Bill
Bill > A5490
NJ A5490
NJ A5490"Closing the Segregated Housing Loophole Act"; prohibits segregation in affordable housing inclusionary developments.
summary
Introduced
03/20/2025
03/20/2025
In Committee
03/20/2025
03/20/2025
Crossed Over
Passed
Dead
01/12/2026
01/12/2026
Introduced Session
2024-2025 Regular Session
Bill Summary
The "Closing the Segregated Housing Loophole Act" prohibits segregation in new inclusionary developments containing both market-rate and affordable units. The bill addresses the issue of segregated housing in New Jersey, particularly within affordable housing developments that include both market-rate and affordable units. The bill prohibits segregation in inclusionary developments by prohibiting a developer of such housing from creating separate entrances, amenities, or other features that would segregate residents based on whether a resident occupies an income-restricted unit, or other protected characteristics. The bill further prohibits a municipal approving authority or zoning officer from approving a development which segregates residents in violation of the bill's provisions. The bill establishes that an affordable unit existing within a new, pending, or proposed inclusionary development found to segregate is not to be counted towards a municipality's fair share affordable housing obligation. Further, a municipality which approves a development which violates the provisions of the bill shall be subject to penalties and enforcement mechanisms imposed by the Commissioner of Community Affairs (commissioner). The bill requires the commissioner to establish mechanisms that provide authority:· to an interested party to file a complaint with the Department of Community Affairs, alleging that a development has been approved, or is being constructed, that is in violation of the bill; and· to the department to investigate a complaint, and require a violation to be corrected. The bill directs the commissioner to adopt rules and regulations on or before the first day of the sixth month following the bill's enactment. The bill takes effect on the first day of the 10th month following enactment.
AI Summary
This bill aims to address housing segregation in New Jersey by prohibiting discriminatory practices in inclusionary developments, which are housing projects that contain both market-rate and affordable units. The legislation prevents developers from creating separate entrances, amenities, or other features that would segregate residents based on their income level or other protected characteristics such as race, color, religion, sex, or national origin. Municipal authorities are prohibited from approving development plans that include such segregation, and any municipality that approves a segregated housing development will be subject to penalties established by the Commissioner of Community Affairs. The bill establishes a mechanism for interested parties to file complaints with the Department of Community Affairs if they believe a development violates these anti-segregation provisions, and allows the department to investigate and require corrections. Furthermore, any affordable housing units in a development found to be segregated will not count towards a municipality's affordable housing obligation, unless the development application was approved prior to the bill's enactment. The Commissioner of Community Affairs is required to develop implementing regulations within six months of the bill's passage, and the bill will take effect ten months after enactment, providing time for developers and municipalities to adjust to the new requirements.
Committee Categories
Housing and Urban Affairs
Sponsors (1)
Last Action
Introduced, Referred to Assembly Housing Committee (on 03/20/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/A5490 |
| BillText | https://pub.njleg.gov/Bills/2024/A5500/5490_I1.HTM |
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