A proposed New Jersey law would make it easier to transform vacant shopping malls and underused office parks into housing, part of a broader push to address the state’s persistent housing shortage and revive struggling commercial properties.

The legislation, Senate Bill S1766, would authorize developers to convert qualifying retail centers and office parks into mixed-use developments that combine residential units with retail, office or recreational space.

At least 20% of new housing units would have to be designated as affordable housing.

The measure would also help override local zoning rules that often block housing in areas designated strictly for commercial use.

Supporters say the bill targets so-called stranded assets — aging or empty properties that have declined as shopping habits shift and remote work reduces demand for suburban office space.

The proposal comes as New Jersey faces a significant housing gap.

State lawmakers and housing advocates estimate the state is short more than 200,000 units, including affordable options.

Converting empty malls into residential communities has emerged as one potential way to close that gap without fueling new sprawl.

The concept has gained traction across the state as several high-profile malls undergo transformation.

Projects are already underway at sites like Monmouth Mall, where developer Kushner Companies demolished the complex’s vacant department stores to make room for the construction of 1,000 new apartments.

The mall’s remaining retail outlets will undergo a conversion that involves changing the enclosed space to an open-air configuration.

The new “live, work and play” development is being called Monmouth Square.

Other locations, including the Brunswick Square Mall in East Brunswick and the Livingston Mall in Livingston, have been discussed as potential candidates for similar redevelopment.

Supporters argue that the approach takes advantage of existing infrastructure, such as road access and transit connections.

It could also reduce pressure to build new housing in already densely developed residential neighborhoods.

The bill is sponsored by Democratic Sens. Troy Singleton and Benjie Wimberly, who have introduced similar legislation in previous sessions.

Earlier versions of the measure, including S1408, contained largely the same provisions but did not become law.

Still, the proposal has drawn opposition from some municipal leaders who argue it could weaken local control over development decisions.

Critics warn that overriding zoning rules may lead to projects that do not align with community planning goals or infrastructure capacity.

Advocates counter that local zoning has often slowed or blocked redevelopment of vacant commercial sites, prolonging blight and limiting opportunities to add housing.

If enacted, the legislation would mark a significant shift in how New Jersey handles land use, encouraging a transition from single-use suburban development toward denser, walkable communities.

Lawmakers have not yet set a final timeline for passage.

Original Article