Majority Leader Ruiz’s Bill Stimulating Low and Middle-Income Housing Development Signed into Law

Establishes New Jersey’s First Long-Term Investment in Middle-Income Workforce Housing

TRENTON – Today, Governor Phil Murphy signed S-4071 into law, legislation that addresses the housing shortage and expands opportunities for affordable living across New Jersey. The bill, sponsored by Majority Leader M. Teresa Ruiz, Senate President Nick Scutari, Senator Troy Singleton, Senator Linda Greenstein, and Senator Shirley K. Turner, provides $500 million in tax credits to the New Jersey Mortgage Finance Agency (HMFA) to sell at auction and then utilize the proceeds to support low- and moderate-income housing development in addition to middle-income workforce housing development in the state.

“This law, for the first time, signifies New Jersey’s long-term commitment to middle-income workforce housing, which will give families more room in their budgets and allow them to continue living in their communities for years to come,” said Majority Leader Ruiz.

The state currently faces a shortage of nearly 290,000 affordable homes, according to the National Low Income Housing Coalition. Beyond this supply gap, many middle-income families who don’t qualify for housing assistance still face challenges securing reasonably priced homes near their jobs and schools.

“The people who keep our communities running—teachers, nurses, construction workers, police officers, and countless others—are working hard to make a living, yet still struggling under the weight of housing costs. To truly address New Jersey’s housing crisis and ensure every family has a place to call home, we need a comprehensive approach—one that expands both designated affordable housing and increases options for middle-income families who don’t qualify for assistance but are still priced out,” said Majority Leader Ruiz.“This bill will help towns fulfill their affordable housing obligations and will stimulate middle-income housing development to close this gap in the market.”

The bill shifts $500 million in tax credits currently authorized for the “Brownfields Redevelopment Incentives Program Act,” the “New Jersey Aspire Program Act,” and the “Emerge Program Act,” to the New Jersey Housing and Mortgage Finance Agency (HMFA), which will sell them through a competitive auction process over the course of no more than six years. The HMFA is limited to selling $100 million in tax credits annually and cannot sell tax credits for less than 80% of the tax credit amount.

The bill defines “low- and moderate-income housing” as affordable housing for households earning less than 80% of the area's median income. “Middle-income workforce housing” is defined as affordable housing for households earning between 80% and 120% of the area's median income, based on the federal Department of Housing and Urban Development or other recognized standards. Half of the auction proceeds fund middle-income workforce housing through the HMFA, while the other half supports low- and moderate-income housing to help municipalities meet their affordable housing obligations under the Fair Housing Act.

Under the bill, housing includes, but is not limited to, new construction or the rehabilitation or construction of residential units with multiple dwellings. The HMFA is required to actively promote middle-income workforce housing to ensure a substantial range of potential applicants for funding are made aware of the program.