Bill > S1830

Introduced Session

This bill, designated as the "New Jersey Workforce Housing Partnership Act," incentivizes employers to provide financial assistance to certain employees buying homes, provides tax credits for the development of certain workforce housing projects, and provides certain assistance and affordability protections for low- and moderate-income residents. The Workforce Housing Assistance Program The bill requires the New Jersey Economic Development Authority (authority) to establish a "Workforce Housing Assistance Program" (program) to provide incentives to qualified employers related to the provision of workforce housing assistance to qualified employees. The program consists of two components: (1) the provision of matching contribution grants for down-payment assistance provided by a qualified employer to one or more qualified employees; and (2) the provision of low-interest mortgage loans and loan guarantees to the qualified employees of a qualified employer for the purchase of workforce housing in this State. Under the bill, qualified employers are required to apply to the authority to participate in the program before the qualified employees of the employer may receive benefits under either component of the program. As defined in the bill, "qualified employee" means a full-time employee of a qualified employer who has worked for the qualified employer for a minimum of one calendar year prior to the employer's date of application for the program, which employee is middle-income or a member of a middle-income household. "Qualified employer" means a person or business entity doing business in the State, which person or business entity employs one or more qualified employees residing within this State. "Workforce housing" means housing that is affordable, according to federal Department of Housing and Urban Development or other recognized standards, for home ownership and rental costs and that is occupied or reserved for occupancy by households with a gross household income not more than 120 percent of the median gross household income for households of the same size within the housing region in which the housing is located. The bill authorizes the provision of matching contribution grants for distribution to qualified employees who receive a financial contribution of at least $5,000 from a qualified employer toward a down payment for the purchase of a workforce housing unit. However, to qualify for the matching contribution grant, the purchase of the workforce housing unit is required to occur within 12 months following the qualified employer's approval for the program, and the property is required to be occupied as the qualified employee's principal residence. Under the bill, the amount of the matching contribution grant is to equal: (1) for a qualified employer that employs 50 or more employees, an amount equal to the financial contribution paid by the qualified employer to the qualified employee, but not to exceed $10,000 per employee; or (2) for a qualified employer that employs fewer than 50 employees, in an amount equal to 200 percent of the financial contribution paid by the employer to the qualified employer, but not to exceed $15,000 per employee. In addition to receiving grants under the program, this bill authorizes qualified employees of a qualified employer that is approved to participate in the program to apply to the authority for a low-interest mortgage loan or loan guarantee for the purchase of a workforce housing unit, which purchase occurs within 12 months of the date of approval of the qualified employer's application for the program, and which housing is to be occupied as the qualified employee's primary residence in this State. The bill also provides corporation business tax and gross income tax credits for qualified employers that provide financial contributions for down payment assistance to qualified employees, in accordance with the requirements of the program. Under the bill, the tax credits are to be issued in an amount equal to 25 percent of the amount of the taxpayer's financial contributions, not to exceed $500,000 during a tax period. However, for a taxpayer that employs fewer than 50 employees, an additional amount of tax credits is available equal to 10 percent of the amount of the taxpayer's financial contributions paid in excess of $5,000 to each qualified employee during a tax period. Periodic Program Review and Funding of the Program This bill appropriates $50 million to the "Workforce Housing Assistance Program Fund," which is established under the bill for the purposes of providing grants, low-interest loans, and loan guarantees under the program. Under the bill, the authority, in coordination with the New Jersey Housing and Mortgage Finance Agency (agency), is required to review on the effectiveness of the program every three years, which review is to include: (1) the impact of the program on employee retention in the State; (2) the rates of participation in the program by qualified employers; (3) the rates of participation in the program by qualified employers with fewer than 50 employees; (4) the rates of homeownership by qualified employees in the State; and (5) any other measure by which the authority determines the success of the program may best be studied. The authority, in coordination with the agency, is required to report its findings and recommend the continuation, modification, or termination of the Workforce Housing Assistance Program, including any recommended changes to funding for the program, to the Governor and the Legislature.Workforce Housing Development Incentive This bill provides for incentive awards in the form of tax credits, and potentially tax abatements, for qualified employers that convert underutilized commercial property into a workforce housing project. The bill defines "workforce housing project" as a residential housing project developed or financed by a qualified employer that primarily includes workforce housing and includes a minimum set-aside of 20 percent of units for households earning not more than 80 percent of the area median income determined by the federal Department of Housing and Urban Development. To receive an incentive award for the development of a workforce housing project, a qualified employer is required to demonstrate the following in an application to the authority: (1) the applicant is a qualified employer that seeks to convert underutilized commercial property into a workforce housing project; (2) evidence satisfactory to the authority that the development of the workforce housing project is in compliance with applicable State and federal laws and safety standards; (3) the anticipated project costs to be incurred by the qualified employer in developing the workforce housing project; (4) assurances deemed satisfactory to the authority that a minimum of 20 percent of units in the project will be set aside for low- and moderate-income households; and (5) any other information required by the authority. Under the bill, a developer that executes an incentive award agreement with the authority may receive tax credits as authorized under the agreement, subject to the approval of annual compliance reports submitted to the authority. After issuance of the certificate of compliance by the authority, the taxpayer is permitted to claim tax credits in an amount not to exceed 15 percent of approved project costs, as defined in the bill, for the development of a workforce housing project, which credits may be claimed over the course of an eligibility period, as determined by the authority. The bill also allows a taxpayer to apply for a tax credit transfer certificate so that all or part of the credit awarded may be sold or assigned to a third-party purchaser. Additionally, the bill authorizes a municipality to adopt an ordinance granting an abatement or exemption from taxation, or both, for property in development for the purpose of workforce housing a developer that converts underutilized commercial property into workforce housing or develops on-site workforce housing for qualified employees. If such ordinance is adopted, a developer may be eligible for a five-year tax abatement as described in the bill, subject to the requirement to make payments in lieu of taxes to the municipality. Zoning and Permitting Requirements The bill authorizes the adoption of certain municipal ordinances and requires that the adoption of such ordinances be a priority consideration for the Commissioner of Transportation (commissioner) when determining allocations of certain transportation funding for municipal projects within each county. Specifically, the bill provides that under the local aid program, the commissioner is required to determine priority for the funding, after the amount of aid has been allocated based primarily on the statutory formula, based upon whether a municipality has adopted an ordinance that permits the development of certain accessory dwelling units, development of duplexes and triplexes in an area zoned for single-family residential use, or mixed-use development. The commissioner remains required, as under current law, to consider criteria relating to volume of traffic, safety considerations, growth potential, readiness to obligate funds, and local taxing capacity. Additionally, this bill accelerates the processing timelines for certain permits necessary to the development of workforce housing. Workforce Housing Impact Relief Program The bill establishes a "Workforce Housing Impact Relief Program" (relief program) in the authority for the purpose of providing grants, in such amounts as may be determined by the authority, to certain long-term homeowners that reside in municipalities impacted by the development of one or more workforce housing projects. An individual is eligible for the relief program, provided that only one application may be approved in any household in any calendar year, if: (1) the individual's household earns not more than 80 percent of the area median income determined by the federal Department of Housing and Urban Development; and (2) the individual's primary residence is located in a municipality impacted by the development of workforce housing under the bill, and the individual has owned the principal residence for not less than 10 years prior to the date of application for the relief program. To fund these grants, the bill appropriates $5 million to the "Workforce Housing Impact Relief Fund," which the authority is to establish pursuant to the bill.

AI Summary

Committee Categories

Troy Singleton (D)*,  Benjie Wimberly (D)*, 

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

Official Document