New Jersey is putting $45 million back into its Affordable Housing Trust Fund after lawmakers slashed most of its funding during state budget negotiations earlier this year.
The $125 million fund was reduced to just $5 million in June, sparking backlash from housing advocates, developers, and local leaders who rely on the program to address the state’s shortage of low-priced homes.
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The NJ Department of Community Affairs (DCA) confirmed the restoration, saying the funds will cover 10 to 20 affordable housing projects. Of that, $10 million will go to Habitat for Humanity to build homes for low- and middle-income families.
“Creating affordable housing remains one of the department’s highest priorities,”
said DCA Commissioner Jacquelyn A. Suárez.
“Through the Affordable Housing Trust Fund, we are investing in projects that not only create safe and stable homes, but also strengthen communities.”
Application Process Reopens
The DCA will restart the trust fund application process on Sept. 5, with a deadline of Oct. 3. Developers can apply for up to $3 million per project, but those who previously submitted proposals must reapply.
Impact on Habitat for Humanity and Local Projects
Liz DeCoursey, CEO of Greater Middlesex & Morris Habitat for Humanity, called the move “great news” and a “step in the right direction” but stressed that it’s not enough.
Her organization had dozens of projects on hold due to the funding cuts. Projects exceeding the $3 million cap, like one in Old Bridge with a $4 million shortfall, may need to be completed in phases.
State Sen. Owen Henry, the former mayor of Old Bridge, previously called the cuts “asinine” and pushed for full funding restoration.
Push for Full Funding Continues
Advocates say restoring only $45 million—less than half the original fund—still leaves a significant gap.
Matthew Hersh, vice president of policy and advocacy at the Housing and Community Development Network of New Jersey, said his organization will keep fighting to restore the full $125 million.
The state plans to build over 80,000 affordable homes in the next 10 years under a 2024 housing law, but advocates warn progress will be slow unless the trust fund is fully replenished.
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