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The Memorandum of Understanding signed by NJHMFA Board and Department of Community Affairs paves the way for over 3,300 new affordable housing units across the state.
6-21-2023 5:01pm
New Jersey Seals Deal for $305 Million Federal Allocation to Bolster Affordable Housing
Chris Connors
Editor
TRENTON – The New Jersey Housing and Mortgage Finance Agency (NJHMFA) Board approved a Memorandum of Understanding (MOU) on June 20, 2023, finalizing the American Rescue Plan (ARP) funding for the state's Affordable Housing Production Fund (AHPF). The agreement solidifies a $305 million federal allocation earmarked in the Fiscal Year 2023 budget for AHPF, aiding the construction of thousands of new affordable housing units in the state.
The AHPF, overseen by NJHMFA and established by Governor Murphy in his Fiscal Year 2023 budget, aspires to build over 3,300 new affordable housing units across approximately 43 developments statewide. The fund aims to ensure the completion of all 100% affordable housing projects identified in municipal housing settlements that are yet to be constructed, hence eradicating the state’s backlog by the conclusion of the Governor’s second term.
Governor Murphy stated, “In launching the Affordable Housing Production Fund last year, we took an urgent approach to addressing the affordable housing needs in our state. No family should ever have to experience the stress of finding an affordable place to call home. In building the Next New Jersey, this Administration remains committed to making affordable housing accessible to the individuals and families who call this great state home.”
The Lieutenant Governor Sheila Y. Oliver, who also serves as the Commissioner of the NJ Department of Community Affairs, lauded the initiative.
“Governor Murphy’s full funding of 3,300 housing units through the Affordable Housing Production Fund is a huge step forward towards meeting the extreme need for quality, affordable housing in New Jersey,” Lieutenant Governor Sheila Y. Oliver said.
Since the inception of the AHPF, the NJHMFA has allocated $202 million towards the construction of 3,020 new affordable housing units. The remaining funds are expected to aid the creation of almost 1,000 additional units.
Melanie R. Walter, Executive Director of the NJHMFA, expressed confidence in the fund's impact.
"The Affordable Housing Production Fund is a key component of New Jersey's comprehensive strategy to address housing access and affordability. As of June 2023, we have committed two-thirds of the entire allocation amount, and we expect to allocate the remainder by the end of the upcoming fiscal year," Melanie R. Walter, Executive Director of the NJHMFA said.
The approval of the MOU allows the immediate disbursement of the funds, marking a significant step towards addressing the affordable housing crisis in New Jersey.
