New Jersey Releases Affordable Housing Calculations for Municipalities

The New Jersey Department of Community Affairs outlines detailed methodology and projected needs for affordable housing across the state.

MORRISTOWN, NJ – In a major step towards addressing the state's housing crisis, the New Jersey Department of Community Affairs (DCA) has released comprehensive calculations of municipal obligations for affordable housing for the decade 2025-2035. These calculations adhere to the mandates set by the landmark Affordable Housing Law signed into law by Governor Phil Murphy in March 2024.

The data published offers non-binding guidance to all 564 municipalities in New Jersey, detailing their current and prospective needs for low- and moderate-income housing as dictated by the law's new framework. This framework is designed to align with the Mount Laurel doctrine and the State’s Fair Housing Act, ensuring that the needs for affordable housing are met systematically and fairly across the state.

“I am grateful to the New Jersey Department of Community Affairs for their timeliness in calculating this data and their partnership in advancing our shared goal of expanding access to affordable housing,” said Governor Murphy. “We look forward to seeing this law implemented and benefiting families across the Garden State.”

“The calculations help address New Jersey’s housing shortage by equipping municipalities with clear numbers so they can better plan on how to provide affordable housing options in their communities,” said DCA Commissioner Jacquelyn A. Suárez. “The new law provides a unique opportunity to develop ‘missing middle’ housing—options like townhouses, duplexes, and other types of multi-family units that bridge the gap between single-family homes and large apartment complexes, offering the diverse housing choices that New Jersey families desire and need.”

DCA's methodology involves a detailed, multi-faceted approach incorporating the latest data from the U.S. Census and the American Community Survey among other sources. The process meticulously calculates both 'Present Need'—the existing deficiency in housing units for low- and moderate-income families—and 'Prospective Need'—the projected requirement based on anticipated changes in household numbers over the next decade.

For Present Need, the calculation identifies substandard housing units lacking in essential facilities like complete kitchens and plumbing or those that are overcrowded. For Prospective Need, it considers factors like changes in household numbers between the 2010 and 2020 censuses, adjusted by a factor of 2.5 to estimate the number of new low- and moderate-income homes required.

To support municipalities in planning their affordable housing strategies, the DCA has outlined mechanisms for receiving "bonus credits" for affordable housing units under certain conditions, such as proximity to mass transit or designation for special needs housing. The calculations also provide a cap on the number of units, ensuring that obligations do not overwhelm municipal resources.

The DCA’s release underscores a robust commitment to not just addressing the need for affordable housing, but also ensuring that all municipalities have clear, actionable data to plan effectively. This initiative is bolstered by significant financial backing, including over $108 million allocated through various funding programs aimed at supporting these housing initiatives.

Looking forward, the DCA is preparing to launch the NJ Housing Opportunities for Municipal Equity and Success (NJHOMES) initiative in early 2025. This program will provide additional support for municipalities to develop housing solutions that cater to a diverse range of community needs, promoting the development of walkable, vibrant communities across New Jersey.

Through detailed planning, significant funding, and a focus on community-specific needs, New Jersey aims to set a benchmark for states across the nation in addressing the critical issue of affordable housing.