NJ has a law that could create more affordable housing. Why isn't it enforced?

New Jersey isn’t taking full advantage of a tool at its disposal to build more affordable housing in the state, the nonprofit Fair Share Housing Center argues in a report released Wednesday.

Under amendments to the state’s Fair Housing Act passed in July of 2008, New Jersey requires that 20% of newly-built units be reserved for low- and moderate-income families if the development is financed with state funds or on property owned by the state.

Fair Share argues in its report, “Untapped Resources,” that “little has been done to implement and enforce this provision,” and outlined examples of developments that should have this affordable set-aside, which would offer lower rents for families making below the median income of their communities, typically allowing them to spend one-third of their monthly paychecks on housing costs.

New Jersey agencies should issue clear guidance to make sure developers are complying with this rule, the nonprofit argued, and recommended that the state identify state-owned land that could be used to build affordable housing. It’s similar to a goal Mayor Ras Baraka announced in Newark in August 2021 for the city to convert suitable city-controlled vacant property into housing with 30% of the units reserved for families making under 80% of the city’s median income.

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“No new legislation is required, and with more active enforcement of the law, New Jersey can potentially develop thousands of new affordable homes that will help create healthier, fairer, and more integrated communities throughout our state,” wrote Adam Gordon, executive director of Fair Share Housing Center.

The nonprofit described projects where state funds or state properties were used for developments, but 20% of the units were not set aside for low-income families, such as the Somerset Station Transit Village in Somerset County. The borough bought the property from NJ Transit and plans to build 370 apartments with 4,000 square feet of retail space and a 4,000 square foot development center and “does not currently include any affordable housing despite NJ Transit’s involvement,” the report said.

Plans for developments in Sayreville and Haddon did not require any affordable housing until Fair Share Housing Center filed lawsuits, the report said, and now the Sayreville Riverton Condos and Haddon Towne Center each include plans for 15% of units to be affordable.

“The path to safeguarding affordable housing has been arduous, costly, and has resulted in compromises that could have been avoided if the law had been clearly enforced from the start by state agencies when they provided funding and/or land to these developments,” the report said.

The nonprofit also identified 37 state-owned parcels of land it said could be opportunities for affordable housing development, after analyzing more than 120,000 pieces of land owned by New Jersey and removing sites that “had limited development potential” or were located on preserved land. The nonprofit’s proposals can be viewed online at arcg.is/rHOfG0.

“With a shortage of over 200,000 affordable homes and over 14,000 households experiencing homelessness every year, [New Jersey] must do better,” said Taiisa Kelly, CEO of Monarch Housing Associates. “Coordinating the state’s resources to create housing opportunities for everyone by fully implementing existing requirements and dedicating land to this work is one way the state can show its commitment to house New Jersey.”

This article originally appeared on NorthJersey.com: NJ could have more affordable housing if it enforced this law: Report