Housing (Property Development)

This bill allows New Jersey municipalities to use up to 30% of their municipal development fee trust funds - designated for affordable housing programs - to provide down payment assistance grants to first-time veteran homebuyers, with each veteran eligible for up to $15,000 per grant. The grants will not be counted as income for determining eligibility for other state benefits or for tax purposes. This policy change directs existing municipal funds toward supporting veterans in purchasing homes, supplementing other state housing assistance programs without creating new funding.

SCR 52 proposes a constitutional amendment to ban exclusionary zoning in New Jersey, which prevents municipalities from blocking housing development for low and moderate income residents. The amendment explicitly states that towns are not required to build or fund affordable housing units, removing the "affirmative obligation" that fueled costly lawsuits. This change aims to end "builder's remedy" cases where courts forced specific housing projects, while still allowing courts to strike down discriminatory zoning practices. The amendment must be approved by New Jersey voters in the next general election.

This bill appropriates $125 million from the General Fund to the New Jersey Affordable Housing Trust Fund (NJAHTF) to restore funds previously diverted for affordable housing. It directly affects municipalities that have certified compliance with fair share housing plans and housing elements, enabling them to access grants and loans for new affordable housing projects. The funds will support housing development in communities meeting state housing obligation requirements, as authorized under existing law. This is a funding restoration measure, not a new policy.

This bill, S 2889 ("The Desegregate New Jersey Act"), requires New Jersey municipalities to permit accessory dwelling units (ADUs) - secondary living spaces on single-family lots - and mixed-use developments (combining residential and commercial spaces) in areas currently zoned only for single-family homes. It directly affects municipalities (by changing zoning rules) and homeowners (by allowing ADUs without triggering affordable housing quotas). Key provisions ban restrictions like mandatory passageways between units, parking fees for ADUs, or age requirements for occupants, and set a 65-day deadline for permit decisions. Municipalities failing to update zoning by June 2022 must follow these rules until compliance, removing barriers to denser, more diverse housing options.

This bill requires New Jersey municipalities to permit accessory dwelling units (ADUs) in single-family and two-family residential zones as a standard use, eliminating the need for special approvals beyond standard zoning. It sets specific size limits (minimum 300 sq ft, maximum 1,200 sq ft), height restrictions (max 20 feet), and setback rules (no more than five feet for detached ADUs). The bill also mandates that ADUs must be rented separately from the primary dwelling but cannot be sold separately, and exempts them from fire sprinkler requirements if the primary dwelling does not require them. These provisions directly affect homeowners seeking to build ADUs and municipalities required to update zoning regulations.