’s new affordable housing law creates a win-win situation by giving municipal leaders tools to plan in the best way for their communities. It’s a chance to help hard-working families live closer to jobs and schools, while prioritizing equitable redevelopment to foster resilient communities for generations to come.”
In New Jersey, the constitutional obligation for each municipality to allow its fair share of affordable homes, known as the Mount Laurel Doctrine, is recalculated every 10 years in cycles known as Rounds. Each municipality’s obligations are calculated by looking at factors in various regions of the state — such as job growth, existing affordability, and the growth of low- and moderate-income households — which determines an individualized requirement for affordable housing.
Ahead of the Fourth Round starting in July 2025, Governor Murphy signed landmark legislation (A4/S50) last year that streamlines the affordable housing development process and codifies the methodology used to determine each municipality’s obligations over the next decade. The updated framework increases transparency, while also safeguarding towns’ discretion in deciding how they want to fulfill their fair share obligation. For towns who cooperate with the process, the new law is expected to reduce municipal costs.
New Jersey’s law gives towns a wide variety of tools to create affordable housing in the way they prefer. Municipalities can choose from a range of options — such as 100% affordable housing, mixed income housing, supportive housing for seniors or people with disabilities, or re-purposing abandoned malls or offices. The recently-enacted law and associated bills give towns additional tools like new bonuses, financing options, and credits to meet their affordable housing responsibilities.
The new law also requires more transparent information to be shared with the public at each stage of the process, from adoption of initial plans to what is built and what trust funds are available to non-profit developers to create and rehabilitate affordable housing.
“New Jersey’s affordable housing law was passed with bipartisan support from a broad coalition of elected officials and community stakeholders across the state,” added Gordon. “We look forward to working with towns and community leaders to implement the new law and create much-needed affordable homes for working families, people with disabilities, and seniors who are struggling with record-high housing costs.”
