Bill > S3962

Introduced Session

This bill requires the State Treasurer to annually compensate certain municipalities for costs related to low- and moderate-income housing units that the municipalities commit to providing. The needs of local roads, schools, water utility services, and other infrastructure, are increasingly challenging for many municipalities as a result of the "Fair Housing Act," P.L.1985, c.222 (C.52:27D-301 et al.), as revised by the recent enactment of additional legislation, P.L.2024, c.2 (C.52:27D-304.1 et al.). These infrastructure costs, along with the costs of planning services, and other costs necessary for compliance with these statutes, may be more extensive than can fully be addressed through the "New Jersey Affordable Housing Trust Fund," or municipal affordable housing trust funds. This bill is intended to respond to the extensive unfunded financial burdens that are being shouldered by municipalities. The bill directs the State Treasurer to provide $75,000 to the Local Infrastructure and Planning Fund of a municipality for each unit of low- or moderate-income housing that the municipality commits to, as reflected in the municipality's housing element and fair share plan. The payment is to be provided to municipalities that have obtained certification for the current round of affordable housing obligations. The total sum of all $75,000 payments owed to a municipality for a 10-year round of affordable housing obligations, is to be divided by 10, and provided in equal amounts, each year, to each municipality's Local Infrastructure and Planning Fund beginning in the first full calendar year of a round of affordable housing obligations, meaning 2026 for the upcoming fourth round. If a municipality initially obtains compliance certification later than the first year of the 10-year round of affordable housing obligations, the bill requires that the total sum of all $75,000 payments owed to a municipality pursuant to the bill are to be concentrated and provided to a municipality in accordance with rules and regulations adopted by the State Treasurer. The bill provides that a municipality that obtains compliance certification for its housing element and fair share plan, is to establish a Local Infrastructure and Planning Fund, to be kept separate from other municipal funds, for the purpose of depositing and maintaining monies received for the purposes of this bill. The bill permits a municipality to expend monies in the Local Infrastructure and Planning Fund on planning services, attorney's fees, and court costs related to compliance with "Fair Housing Act." The bill also permits a municipality to expend monies in the Local Infrastructure and Planning Fund on operational and capital costs for local infrastructure that may be affected by the construction of affordable housing, including school, transportation, and water infrastructure. The bill directs the State Treasurer to adopt rules and regulations to effectuate the purposes of the bill. The bill takes effect immediately upon enactment.

Committee Categories

Jon Bramnick (R)*,  Tony Bucco (R)*,  Latham Tiver (R), 

Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee (on 12/16/2024)

Official Document