Bill > S3410

Introduced Session

This bill establishes the "Entry-Level Home Production Incentive Program" (program) in the New Jersey Housing and Mortgage Finance Agency (agency) for the purpose of funding the project financing gaps, as defined in the bill, for development projects that include low- to middle-income housing. The bill defines "low- to middle-income housing" as housing affordable according to certain recognized standards for home ownership and rental costs, and reserved for occupancy by households with a gross household income not exceeding 120 percent, of the area median income, unless the bill expressly specifies a different percentage. The project financing gap funding required by the bill is to be provided though production assistance, and the provision of infrastructure loans. Production assistance is to be provided by the agency in the form of gap grants of up to $40,000 per unit of low- to middle-income housing reserved for occupancy by households with a gross household income not exceeding 100 percent of the area median income, and $70,000 per unit of low- to middle-income housing reserved for occupancy by households with a gross household income not exceeding 100 percent of the area median income. The bill directs the New Jersey Economic Development Authority (authority) to provide project financing gap funding through infrastructure loans, as one- to three-percent fixed-rate loans for up to 20 percent of project costs, for development projects, if no fewer than 20 percent of the dwelling units in the project consist of low- to middle-income housing. The bill establishes a fund in the agency to be known as the "Entry-Level Home Development Fund" (fund) for the purpose of providing the moneys necessary for the program. At the request of the authority, the bill requires the agency, on an annual basis, to provide no less than one-third of the moneys annually appropriated to the fund to the authority for the provision of infrastructure loans. The bill prohibits the provision of project financing gap funding through the program to any development project unless:· the developer commits to occupancy requirements to ensure that the initial purchaser of a low- to middle-income housing unit is to occupy the unit for no less than five years, or pay a penalty to the agency of $10,000; and· the dwelling units that are initially sold as low- to middle-income housing units are reserved for occupancy as low- to middle-income housing for no less than 10 years following initial occupancy. The bill requires project financing gap funding to be prioritized for development projects that:· are within a municipality that has adopted an ordinance to establish overlay zoning, allowing small-lot duplexes, triplexes, or townhome development, in accordance with the provisions of a model ordinance adopted by the agency through the rules and regulations adopted as required by the bill;· are women's businesses or a minority businesses, as defined in the bill;· satisfy energy efficiency standards adopted through rules and regulations of the agency; or· consist of industrialized or modular buildings. The bill requires the agency, in consultation with the authority, to annually prepare a report to the Governor, and the Legislature, presenting certain information, including:· the number of housing units produced with the assistance of program support;· the income restrictions provided for the housing units produced;· the amount of funding extended in the form of production assistance, and as infrastructure loans; and· such additional information as the agency determines appropriate. The bill directs the agency and authority to adopt rules and regulations necessary to effectuate the provisions of the bill. \ The bill requires an appropriation of $300 million from the General Fund to the Entry-Level Home Development Fund in the agency. The bill is to take effect on the first day of the third month following enactment.

AI Summary

Committee Categories

Angela Mcknight (D)*,  Troy Singleton (D)*, 

Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee (on 02/09/2026)

Official Document