Governor Murphy signs affordable housing overhaul into law

Gov. Phil Murphy signed an overhaul of the state’s affordable housing system into law Wednesday, the final step for a plan that will extend new legal protections and bonus credits to municipalities seeking to build new low- and moderate-income housing.

The law, which ends a court-run system that has overseen affordable housing construction for close to a decade, abolishes the defunct Council on Affordable Housing, guards municipalities from exclusionary zoning lawsuits under certain conditions, and creates a bevy of new bonus credits that municipalities can use to reduce their affordable housing obligations, among other things.

“Let’s be clear: today’s legislation is a major victory for the working families of New Jersey because nobody in our great state should ever have to worry about finding a safe, comfortable place to call home,” Murphy said at a bill signing in Perth Amboy.

Under the new law, the Department of Community Affairs, instead of the courts, will make calculations to determine the affordable housing needs in six state regions.

The protections the law grants to municipalities that meet affordable housing deadlines are not absolute. Such municipalities could still face challenges under the Mt. Laurel doctrine, constitutional case law that requires municipalities to provide realistic opportunities for the construction of affordable housing.

Those challenges would be handled by a court-run affordable housing dispute resolution program created by the law.

The legislation broadens the number and scope of bonus credits municipalities can use to reduce their affordable housing obligations by up to 25%.

Towns earn one credit for each unit of affordable housing they build, and the new law allows them to earn full or partial bonus credits for extending affordability terms on existing affordable housing, building housing for individuals with certain disabilities, or erecting age-restricted affordable housing, among other things.

“This new law ensures that New Jersey will have one of the strongest frameworks in the U.S. to require affordable homes in historically exclusionary communities,” said Adam Gordon, executive director of Fair Share Housing Center. “This will help tear down the walls that have denied too many in our state access to opportunity and create new affordable homes near jobs, schools, and transportation.”

The law was opposed by Republicans and some municipalities who warned it would lead to uncontrolled development that could strain local infrastructure or change the character of towns.