Bill
Bill > S2458
NJ S2458
NJ S2458Adjusts method of determining regional need for affordable housing; permits timeline extension for municipalities to determine and plan for adjusted fair share obligations based on revisions to regional need.
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
This bill adjusts the method, as established in P.L.2024, c.2 (C.52:27D-304.1 et al.), for determining the regional need for affordable housing, and permits timeline extensions for municipalities to determine and plan for adjusted fair share obligations based on the revisions to the regional need. The "prospective need" methodology that has been established for the fourth round and all future rounds of affordable housing obligations, through the enactment of P.L.2024, c.2 (C.52:27D-304.1 et al.), does not appear to result in realistic regional and municipal affordable housing obligations, but in excessive and unrealistic obligations. This bill changes the methodology for determining regional need to base the calculation on objective housing market data that can be clearly understood and easily quantified. The bill directs the Department of Community Affairs (department) to determine the prospective need for a region's 10-year round of low- and moderate-income housing obligations by ascertaining the number of certified residential housing units, as determined by the data assembled by the department, for new residential units in the region, excluding new residential units that replace demolished residential units, between the most recent federal decennial census and the second-most recent federal decennial census. The bill directs the department to divide that number by five, the quotient of which is to constitute the number of low- and moderate-income homes that can realistically be provided through inclusionary zoning in the region for the 10-year round. This figure is to represent the regional need for each of the six regions of the State. In addition to recalculating regional need, the bill directs the Commissioner of Community Affairs to revise the estimates of a municipality's prospective fair share obligation of the regional prospective need for the upcoming 10-year round, based on the changes to the regional need determinations. The bill directs that all municipalities that have already committed to a fair share obligation at the time of the enactment of the bill are to have their obligations adjusted to the fair share obligation established by the department, in accordance with the standards set forth in the bill, for determining the prospective regional need. A municipality is to be provided with 90 days from the receipt of revised fair share obligation estimates from the department, to file amended housing element and fair share plans addressing the adjusted obligation number. The bill authorizes the department to comply with the requirements of the bill as soon as possible, notwithstanding the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.). The bill permits the department to revise the deadlines for municipal compliance with the fourth round requirements, as necessary, considering the bill's adjustments to the date of the publication of regional need. The bill also repeals and replaces the findings section of the "Fair Housing Act," (FHA) P.L.1985, c.222 (C.52:27D-301 et al.). The bill takes effect immediately.
AI Summary
This bill adjusts how the regional need for affordable housing is calculated, aiming to create more realistic housing obligations for municipalities. Previously, the method for determining this "prospective need" (the anticipated need for affordable housing over a 10-year period) was seen as excessive. The bill changes this calculation by having the Department of Community Affairs (DCA) count the number of new residential housing units built in a region between the two most recent federal decennial censuses, excluding those that replaced demolished units, and then dividing that number by five. This new figure will represent the regional need for affordable housing. The bill also allows municipalities to receive extensions for planning and meeting their adjusted "fair share" obligations, which are their portion of the regional need, and gives them 90 days after receiving revised estimates from the DCA to submit updated housing plans. Importantly, any municipalities that had already committed to a fair share obligation before this bill becomes law will have their obligations recalculated based on the new methodology. The bill also allows the DCA to implement these changes quickly, bypassing some standard administrative procedures, and revises the findings section of the Fair Housing Act (FHA), a law established in 1985 to address affordable housing obligations.
Committee Categories
Housing and Urban Affairs
Sponsors (4)
Last Action
Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee (on 01/13/2026)
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/2026/S2458 |
| BillText | https://pub.njleg.gov/Bills/2026/S2500/2458_I1.HTM |
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