Housing affordability and availability has been a growing area of concern in New Jersey, and state leadership has begun to take action, albeit slowly. For far too long housing demand has outpaced supply, creating an imbalance that has been greatly exacerbated by exclusionary zoning policies. Allowing and encouraging the creation of more housing options will help lower prices and ultimately create stronger and more diverse communities.
New Jersey’s fiscal year 2023 budget passed on Wednesday dedicates $305 million from the American Rescue Plan to the construction of 3,300 affordable units. This arrangement funds projects that have been approved under the state’s municipal Fair Housing Act settlements, but have been awaiting financing. Housing advocates have lauded the move but have also called on the state to allocate additional funds to cities, as the settlement-funded housing projects are located in suburban communities that have not met their Mount Laurel obligations.
Additionally, legislative committees in both houses advanced separate pieces of zoning reform legislation designed to increase the state’s housing supply. The Assembly took aim at repurposing beleaguered office parks and retail centers, while the Senate made the first move to legalize accessory dwelling units (ADUs).
While neither bill is perfect in its current form, Regional Plan Association (RPA) has been working with the sponsors and is excited to see both chambers of the legislature engaging in this much-needed conversation about the interplay between housing supply, affordability, inclusivity, and local zoning. There is still a long way to go, but the initial hearings on each bill represent an important first step toward creating more equitable and affordable housing options across the state.
The first bill, S345 sponsored by Senator Troy Singleton, would legalize ADUs statewide and was passed by the Senate Community and Urban Affairs Committee. As drafted, the bill has several elements that should be revised, including an overly broad opt-out provision, confusing language around allowable size for an ADU, and language allowing the municipality to restrict occupancy to residents enrolled in the state’s affordable housing programs.
RPA has been organizing a group of business, industry, and non-profit stakeholders to develop amendments. While no changes were made to the bill in committee, Senator Singleton has been deliberative in his approach and has shown a willingness to work with us as the bill advances.
In the lower chamber, A1294 sponsored by Assembly Majority Leader Lou Greenwald, would establish a two-year window in which developers would be able to submit applications to convert certain underutilized office parks and retail centers into mixed-use developments, regardless of local zoning requirements. The bill was passed by the Assembly Community Development Committee, then amended upon second-reference in the Assembly Housing Committee. The bill is expected to pass before the end of the year.
Regional Plan Association operates within the 31-county tri-state region, which includes northern New Jersey.
In addition to the legislation described above, there are two other bills that would legalize ADUs that have been introduced but not yet heard:
S3584 (Timberlake) is the most comprehensive ADU bill, drafted in part by a former editor of the community development publication ShelterForce, Harold Simon.
A1985 (Mukherji) the “Desegregate New Jersey” Act is the broadest of the measures, seeking to not only legalize ADUs but also transit-oriented development as-of-right statewide.
RPA has been working with all sponsors of the above legislation, and has been advocating for hearings in both chambers in late fall.
