Over 100 NJ Nonprofits, Local Officials Demand Full Restoration of Affordable Housing Trust Fund

Broad Coalition Calls on State Leaders to Fix FY2026 Budget Raid and

Use Mansion Tax Revenue for Housing Affordability

TRENTON – With housing costs skyrocketing and affordable rentals increasingly out of reach for working New Jerseyans, more than 100 nonprofit organizations, municipal leaders, and advocates across the state have sent a letter to Governor Murphy and legislative leaders calling for the full restoration of the Affordable Housing Trust Fund (AHTF) and the dedication of new mansion tax revenue to address the state’s housing crisis.

The appeal comes on the heels of the 2025 Out of Reach report released today by the National Low Income Housing Coalition (NLIHC) and the Housing and Community Development Network of NJ (the Network). According to the report, the hourly wage needed to afford a modest two-bedroom apartment at fair market rent in New Jersey has jumped to $39.99—a nearly $2 increase from last year. Meanwhile, the average renter earns just $23.97 per hour, an increase of only 27 cents. The gap is among the widest in the nation, making New Jersey the seventh most expensive state for renters.

“This isn’t just a math problem, it’s a moral crisis,” said Staci Berger, president and CEO of the Network. “Workers earning less than $24 an hour simply cannot afford a decent place to live in New Jersey. Instead of supporting them, the state budget undermines the very fund designed to help.”

The Affordable Housing Trust Fund, New Jersey’s only dedicated source of funding for affordable home development, was diverted in the FY2026 state budget, stripping funds meant to serve low- and moderate-income residents. In their letter, advocates stress that the raid puts hundreds of developments at risk and stalls critical progress amid a severe housing shortage.

The letter also slams state leaders for failing to dedicate any revenue from the newly expanded mansion tax, projected to bring in $300 million annually, toward affordable housing, even though nearly two-thirds of voters in a recent Rutgers-Eagleton poll said they support using that revenue to address housing affordability.

“This is a major mistake that must be reversed this summer without delay,” the letter states. “We urge you to take two critical actions: restore the Affordable Housing Trust Fund and dedicate at least half of the mansion tax revenue to it.”

New Jersey currently faces a shortage of nearly 290,000 affordable rental homes for extremely low-income households. From Paterson to Camden, Perth Amboy to Salem, local leaders report that projects are stalled or at risk of cancellation without state support.

“These are homes for working families, seniors, veterans, and people with disabilities,” Berger added. “We cannot afford to pull the plug on progress.”

Advocates also highlight the racial equity implications of the AHTF, noting that it remains one of the few tools available to reverse systemic housing discrimination and help close the racial wealth gap. Since 2019, nonprofit developers in New Jersey, supported by AHTF dollars, have generated $2.45 billion in economic activity, created 12,500 jobs, and built 4,730 homes.

“The Out of Reach report makes clear what we see every day in our communities, housing is becoming unattainable for far too many New Jerseyans,” said Berger. “This is the moment for bold, immediate action.”

The full letter with the list of signers is available by visiting tinyurl.com/restoreAHTFletter.

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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