New Jersey Department of Community Affairs Releases Affordable Housing Calculations

New Jersey Department of Community Affairs Releases Affordable Housing Calculations

• Posted on: 10/18/2024

Calculations Released in Accordance with October 20th Deadline Set in Landmark 2024 Affordable Housing Law

TRENTON, NJ - The New Jersey Department of Community Affairs (DCA) today published the non-binding calculations of municipalities' present and prospective need for affordable housing using a formula outlined in P.L 2024, Chapter 2. DCA carefully analyzed the data sources contained in the law and produced an analysis that provides a fair and accurate presentation of the affordable housing responsibilities established by the legislation that Governor Murphy signed in March 2024. The DCA calculations serve as guidance for municipalities as they plan for affordable housing development during the next decade.

The Department's publication of the calculations by the October 20, 2024 deadline reflects DCA's commitment to providing all 564 municipalities with the data, information, and support they need to meet their affordable housing responsibilities under the law. The calculations give municipalities and developers more certainty, which enables smarter planning around where housing should be built. The affordable housing calculations can be found HERE.

"I am grateful to the New Jersey Department of Community Affairs for their timeliness in calculating this data and their partnership in advancing our shared goal of expanding access to affordable housing," said Governor Murphy. "We look forward to seeing this law implemented and benefiting families across the Garden State."

"The calculations help address New Jersey's housing shortage by equipping municipalities with clear numbers so they can better plan on how to provide affordable housing options in their communities," said DCA Commissioner Jacquelyn A. Suárez. "The new law provides a unique opportunity to develop 'missing middle' housing-options like townhouses, duplexes, and other types of multi-family units that bridge the gap between single-family homes and large apartment complexes, offering the diverse housing choices that New Jersey families desire and need."

The law establishes a new, streamlined framework for determining and enforcing municipalities' affordable housing responsibilities under the New Jersey Supreme Court's Mount Laurel doctrine and the State's Fair Housing Act. The New Jersey Judiciary will resolve disputes about municipalities' affordable housing responsibilities and their plans to satisfy those responsibilities with assistance from a new dispute resolution program called the Affordable Housing Dispute Resolution Program.

The law outlines how municipalities may receive "bonus credits" that allow affordable housing units to be credited as 1.5 or 2 units in certain circumstances. This bonus credit system incentivizes age-restricted housing, housing set aside for individuals with special needs, and other location or purpose-specific housing projects, such as housing near mass transit stations. The law limits bonus credit units to 25% of a municipality's prospective need. It establishes related parameters for how much of a municipality's responsibilities must be satisfied through housing available to families with children and rental housing.

The Department will support municipalities by appointing housing liaisons to streamline affordable housing efforts, helping cities meet their obligations, utilize affordable housing trust funds, and track project completion. Ongoing training for these liaisons and administrative agents will further strengthen local housing initiatives.

These efforts demonstrate the Administration's continued commitment to affordable housing, with over $108 million invested through the Affordable Housing Trust Fund (AHTF) across 44 projects, supplemented by funding from the National Housing Trust Fund (NHTF) and the HOME Investment Partnerships Program (HOME). Future AHTF funding will be prioritized for municipal obligations, with additional NHTF and HOME grants directed toward projects serving vulnerable populations, including veterans, survivors of domestic violence, and individuals with special needs.

Launching in early 2025, NJ Housing Opportunities for Municipal Equity and Success (NJHOMES) will offer comprehensive support for municipalities to develop affordable housing that aligns with community needs. NJHOMES will emphasize diverse models like single-family homes, duplexes, townhomes, and accessory dwelling units to create walkable, vibrant communities that serve residents at all life stages-from young professionals to seniors and caregivers. This initiative will provide financial resources, technical assistance, and tools to address opposition and promote sustainable development. NJHOMES will also introduce an Affordable Housing Playbook & Toolkit, featuring best practices, zoning guidance, case studies, and outreach materials to assist municipalities in developing affordable housing that meets their communities' individual needs. Additionally, the NJHOMES Institute will offer virtual and in-person training, fostering partnerships and community engagement, while planning grants and technical assistance will help municipalities develop effective housing strategies.

DCA offers a wide range of programs and services, including local government management and finance, affordable housing production, fire safety, building safety, community planning and development, disaster recovery and mitigation, historic preservation, and information privacy.

For more information about DCA, visit https://nj.gov/dca/ or follow the Department on social media:

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