$95 Million Available for Development of 'Healthy Homes' in New Jersey

A new initiative aims to provide housing for vulnerable Medicaid members, enhancing community wellness and support.

MORRIS COUNTY, N.J. - In a significant move to tackle housing instability among Medicaid recipients, New Jersey's Human Services Commissioner Sarah Adelman, along with Community Affairs Commissioner Jacquelyn A. Suárez, today announced the availability of $95 million in funding for developers. This initiative, part of the Healthy Homes program, is designed to create affordable housing opportunities for NJ FamilyCare members who are either homeless, at risk of homelessness, or currently living in institutional settings.

“Access to safe, stable, and affordable housing is a necessity that New Jerseyans deserve to see fulfilled, and it directly impacts an individual’s overall health and wellness,” Governor Phil Murphy said.

NJ FamilyCare, New Jersey’s Medicaid program, will see the development of up to 200 low-rent housing units through this partnership. The funding, derived from both the American Rescue Plan Act and the state's Affordable Housing Trust Fund, will cover the construction of new housing units, renovations, essential household appliances like refrigerators and stoves, and the maintenance of these units.

“Housing is one of the primary social determinants of health, and research has shown that inadequate housing is often a critical barrier to wellness that can also raise health care costs,” Human Services Commissioner Sarah Adelman said. “New Jersey’s Healthy Homes program aims to provide affordable, community-based housing to NJ FamilyCare members in need, which ensures long-term housing stability for tenants and, importantly, advances health equity."

In a concerted effort to ensure comprehensive support, the Community Affairs department will oversee the disbursement of funds and maintain program integrity. Developers participating in the program will be responsible for the construction and upkeep of these homes, ensuring they meet the needs of NJ FamilyCare members.

Moreover, this initiative is complemented by the addition of Housing Support Services to NJ FamilyCare, which will include pre-tenancy and tenancy sustaining services, along with support for home modifications and housing transitions. These services are authorized by the Centers for Medicare and Medicaid Services (CMS) through New Jersey’s Comprehensive 1115 Demonstration Waiver and aim to foster a holistic approach to care by integrating physical, behavioral health, and housing needs.

“New Jersey recognizes that good housing leads to improved physical and mental wellness,” Community Affairs Commissioner Jacquelyn A. Suárez said. “Therefore, the state has developed programs like New Jersey Healthy Homes to tackle rising health care costs by addressing a root cause – a lack of affordable housing. With the New Jersey Healthy Homes program now open, we urge developers and landlords to apply and join in the state’s efforts to build permanent, affordable housing for people of limited financial means, in this case NJ FamilyCare members who are experiencing or at risk of experiencing homelessness.” 

The Healthy Homes initiative is part of New Jersey Human Services' broader strategy to enhance home- and community-based care, breaking down traditional barriers to health and wellness. This integrated approach is expected to improve health outcomes by addressing the multifaceted needs of NJ FamilyCare members.

For more information about the Healthy Homes program and application details, prospective applicants can access resources here.

This initiative not only aims to provide direct housing assistance but also seeks to fortify the overall health and well-being of New Jersey's most vulnerable populations by ensuring they have access to safe and stable housing.