TRENTON – This week, State Senator Britnee N. Timberlake (D-Essex) unveiled legislation that would appropriate $125 million to restore diverted funds back into the New Jersey Affordable Housing Trust Fund (AHTF), a critical source of financing for creating and rehabilitating affordable homes for low- and moderate-income residents statewide.

"Restoring $125 million to the Affordable Housing Trust Fund is critical to ensuring that affordable housing gets built—not delayed, not downsized, but delivered,” said Senator Timberlake. “This is more than a financial decision; it’s a moral imperative. These funds directly support working families, seniors, and vulnerable residents across New Jersey. When we invest in housing, we invest in stability, dignity, and the economic future of all communities. Affordable housing doesn’t materialize on good intentions alone, it demands consistent, deliberate funding. Replenishing the Trust Fund is essential to reigniting stalled developments and launching new ones that will shape the future of New Jersey."

A growing coalition of New Jersey’s elected leaders support restoration of the AHTF and urge their Legislative colleagues and the Governor to prioritize housing affordability. The AHTF plays an essential role in helping municipalities meet their affordable housing obligations, supporting smaller-scale local projects that federal funding often overlooks, and keeping housing costs manageable for New Jersey families.

The diversion of funds for the new fiscal year means critically needed homes will not be built at a time when the state faces a dire shortage of both rental and homeownership opportunities, with a deficit of nearly 250,000 affordable homes statewide. Access to affordable homes is particularly daunting for renters in NJ. To afford a modest, two-bedroom apartment at fair market rent in NJ, full-time workers need to earn $39.99 per hour. The average renter in the Garden State earns $23.97 per hour, making NJ the seventh most expensive place for renters in the nation.

Housing advocates have urged legislators and the Governor’s office to restore the Trust Fund, sending thousands of emails, taking out electronic billboards and meeting with stakeholders over the summer.
“The Affordable Housing Trust Fund is one of the most effective tools we have to address New Jersey’s housing crisis,” said Staci Berger, President and CEO of the Housing and Community Development Network of New Jersey. “Every dollar that’s diverted is a delay in getting a family into a safe, affordable home. We urge the Legislature and Governor to restore the Fund immediately and protect it from future raids. We appreciate Senator Timberlake’s leadership and look forward to working with her and her colleagues to build the homes New Jersey needs.”

Senator Troy Singleton (D-Burlington) called for immediate action:

“This funding is needed now more than ever… Without full restoration, dozens of projects are at risk—municipalities may be unable to build the housing our residents need.”

City of Newark Mayor Ras J. Baraka criticized the diversion:

“Diverting funds now is shortsighted. With a deficit of nearly a quarter-million housing units, this is no time for fiscal shortcuts.”

Senator Andrew Zwicker (D-Middlesex/Mercer/Somerset/Hunterdon) underscored the economic stakes:

“The Affordable Housing Trust Fund is essential to lowering costs and expanding access to safe, stable homes for working families who power our economy. Every dollar should go directly to building and preserving affordable housing. Protecting and strengthening this fund is how we ensure that every New Jerseyan can afford to build a life here.”

Senator Anthony M. Bucco (LD-25) reiterated hope for reversal:
“It’s not too late. Trenton Democrats can reverse course and restore much-needed funding.”

In an article published by Gothamist on August 15, Democratic nominee for governor U.S. Rep. Mikie Sherrill (NJ-11) said she opposes future diversions from the Trust Fund. Republican nominee Jack Ciattarelli’s campaign did not respond to the reporter's request for comment.

Advocates are also urging lawmakers to pass legislation that would dedicate at least half of the newly enacted “Mansion Tax” revenue to the Affordable Housing Trust Fund, creating a stable and long-term funding stream to expand access to affordable homes. Legislation to dedicate the funds was introduced by Sen. Benji Wimberly and Asw. Reynolds-Jackson in June.

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 270 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.

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