New Jersey Returns Portion of $100 Million Affordable Housing Funds Previously Seized

Restored Funding Boosts Affordable Housing in New Jersey

After a period of controversy and criticism, the New Jersey Affordable Housing Trust Fund has been revitalized with $45 million, providing a much-needed boost for affordable housing projects across the state.

The Department of Community Affairs (DCA) has restarted the trust fund application process, giving developers until October 3 to apply for funding on the department's website. The funding limit per project is set at $3 million.

Previously submitted applications for grants will need to be resubmitted, as the DCA has initiated a fresh round of funding allocations. The restored funding follows an uproar among affordable housing developers and local politicians due to the trust fund being reduced to just $5 million earlier this year.

Housing advocates around the state, including Liz DeCoursey, CEO of Greater Middlesex & Morris Habitat for Humanity, have welcomed the restored funding as a step in the right direction but not enough. DeCoursey, whose organization put dozens of projects on hold due to the lack of affordable housing trust fund dollars, plans to reapply for funding for her projects.

DeCoursey expressed her gratitude for the restored funding but emphasized the need for further action. "While this is a positive step, it's not enough to meet the demand for affordable housing in our state," she said.

The DCA's Commissioner Jacquelyn A. Suárez stated that creating affordable housing remains one of their priorities. Requests for proposal will open on September 5, and $10 million of the restored funding will be reserved for Habitat for Humanity.

Matthew Hersh, vice president of policy and advocacy at the nonprofit Housing and Community Development Network of New Jersey, expressed a similar sentiment, stating his organization would continue to fight to get the full $125 million back in the fund.

The $70 million removed from the Housing and Mortgage Finance Agency in New Jersey's 2022 budget negotiations will be restored using federal American Rescue Plan Act funds and will be allocated within the state's capital budget.

One project in Old Bridge has a shortfall of over $4 million, and it remains to be seen how the restored funding will be distributed among the various projects. DeCoursey plans to work with legislators in November when the new administration comes in to get the trust fund fully restored.

The restored funding is enough to fund 10 to 20 affordable housing projects, providing a glimmer of hope for those struggling to find affordable housing in New Jersey. Projects that exceed the $3 million dollar grant limit may have to be done in phases, but the restoration of the trust fund marks a significant step forward in addressing the state's affordable housing crisis.

New Jersey Returns Portion of $100 Million Affordable Housing Funds Previously Seized