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Bill > A2931


NJ A2931

NJ A2931
Authorizes shared service agreements to facilitate provision of affordable housing.


summary

Introduced
01/13/2026
In Committee
01/13/2026
Crossed Over
Passed
Dead

Introduced Session

2026-2027 Regular Session

Bill Summary

This bill authorizes the use of shared service agreements by municipalities to meet affordable housing needs established by the "Fair Housing Act," P.L.1985, c.222 (C.52:27D-301 et al.). The bill authorizes a municipality to enter into a shared service agreement with any other municipality or municipalities in the State to transfer a portion of the fair share affordable housing obligation of one or more sending municipalities to one or more receiving municipalities. The bill provides that a shared service agreement between one or more sending and receiving municipalities is to be permissible regardless of whether the sending and receiving municipalities are in the same housing region. The bill prohibits a municipality from entering a shared service agreement to transfer more than 50 percent of its obligation to any one receiving municipality. The bill requires a shared service agreement to be approved by the Department of Community Affairs (DCA). After approval of a shared service proposal by DCA, an approval determination signed by the Commissioner of Community Affairs (commissioner), would be submitted, along with the shared service proposal, to the Attorney General and the Division of Local Government Services in DCA. The bill also requires the Attorney General to also review the proposal to ensure that the inclusionary requirements established by the Supreme Court in its Mount Laurel decisions are not violated. The bill would require payments associated with shared service agreements to be submitted by the sending municipality to DCA. Before the department forwards a payment to the receiving municipality, the payment details would be reviewed and approved by the Attorney General.

AI Summary

This bill allows municipalities to enter into "shared service agreements" with other municipalities to transfer a portion of their affordable housing obligations, as established by the "Fair Housing Act," which mandates that each municipality provide a realistic opportunity for a fair share of housing for low- and moderate-income families. These agreements can be made between municipalities in different housing regions, but no municipality can transfer more than 50% of its obligation to any single receiving municipality. Before any agreement can be finalized, it must be approved by the Department of Community Affairs (DCA), and then reviewed by the Attorney General to ensure it complies with the constitutional requirements for affordable housing, known as the "Mount Laurel" doctrine. Payments associated with these agreements will be sent by the municipality transferring its obligation (the "sending municipality") to the DCA, which will then forward them to the receiving municipality after the Attorney General's review.

Committee Categories

Housing and Urban Affairs

Sponsors (1)

Last Action

Introduced, Referred to Assembly Housing Committee (on 01/13/2026)

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