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New Jersey’s fourth round of affordable housing obligations is out, calling for approximately 150,000 units to address present and prospective needs.

The state Department of Community Affairs released non-binding calculations Oct. 18 based on an analysis established under  legislation Gov. Phil Murphy signed in March. The latest round covers duties during the next decade, 2025-2035, under the New Jersey Supreme Court’s Mount Laurel doctrine and the state’s Fair Housing Act.

The totals include details for all of the state’s 564 municipalities. DCA said the new calculations offer locales – as well as developers – more certainty for “smarter planning” around where to build housing.

“The calculations help address New Jersey’s housing shortage by equipping municipalities with clear numbers so they can better plan on how to provide affordable housing options in their communities,” commented DCA Commissioner Jacquelyn Suárez.

“The new law provides a unique opportunity to develop ‘missing middle’ housing—options like townhouses, duplexes, and other types of multi-family units that bridge the gap between single-family homes and large apartment complexes, offering the diverse housing choices that New Jersey families desire and need,” Suárez continued.

Making changes

Upon enactment, officials said the legislative changes would streamline compliance and reduce litigation-related delays for new affordable housing construction.

The new law formally abolished the Council on Affordable Housing. Now, the judiciary will deal with any disagreement via a new Affordable Housing Dispute Resolution Program. According to DCA, it also outlines “bonus credits” available to municipalities.

These allow some affordable housing units to count as 1.5 or 2 units in certain circumstances. The agency says the move incentivizes age-restricted housing; housing set aside for individuals with special needs; and other location or purpose-specific housing projects, such as housing near mass transit stations. Bonus credit units are limited to 25% of a municipality’s prospective need, DCA said.

The new law also establishes related parameters for how much housing available to families with children and rental housing can satisfy a specific responsibility.

To help municipalities, DCA said it will appoint housing liaisons to:

• Streamline affordable housing efforts
• Help cities meet their obligations
• Use affordable housing trust funds
• Track project completion

The administration highlighted its commitment to affordable housing in the latest announcement, with more than $108 million invested through the Affordable Housing Trust Fund across 44 projects (and supplemented by National Housing Trust Fund and the HOME Investment Partnerships Program funding).

Looking ahead, DCA said it will prioritize future AHTF funding for municipal obligations. Additional NHTF and HOME grants will go toward projects serving vulnerable populations, including veterans, survivors of domestic violence, and individuals with special needs.

Help is on the way

To assist municipalities, NJ Housing Opportunities for Municipal Equity and Success will launch early next year, DCA said. It will emphasize models like single-family homes, duplexes, townhomes and accessory dwelling units. The program aims to create walkable, vibrant communities serving residents at all life stages—from young professionals to seniors and caregivers, according to the agency.

NJHOMES will offer financial resources, technical assistance, and tools to address opposition and promote sustainable development. It will also introduce an Affordable Housing Playbook & Toolkit. DCA said that package will feature best practices, zoning guidance and case studies. It will also include outreach materials to assist municipalities in developing affordable housing that meets their communities’ individual needs.

To foster engagement, the NJHOMES Institute will additionally offer virtual and in-person training. Meanwhile, planning grants and technical assistance will help municipalities develop effective housing strategies, DCA said.

“I am grateful to the New Jersey Department of Community Affairs for their timeliness in calculating this data and their partnership in advancing our shared goal of expanding access to affordable housing,” Gov. Phil Murphy commented along with the calculations’ release. “We look forward to seeing this law implemented and benefiting families across the Garden State.”

More information, including the fourth round calculation workbook, is available here.

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