Advocates urge Gov. Mikie Sherrill to fully fund Affordable Housing Trust Fund in FY2027 budget

TRENTON – Today, the Housing and Community Development Network of New Jersey (the Network) and the National Low Income Housing Coalition (NLIHC) released “The Gap: A Shortage of Affordable Homes,” reporting that New Jersey has only 34 affordable homes for every 100 extremely low-income renter households. The release comes as a coalition of more than 100 housing, community development, and social service organizations sent a letter to Governor Sherrill urging her to fully fund and protect the Affordable Housing Trust Fund (AHTF) in her upcoming Fiscal Year 2027 budget proposal.

“With Governor Sherrill set to deliver her first budget address next week, this report makes the stakes unmistakably clear: New Jersey does not have enough affordable homes for the families who need them most,” said Staci Berger, president and chief executive officer of the Network. “This is the moment to fully fund the Affordable Housing Trust Fund and keep every dollar focused on building homes.”

Ahead of Governor Sherrill budget address, housing advocates are calling on her administration to fulfill her campaign commitment to end diversions from the AHTF and prioritize investments that will close the state’s widening housing gap.

Specifically, the Network and its coalition partners are urging the Governor to:

•Fully fund the Affordable Housing Trust Fund in the FY2027 budget;
•Dedicate at least half of new mansion tax revenue to sustain and grow the AHTF; and
•Raise the Neighborhood Revitalization Tax Credit (NRTC) cap to $65 million.

Housing advocates and nonprofit developers continue to rally around the AHTF, a funding source legally dedicated for nonprofit developers to create affordable homes for low-income families. The AHTF was subject to a budget raid last year that resulted in approximately $125 million being diverted to other programs; while $45 million was restored, $80 million was not invested and community developers were not able to create affordable homes as a result. During her gubernatorial campaign, Governor Sherrill pledged to oppose further diversions from the fund.

Momentum is also building in the Legislature. Today, the New Jersey Senate Community and Urban Affairs Committee advanced legislation to expand the Neighborhood Revitalization Tax Credit Program, one of the state’s most impactful tools for equitable community development in neighborhoods across New Jersey.

“The findings from The Gap show that no state or major metropolitan area has an adequate supply of affordable and available homes for extremely low-income renters," said NLIHC President and Chief Executive Officer Renee M. Willis. "It is a sad fact that only one in four households who qualify for housing assistance receive it. When renters are housing cost-burdened, they cannot afford to cover other basic necessities such as food, healthcare, transportation, or childcare.”

“Low-income renters in New Jersey must compete for these few affordable rental homes, forcing two-thirds of them to live in homes they can’t afford or, worse, into homelessness,” said Matthew Hersh, vice president of policy and advocacy for the Network. “Three-quarters of extremely low-income renters in our state pay more than half of their income on rent. With the Governor’s budget address approaching and legislative leaders advancing solutions like the NRTC expansion, this is the moment to make bold investments. Fully funding the AHTF and strengthening neighborhood revitalization efforts will create homes, generate jobs, and ensure our communities can thrive.”

To view the full report, visit nlihc.org/gap.

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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