Over 100 Housing Advocates Sign Letter Telling NJ Leaders to Protect Housing Investments in State Budget
Offer solutions for expanding housing resources

TRENTON – NJ housing advocates are urging Governor Murphy and NJ legislators to preserve the NJ Affordable Housing Trust Fund (AHTF) for its legally intended use: housing production. In a letter addressed to Governor Murphy signed by the Housing and Community Development Network of NJ (the Network) and over 100 community development organizations, advocates offered recommendations to expand resources to improve housing affordability in NJ.

Community developers are expressing dire concern over proposed federal funding cuts that will devastate the U.S. Department of Housing and Urban Development. They are also sounding the alarm about the state budget, which they believe may include a diversion of the NJ Affordable Housing Trust Fund. The AHTF is the only major source of state investment in the creation of affordable homes. Governor Murphy has repeatedly promised to end the diversions made under former Governor Christie that drained the AHTF of nearly $1 billion, using it to fund other housing programs. Network members have and will continue to hold the administration accountable for their commitment to solving our housing crisis by protecting the solvency of the Trust Fund and not diverting it for any other purpose

“We’ve made significant strides in addressing the affordable housing shortage, but it’s crucial that we maintain our momentum,” said Edward Bethea, Network Board Chair and Vice President and COO of Gateway Community Action Partnership. “Our residents are relying on us to ensure that our state remains an affordable place to call home. To achieve this, we need the necessary resources to create the housing that municipalities are obligated to provide. The AHTF is an invaluable resource that we must expand to help HouseNJ succeed.”

The AHTF has deployed over $100 million to create and preserve homes around the state, with many more plans underway as the Fourth Round rules take effect. According to the National Low Income Housing Coalition, New Jersey has a severe shortage of affordable homes, with estimates ranging from 200,000 to 300,000. Under the Mount Laurel Doctrine’s fourth round obligations, towns need to zone for 85,000 new affordable homes and 65,000 refurbished units statewide over the next decade.

“Our organization has been able to work with many towns to create more affordable living opportunities for their residents, much of that work was made possible by the AHTF,” said Liz DeCoursey, CEO of Greater Middlesex & Morris Habitat for Humanity. “The need is far too great in NJ and individuals and families are waiting, often in desperate situations. With these funds though, we can deliver new homeownership opportunities faster and more efficiently. Without such initiatives, municipalities may struggle to fulfill their affordable housing commitments, making Habitat’s work even more critical.”

Homeless service providers are especially alarmed by the impact of state and federal funding cuts in wake of the June 2024 U.S. Supreme Court decision on Johnson v. Grants Pass. The Court that ruled that local governments can criminalize, arrest, and fine people experiencing homelessness for sleeping outside even when there are no alternatives for them.

“The high cost of housing is a major threat to our state’s economy and it’s the key reason why people wind up in shelters or on the street,” said Taiisa Kelly, CEO of Monarch Housing Associates and member of the Network Board of Directors. “Every person in New Jersey deserves a healthy and secure place to live and thrive because housing is a human right. Our elected leaders can protect that right by taking bold action to grow the resources that keep our residents safe and stably housed.”

The letter to Governor Murphy offers the following suggestions to expand resources for housing affordability:

• Create Housing Revenue Streams through a Fee on Luxury Home Sales: We encourage the creation of a new revenue source through the sale of homes over $2 million that could fund vital programs that make living and raising a family in the state more affordable. The fee’s impact would be limited to a small fraction of the housing market.

• Lower the rent: NJ should adopt a fee on for-profit, luxury developments that could be forgiven or refunded if the landlord provides affordable units through inclusionary zoning and/or keeps rent increases at a reasonable rate.

• Make evictors pay: NJ must increase the eviction filing fee to $150, up from the current $50. This increased fee would be deposited directly into DCA’s Office of Homelessness Prevention. Revenue could also be used to provide critical resources for eviction diversion counseling, rental assistance and/or legal counsel for lower income tenants.

About the Housing and Community Development Network of NJ

The Housing and Community Development Network of New Jersey is the statewide association of more than 275 community development corporations, individuals and other organizations that support the creation of affordable homes, economic opportunities, and strong communities. For more information on the Network, visit www.hcdnnj.org.