Bill > S2312

This bill allows housing projects that receive funding from the State or municipal affordable housing trust fund to be exempt from property taxes, and instead, these projects will make payments in lieu of taxation to contribute to municipal services. This means that instead of paying traditional property taxes, these affordable housing developments will make a negotiated payment to the municipality, which can be up to 20% of their annual gross revenue, or a minimum of 4% of annual gross revenue or the amount of taxes attributable to the land value component of the property before the project began. The bill also clarifies that these tax exemptions can continue beyond the repayment of any loans for the project if the housing remains subject to affordability controls, such as through federal rental assistance or specific affordability standards. These provisions are being added to existing laws that govern the New Jersey Affordable Housing Trust Fund and municipal development fees, which are funds collected from developers to support affordable housing initiatives.

Budget and Finance, Housing and Urban Affairs

https://www.njleg.state.nj.us/bill-search/2024/S2312