TRENTON – New Jersey municipalities will now have greater authority and resources to address homelessness under a new law signed by Governor Phil Murphy. Sponsored by Senate President Nick Scutari and Senator Troy Singleton, the law, S-4832/A-3360, authorizes municipalities to establish homelessness trust funds and adopt local homeless housing plans to confront the growing crisis.

Homelessness is a growing issue affecting communities in every region of New Jersey. Its impact is far reaching, straining housing supply, public health and safety systems, local business districts, and the overall stability of community life. Municipal governments are on the front lines, yet many lack the long-term funding and strategic planning needed to address the crisis.

“Homelessness continues to increase across New Jersey, and local leaders need to be supported with the resources and ability to respond effectively,” said Senate President Scutari (D-Union/Somerset). “By giving municipalities the ability to invest directly in affordable housing, support services, and prevention programs, we can help families and individuals before they fall into crisis, and strengthen communities in the process.”

Homelessness in New Jersey has increased sharply in recent years. On a single night in January 2024, 12,680 individuals were counted as experiencing homelessness, a nearly 24 percent rise from the previous year. Families with children, veterans, seniors, and individuals with disabilities are among those most impacted.

“Homelessness is a daily reality for far too many New Jersey families,” said Senator Singleton (D-Burlington.) “This law gives municipalities the ability to plan ahead, invest wisely, and respond with compassion. When local leaders have the right tools and resources, more people can find the stability, dignity, and security they deserve.”

Under the law, municipalities can create homelessness trust funds and adopt municipal homeless housing plans. They will work in consultation with the Department of Community Affairs and local community-based organizations. A “homeless housing plan” is defined as a strategic roadmap with measurable, achievable objectives to end homelessness within the municipality.

“Establishing a dedicated municipal funding source would allow local governments to implement sustainable, comprehensive strategies tailored to the specific needs of their communities,” Senator Scutari said.

To fund these efforts, municipalities will be allowed to collect added funding from existing fines and penalties already collected by the municipalities, such as parking tickets and court fines. The funds would be deposited into a municipal homelessness trust fund to support:

The acquisition, construction, or rehabilitation of permanent affordable housing;
Rental assistance vouchers, including tenant and project-based subsidies;
Support services to help residents obtain or maintain permanent housing;
Prevention services for individuals and families at risk of homelessness.

While at least 15 of New Jersey’s 21 counties have already adopted county-level homelessness housing plans, rising housing costs and limited affordable housing supply have increasingly outpaced the reach of many emergency shelters, rental assistance, and prevention programs.

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