New Jersey partially restored a fund dedicated to building affordable housing in the state after it was gutted in budget negotiations earlier this year.
The state’s $125 million Affordable Housing Trust Fund was reduced to just $5 million during June budget negotiations. Officials said last week that $45 million will be returned to the Affordable Housing Trust Fund after months of pushback from advocacy groups and lawmakers.
“We applaud this down payment toward addressing the housing needs of low- and moderate-income families, seniors, and people with disabilities,” Matthew Hersh, vice president of policy and advocacy for the Housing and Community Development Network of New Jersey, said in a statement.
Hersh noted his organization would continue fighting to get all funding restored.
The trust fund helps municipalities across the state finance affordable housing construction for low- and moderate-income residents. A state law passed in 2024 to address New Jersey’s housing crisis included a plan to build more than 80,000 low-priced homes over the next 10 years.
The New Jersey Department of Community Affairs, which restored the funding, said it was enough for 10 to 20 affordable housing projects and that $10 million of the restored funds would be reserved for Habitat for Humanity.
“Creating affordable housing remains one of the department’s highest priorities,” Department of Community Affairs Commissioner Jacquelyn A. Suarez told Gothamist. “Through the Affordable Housing Trust Fund, we are investing in projects that not only create safe and stable homes, but also strengthen communities.”
Democratic state Sen. Britnee Timberlake had introduced legislation last month that would restore the full $125 million.
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“This is more than a financial decision; it’s a moral imperative. These funds directly support working families, seniors, and vulnerable residents across New Jersey. When we invest in housing, we invest in stability, dignity, and the economic future of all communities. Affordable housing doesn’t materialize on good intentions alone, it demands consistent, deliberate funding,” she said in a statement.
Other state lawmakers and elected officials were critical of the diversion of funds. Housing advocates have also urged lawmakers to pass legislation that would dedicate at least half of the newly enacted “Mansion Tax” revenue to the Affordable Housing Trust Fund.