TRENTON – To address the housing shortage and expand opportunities for affordable living across New Jersey, the Senate passed legislation sponsored by Majority Leader M. Teresa Ruiz, Senate President Nick Scutari, Senator Troy Singleton, Senator Linda Greenstein, and Senator Shirley K. Turner that would provide $500 million in tax credits to the New Jersey Mortgage Finance Agency (HMFA) to sell at auction and utilize the proceeds to support low and moderate income housing development in addition to middle-income workforce housing development in the state.

“The people who keep our communities running—teachers, nurses, construction workers, police officers, and countless others—are working hard to make a living, yet still struggling under the weight of housing costs. To truly address New Jersey’s housing crisis and ensure every family has a place to call home, we need a comprehensive approach—one that expands both designated affordable housing and increases options for middle-income families who don’t qualify for assistance but are still priced out,” said Majority Leader Ruiz (D-Essex/Hudson). “This bill will help towns fulfill their affordable housing obligations and will stimulate middle-income housing development to close this gap in the market. This is a long-term investment that will give families more room in their budgets and allow them to continue living in their communities for years to come.”

“The rising cost of living is fueling workforce shortages in sectors like education, healthcare, and the trades,” said Senate President Scutari (D-Union/Somerset). “One of the barriers these workers face is the exorbitant cost of housing. To expand and sustain our workforce, we must help ensure that low and middle-income families have access to homes they can afford. These tax credits will help increase housing stock for these essential workers.”

“Working and middle-class families are the backbone of New Jersey’s economy, yet far too many are being priced out of the communities they serve. This legislation is a smart, targeted solution that not only creates housing they can afford but also strengthens local economies, reduces workforce turnover, and keeps our neighborhoods thriving. Assisting municipalities in reaching their affordable housing obligations and stimulating middle-income housing development is an investment in the long-term health and stability of our state,” said Senator Singleton, who chairs the Senate Community and Urban Affairs Committee (D-Burlington).

“The excessive cost of housing is putting immense pressure on so many of New Jersey’s residents, from lower-income families to those who have a stable income yet cannot afford the price of homes in their community,” said Senator Greenstein (D-Mercer/Middlesex). “Providing support to build both affordable and middle-income housing will help guarantee that families can continue to live and work in our great State without having to worry about being pushed out.”

“It’s time to invest in our workers the way they invest in New Jersey,” said Senator Turner (D-Hunterdon/Mercer). “Our low and middle-income families and residents deserve to be able to work and know that their paycheck will cover rent each month. This legislation is a smart, innovative way to greatly expand the amount of available and affordable housing units so that everyone can make their mark in the State, no matter their income.”

The bill, S-4071, would shift $500 million in tax credits currently authorized for the “Brownfields Redevelopment Incentives Program Act,” the “New Jersey Aspire Program Act,” and the “Emerge Program Act,” to the New Jersey Housing and Mortgage Finance Agency (HMFA), which would sell them through a competitive auction process over the course of no more than six years. The HMFA would be limited to selling $100 million in tax credits annually and would not sell tax credits for less than 80% of the tax credit amount.

The bill defines “low- and moderate-income housing” as affordable housing for households earning less than 80% of the area's median income. “Middle-income workforce housing” is defined as affordable housing for households earning between 80% and 120% of the area's median income, based on the federal Department of Housing and Urban Development or other recognized standards. Half of the auction proceeds would fund middle-income workforce housing through the HMFA, while the other half would support low- and moderate-income housing to help municipalities meet their affordable housing obligations under the Fair Housing Act.

Under the bill, housing could include, but would not be limited to, new construction or the rehabilitation or construction of residential units with multiple dwellings. The HMFA would be required to actively promote middle-income workface housing to ensure a substantial range of potential applicants to obtain funding are made aware of the program.