New Jersey is partially refilling the affordable housing trust fund it gutted a few months ago, but developers say the fix falls far short of what’s needed.
The $125 million Affordable Housing Trust Fund was stripped down to a mere $5 million in June during budget talks, sparking outrage from builders, housing advocates and local officials. Now, the Department of Community Affairs says it is putting $45 million back into the program, Gothamist reported.
The money is expected to support 10 to 20 projects; $10 million is carved out specifically for Habitat for Humanity, which provides homeownership opportunities.
Developers can begin reapplying for funding at the end of the week, though there’s a $3 million cap per project. Those who already had proposals in — some stalled midstream after the June cut — will have to restart the process. A Habitat project in Old Bridge, which was left with a $4 million funding gap, is among those still in limbo.
Housing advocates welcomed the move but were quick to call it a Band-Aid. Liz DeCoursey, chief executive officer of Greater Middlesex & Morris Habitat, called the restoration “great news” but warned her group still has dozens of projects sidelined.
The rollback hit months after lawmakers passed a law aimed at creating more than 80,000 affordable homes over the next decade. The cuts jeopardized that timeline and deepened frustration with Gov. Phil Murphy’s administration, which argued the raid of the pot was necessary to fund other housing initiatives, including first-time buyer assistance.
Developers and local leaders say uncertainty over the fund complicates planning and financing at a moment when the state faces one of the nation’s most acute affordability crunches. A full restoration may not come until November, when a new administration takes office, but advocates say they’ll keep pressing.
“Creating affordable housing remains one of the department’s highest priorities,” DCA Commissioner Jacquelyn Suárez said in a statement.
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