New Jersey’s affordable housing challenges have intensified in recent years, driven by a combination of rising housing costs, stagnant wages, and a significant shortage of affordable units for low- and moderate-income families. Consequently, the demand for affordable housing across the state has become increasingly urgent. The New Jersey Urban Mayors Association believes that the recently enacted affordable housing law (P.L. 2024, c. 2) and the calculations set forth by the NJ Department of Community Affairs are important steps toward addressing these challenges and ensuring all residents have access to safe, stable, and affordable housing.
The new affordable housing law in New Jersey introduces a formula-driven methodology that addresses both prospective need, new construction, and present need, rehabilitation of existing units. These calculations, designed to fairly distribute housing obligations across municipalities, ensure that all communities contribute based on their unique population growth projections and demographic trends, including migration, household formation, and birth rates. This informs the number of new affordable homes required in each municipality. The formula then incorporates income levels and the affordability gap. With over 150,000 affordable homes required by 2035, the law provides a clear, data-backed approach that balances local needs and resources.
Some critics argue that the law imposes an unfair financial burden on municipalities; however, these concerns overlook the substantial support available to municipalities. The Department of Community Affairs, through its Office of Local Planning Services, offers technical assistance to municipalities at no cost, including support with master planning, zoning, and ordinance development. Furthermore, the state’s Municipal Affordable Housing Trust Fund provides financial assistance for both new development and rehabilitation, with millions available per project through programs such as the Municipal Settlement Fund, Neighborhood Partnerships Fund, and the Innovation Fund. The latter fund promotes creative housing solutions, including tiny homes and clean energy initiatives, and provides essential resources for municipalities working to meet their obligations. These resources provide critical financial resources to help municipalities meet their obligations, making compliance feasible and sustainable.
Urban municipalities, home to many of New Jersey’s most vulnerable populations, will play a significant role in fulfilling both prospective and present needs. Many already bear a disproportionate share of the state’s affordable housing burden, particularly when it comes to rehabilitating older housing stock. The law’s emphasis on rehabilitation will help preserve affordable housing and prevent further deterioration in these communities. Thus, claims that urban areas are unfairly exempt from affordable housing obligations are untrue.
Suburban municipalities, while less burdened by rehabilitation needs, may still face challenges in building new affordable housing developments. However, concerns about property values or a perceived burden on local resources should not delay or derail efforts to address the state’s growing housing crisis. The law ensures that all municipalities contribute in proportion to their size, growth, and housing demand.
The New Jersey Urban Mayors Association is committed to collaborating with state legislators, the Department of Community Affairs, and local communities to advance New Jersey’s efforts to reduce homelessness and increase housing availability. Municipalities that embrace these responsibilities and the resources available to them will not only fulfill their legal obligations but also strengthen their communities.
The New Jersey Urban Mayors Association fully supports affordable housing law P.L. 2024, c. 2 and concurs with the calculations set forth by the NJ Department of Community Affairs. We encourage all municipalities to act promptly and responsibly in developing their affordable housing plans to ensure everyone in New Jersey has safe, stable, and affordable housing.
Adrian Mapp is the mayor Plainfield and the president of the New Jersey Urban Mayors Association.
