Bill > S2960

Introduced Session

This bill establishes a program to incentivize municipalities to amend their master plans and development regulations by incorporating therein certain housing strategies for the purpose of enhancing the development potential of property for residential purposes at greater densities. Under the bill, the governing body of a municipality that is interested in qualifying for preferential status in the distribution of State aid pursuant to the bill may direct the municipal planning board to undertake and provide for a special reexamination of the municipality's master plan and development regulations. A planning board directed to undertake and provide for a special reexamination of the municipality's master plan and development regulations is to, at a minimum, review the provisions of the municipality's existing master plan and development regulations that address areas of the municipality within which residential development is permitted, and consider recommending specific changes to the master plan and development regulations for the purpose of enhancing the potential development of the municipality for residential purposes. The bill provides that a planning board undertaking a special reexamination of the municipality's master plan and development regulations is to consider whether to include in the master plan and development regulations one or more housing strategies that may enhance the development potential of property for residential purposes at greater densities. The bill identifies the following housing strategies to be considered by a planning board conducting a special reexamination: · permit development of an accessory dwelling unit in addition to a single-unit dwelling on developable lots in areas restricted to the development of single-unit dwellings;· permit development of a two-unit dwelling on lots in areas restricted to the development of single-unit dwellings;· permit development of a three-unit dwelling on lots in areas restricted to the development of single-unit dwellings;· eliminate or reduce off-street parking requirements; · eliminate or reduce minimum lot size requirements;· permit the siting of manufactured housing or a mobile home on lots in areas restricted to the development of single-unit dwellings;· permit development of a multi-unit dwelling or a mixed-use development on lots zoned exclusively for office, retail, or commercial uses; · permit development of a multi-unit dwelling on at least 10 percent of the developable land within the municipality;· permit higher density housing near transit stops; and· eliminate or reduce minimum size requirements for dwelling units. A planning board that has undertaken a special reexamination of the municipality's master plan and development regulations is required to prepare and adopt by resolution a report on the findings of the special reexamination. If a special reexamination report recommends changes to a municipality's existing master plan, the bill requires the planning board to commence the process of amending the master plan in accordance with the requirements for amendment of a master plan under P.L.1975, c.291 (C.40:55D-1 et seq.). This procedure requires the planning board to hold a hearing on the proposed amendments after providing public notice of the hearing. If a planning board amends a master plan pursuant to the bill, the governing body of the municipality is required to commence the process of considering amendment of the municipality's zoning ordinance under P.L.1975, c.291 (C.40:55D-1 et seq.) for the purpose of making the ordinance substantially consistent with the land use plan element and the housing plan element of the municipality's master plan. The bill directs the Department of Community Affairs (DCA) to establish a preference in the award of State aid for those municipalities that have amended their development regulations pursuant to the bill to allow for the use of additional housing strategies and have thereby increased the number of housing units permitted for development. The preference is to apply to all types of competitively-awarded financial assistance that the DCA may distribute to one or more municipalities pursuant to a program administered by the DCA, other than a program that awards funds to help a municipality fulfill its fair share housing obligation. The bill specifically identifies the Main Street New Jersey Program, established pursuant to P.L.2001, c.238 (C.52:27D-452 et seq.), and the Neighborhood Preservation Program, established pursuant to P.L.1975, c.248 (C.52:27D-142 et seq.) as State aid programs subject to the bill's provisions. Additionally, the bill directs the DCA to: research and analyze each grant or other type of competitively-awarded financial assistance awarded to municipalities by State agencies, and enter into a memorandum of understanding with each State agency that awards a grant or other type of competitively-awarded financial assistance to municipalities for the purpose of establishing a preference in the award of a grant or other type of competitively-awarded financial assistance for those municipalities that have amended their master plans and development regulations to allow for the use of additional housing strategies, and which have thereby increased the number of housing units permitted for development in the municipality. The bill directs the DCA to adopt rules and regulations it deems necessary or desirable to effectuate these provisions of the bill, and provides that the rules and regulations are to: · specify the numbers of additional housing units and the types of housing strategies appropriate for use by a municipality based upon the municipality's planning region, as identified within the most recently adopted State Development and Redevelopment Plan; · specify a range of values to be accorded to municipalities determined to be eligible for a preference in State aid under the bill based upon the number of housing units permitted for development and the types of housing strategies adopted; and· provide model ordinance provisions, in the form of templates, for the purpose of assisting municipalities opting to incorporate one or more of the housing strategies identified in the bill into their ordinances. Additionally, the bill provides that the Commissioner of Transportation, in determining the allocation of funds for municipal projects from the "Transportation Trust Fund Account" is to establish a criterion to provide, at the commissioner's discretion, priority consideration to municipalities that implement the provisions of this bill, within the schedule of all other criteria for prioritization. Current law provides that that the Commissioner of Transportation may consider several criteria in allocating monies from the Transportation Trust Fund for county and municipal transportation projects. Finally, the bill permits increases in a school district's district aid percentage for the purposes of the calculations of the State share of a school facilities project for those municipalities that implement the provisions of this bill. The bill permits increases to a school district's district aid percentage of no more than 10 percent if the school district is within a municipality that has implemented the provisions of the bill. Under the bill, a regional school district may be eligible for a district aid percentage increase if one or more constituent municipalities of the district has implemented the provisions of the bill. The increase for a regional district, however, may not exceed 10 percent, and the maximum district aid percentage increase due to any one constituent municipality's implementation of the bill is to be calculated in proportion to the constituent municipality's share of the overall resident enrollment of the regional school district. The bill directs the Commissioner of Education and the Commissioner of Community Affairs to develop a uniform methodology to determine the district aid percentage increase for school districts if a municipality has implemented the provisions of the bill.

AI Summary

Committee Categories

Raj Mukherji (D)*, 

Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee (on 01/13/2026)

Official Document