NJ Senate Budget Committee Approves Landmark Affordable Housing Legislation

TRENTON – Today, the New Jersey Senate Budget and Appropriations Committee approved landmark legislation (Bill S50/A4) to set a course for future enforcement of the Mount Laurel Doctrine, the state’s constitutional requirement for every town to provide its fair share of affordable housing.

This was the final committee hearing needed for the bill, which is expected to be voted on by the full Senate as soon as next Monday. The Assembly already approved the legislation in February and Gov. Murphy urged passage of the bill in his recent Budget Address.

The legislation would streamline the affordable housing development process for municipalities and everyone involved by codifying the methodology used to determine affordable housing obligations — thus reducing judicial involvement and legal costs.   Its primary sponsors are State Senators Troy Singleton and Nicholas Scutari, as well as State Assemblymembers Yvonne Lopez, Craig Coughlin, Benjie Wimberly, and Verlina Reynolds-Jackson.

New Jersey currently faces a significant gap in affordable housing units — an estimated shortage of more than 230,000 homes, with 14 prospective renters for each vacant home.

The Mount Laurel Doctrine was established through a series of watershed New Jersey Supreme Court decisions beginning in 1975 in litigation brought by the Southern Burlington County and Camden County Branches of the NAACP. Affordable housing obligations are based on population changes and growth in a region each decade. The current round of affordable housing obligations go through 2025, at which point the Fourth Round of obligations will begin.

Advocates particularly applauded the Senate’s amendments to increase how long affordable housing once built remains affordable, to 40 years for new rentals and 30 years for homes for-sale.

“Today’s vote is good news for New Jersey families who are struggling to keep up with skyrocketing housing costs,” said Adam Gordon, Executive Director of Fair Share Housing Center. “This legislation puts New Jersey on a path toward historic gains in affordable housing production over the next decade. By setting forth clear rules now, municipalities and everyone else involved will understand what’s needed to address New Jersey’s dire housing shortages. We particularly applaud Sen. Singleton and members of the Budget Committee for moving forward strong amendments to ensure that new affordable homes remain affordable over time.”

“This legislation is a milestone for New Jersey and could bring stability to one of the most important constitutional and human rights — the right to a safe, healthy, and affordable place to call home,” said Bishop Fred Rubin, pastor at Community Refuge Church in Manalapan, NJ. “Every week, I hear from hard-working members of my congregation who are struggling to afford a roof over their heads. The time for action is now to chart a course for New Jersey’s future, before our housing crisis goes from bad to worse.”

“New Jersey needs well over 24,000 units of supportive housing — affordable housing paired with voluntary services — for our neighbors who face barriers to stable housing, including those with significant mental health needs, developmental disabilities, or exiting nursing homes or other institutions,” said Brian McShane, Associate Director of NJ & PA at the Corporation for Supportive Housing (CSH). “Senate Bill 50 is a unique opportunity to help our communities increase their housing stock and CSH urges legislators to support this timely and critical legislation.”

“For over 35 years, our non-profit members and other housing champions have worked tirelessly to make sure our state is a place everyone can afford to call home,” said Staci Berger, president and chief executive officer of the Housing and Community Development Network of NJ. “We applaud the committee for advancing this crucial piece of legislation which will allow us to continue doing what we do best – building affordable homes to address the critical housing shortage facing NJ’s families, because we believe housing is a human right. Together, we can HouseNJ, ensuring housing security, stability, and affordability for all residents for generations to come.”

“Housing is such a critical component of our lives, serving as the difference between surviving and thriving,” said Taiisa Kelly, CEO of Monarch Housing Associates.  “Every New Jersey resident should be afforded the opportunity to thrive which is why housing is and must be recognized as a human right.  We applaud the passage of S50 which moves us one step closer to a framework for opportunity and access to housing that will enable every NJ resident to thrive.”

“The affordable housing crisis in New Jersey is getting worse every day, with monthly rents in one city averaging $5,000,” said Beverly Brown Ruggia, Financial Justice Program Director for New Jersey Citizen Action. “Addressing this crisis will require a broad-based and sustained legislative intervention. The bill advanced today will simplify, advance, and strengthen the implementation of the Mount Laurel doctrine, and help ensure that all New Jersey municipalities create their fair share of affordable housing. We urge all our legislators to vote in support of this critical legislation,  and for Governor Murphy to sign it into law as soon as possible.”

“Today’s vote is an important step toward addressing New Jersey’s rising rates of homelessness and housing instability,” said Connie Mercer, CEO of the NJ Coalition to End Homelessness. “The Mount Laurel Doctrine is a critical tool to address housing instability — but only if it’s enforced correctly.  In my decades of work with people experiencing poverty, if there is one thing I know for sure, it is that we must do all that we can to protect the process for enforcing the Mount Laurel Doctrine.”

“The Supportive Housing Association applauds the Senate Budget and Appropriations Committee for passing S50,” said Diane Riley, Executive Director, Supportive Housing Association (SHA) of NJ.  “This critical legislation makes meaningful strides to ensure that people with disabilities can find a home they can afford in communities throughout NJ. SHA encourages the Senate to pass S50 and the Governor to sign the final bill establishing an enduring foundation of affordability throughout the state for all, including individuals and families with special needs.”

Key provisions in the legislation include:

Streamlined Process – The Department of Community Affairs will provide initial guidance numbers for affordable housing obligations. A new Affordable Housing Dispute Resolution Program would provide mediation opportunities to municipalities to address concerns with the obligations and process. This includes clear timelines for each phase of the Mount Laurel certification process, including identification of the affordable housing obligation, adoption of a fair share plan, and adoption of final municipal zoning ordinances and related actions.

Codification of Affordable Housing Obligation Methodology – Inclusion of a statewide method for each municipality to calculate their respective affordable housing obligation for the fourth round and beyond, based on the “Jacobson Methodology” adopted in 2018 that represented a middle ground between advocates and municipal positions. Codifying the methodology would allow municipalities to more effectively and efficiently determine their obligation without prolonged judicial involvement, while reducing legal costs associated with the affordable housing process.

Increased Transparency – Requires more transparent information to be shared with the public at each stage of the process, from adoption of initial plans to what is built and what trust funds are available to non-profit developers to create and rehabilitate affordable housing. Includes regulatory updates on how affordable homes are built and occupied and how trust funds are expended that have not been updated in nearly 20 years.

Repeal of the Council on Affordable Housing (COAH) – Removes COAH from statute. COAH became a defunct agency that failed to meet its mandate. As such, its removal will allow affordable housing to progress in New Jersey.

No Regional Contribution Agreements – Maintains the ban on wealthy towns paying out of their obligations and requires every town to do its fair share.

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Fair Share Housing Center is a nonprofit advocacy organization that uses legal, policy, and community-building strategies to dismantle decades of racial and economic discrimination in New Jersey and nationally that excludes people from the opportunity to live in safe, healthy, and affordable housing.