A Memorandum of Understanding between the New Jersey Housing and Mortgage Finance Agency and the Department of Community Affairs was approved, according to a Wednesday announcement. The MOU finalizes the $305 million allocated in the Fiscal Year 2023 budget towards New Jersey’s Affordable Housing Production Fund, aiding in the development of thousands of new affordable housing units in New Jersey.
The AHPF, which is administered by NJHMFA, was established by Gov. Phil Murphy in his FY23 budget with the goal of building over 3,300 new affordable housing units across approximately 43 developments statewide. The AHPF was designed to allow for the full completion of all 100% affordable housing projects identified in municipal housing settlements that have yet to be built, eliminating the state’s backlog of these projects by the end of the governor’s second term.
“In launching the Affordable Housing Production Fund last year, we took an urgent approach to addressing the affordable housing needs in our state,” Murphy said. “No family should ever have to experience the stress of finding an affordable place to call home. In building the ‘Next New Jersey,’ this administration remains committed to making affordable housing accessible to the individuals and families who call this great state home.”
“Gov. Murphy’s full funding of 3,300 housing units through the Affordable Housing Production Fund is a huge step forward towards meeting the extreme need for quality, affordable housing in New Jersey,” said Lt. Gov. Sheila Y. Oliver, who serves as the commissioner of the Department of Community Affairs.
Since the launch of the AHPF, NJHMFA has already dedicated $202 million to support the construction of 3,020 new affordable housing units. The remainder of the funds will create close to another 1,000 new units.
“As of June 2023, we have committed two-thirds of the entire allocation amount, and we expect to allocate the remainder by the end of the upcoming fiscal year. With this MOU, we can begin expending the funds immediately. The Production Fund is helping New Jersey communities realize their affordable housing goals at an unprecedented rate, ensuring its impact will be felt for decades to come,” said Melanie Walter, executive director of the New Jersey Housing and Mortgage Finance Agency.
