New Jersey is restoring $45 million to its Affordable Housing Trust Fund after a significant reduction earlier this year. The fund, which originally stood at $125 million, was reduced to $5 million in June during budget negotiations. This move drew criticism from developers, housing advocates, and local officials.
According to the Department of Community Affairs (DCA), the newly allocated funds are expected to support between 10 and 20 projects. Of the restored amount, $10 million is designated for Habitat for Humanity, an organization that focuses on providing homeownership opportunities.
Developers will be able to reapply for funding at the end of the week, with a cap of $3 million per project. Proposals that were already submitted before the June cuts will need to be resubmitted. Some projects remain uncertain about their future; for example, a Habitat for Humanity development in Old Bridge still faces a $4 million funding gap.
Liz DeCoursey, chief executive officer of Greater Middlesex & Morris Habitat, said the restoration was “great news” but noted that her organization continues to have dozens of projects on hold.
The reduction in funding came months after state lawmakers passed legislation intended to create more than 80,000 affordable homes over the next ten years. The cutbacks raised concerns about meeting those goals and increased frustration with Governor Phil Murphy’s administration. State officials said reallocating funds was necessary to support other housing initiatives such as first-time buyer assistance.
Local leaders and developers argue that uncertainty around the trust fund makes it harder to plan and finance affordable housing developments at a time when New Jersey faces high housing costs compared to much of the country. Full restoration of the fund may not occur until November when a new administration takes office.
“Creating affordable housing remains one of the department’s highest priorities,” DCA Commissioner Jacquelyn Suárez stated.
