Housing Advocates Raise Alarm, As State Budget Continues to Limit Affordable Home Building

Despite facing a shortage of 200,000 homes, NJ FY2027 budget provides little investment for community development

TRENTON – The Housing and Community Development Network of New Jersey (the Network) expressed disappointment with initial reports indicating that only $36 million will be available for affordable home production through the Affordable Housing Trust Fund (AHTF) in the Fiscal Year 2027 budget, while the Neighborhood Revitalization Tax Credit (NRTC) Program will remain flat funded at $15 million.

“State leaders have repeatedly and publicly acknowledged that New Jersey faces a housing affordability crisis and called for the creation of more affordable homes. They agree with us that we can’t make New Jersey more affordable unless we make housing more affordable," said Matthew Hersh, vice president of policy and advocacy for the Network. "Yet, when it comes time to make the investments necessary to address that crisis, they are not putting in enough funding to meet this moment. This year’s allocation is an improvement over FY26, but much more is desperately needed."

Since 2008, governors and legislative leaders from both sides of the aisle have often used budget language to overcome the legal obligation and divert funding to other budget elements. Last year, Gov. Murphy’s final budget zeroed out the AHTF completely. Housing advocates and community developers successfully won a $45 million allocation to the AHTF after the budget was signed. The FY2027 budget restores a fraction of the amount that the AHTF is due; it is funded through a dedicated portion of NJ’s realty transfer fee and usually collects over $100 million annually. The FY2027 funding falls approximately $100 million short of the investment needed to make meaningful progress in meeting the housing needs of low-income families, seniors, people with disabilities, veterans, and other vulnerable residents.

New Jersey is facing a shortage of hundreds of thousands of affordable homes, driving up housing costs and forcing families to make impossible choices between paying rent and meeting other basic needs. The AHTF is a significant tool for creating and preserving affordable homes, leveraging additional federal, local, and private resources to maximize impact. It is used by hundreds of small nonprofit developers such as NJ Community Development Corporation, New Brunswick Tomorrow, Passaic Habitat for Humanity, Gateway Community Action Partnership, Affordable Housing Alliance, NORWESCAP, Greater Middlesex and Morris Habitat for Humanity and Parkside Business and Community in Partnership in Camden, to name a few, to produce smaller scale development that help transform neighborhoods.

The Network also expressed frustration that the Neighborhood Revitalization Tax Credit Program, one of the most successful public/private programs, furthering community development and neighborhood change in New Jersey, was not expanded despite growing demand and leveraging $5-$7 for every dollar invested.

“Our communities continue to face rising housing costs, increasing homelessness, and mounting economic pressures,” said Hersh. “This budget represents a missed opportunity to meet the urgency of New Jersey’s housing crisis with the level of investment needed to address it. We are grateful to the many elected officials who have championed these issues. We look forward to continuing our work with Governor Sherrill, Senate President Scutari, Speaker Coughlin, and members of the Legislature to secure the resources necessary to fully fund these critical programs and expand housing opportunities for New Jersey residents.”

About the Housing and Community Development Network of NJ

The Housing and Community Development Network of New Jersey is the statewide association of more than 275 community development corporations, individuals and other organizations that support the creation of affordable homes, economic opportunities, and strong communities. For more information on the Network, visit www.hcdnnj.org.