New Jersey has restored $45 million to its Affordable Housing Trust Fund after previously reducing the fund from $125 million to just $5 million during budget negotiations in June. The reduction drew criticism from developers, housing advocates, and local officials who said it threatened affordable housing projects across the state.
According to Gothamist, the Department of Community Affairs (DCA) announced that the newly allocated funds are expected to support between 10 and 20 projects. Of this amount, $10 million is designated for Habitat for Humanity, an organization focused on providing homeownership opportunities.
Developers will be able to reapply for funding at the end of the week, but there is a $3 million cap per project. Those who had already submitted proposals before the cuts will need to restart their applications. Among those affected is a Habitat for Humanity project in Old Bridge, which now faces a $4 million funding gap.
Housing advocates acknowledged the restoration but said it does not fully address ongoing needs. Liz DeCoursey, chief executive officer of Greater Middlesex & Morris Habitat, described the move as “great news” while noting her organization still has many projects on hold.
The initial rollback came after lawmakers passed legislation intended to create more than 80,000 affordable homes over ten years. The budget cuts put this goal at risk and increased frustration with Governor Phil Murphy’s administration. State officials argued that reallocating funds was necessary to support other housing initiatives such as first-time homebuyer assistance.
Developers and local leaders have stated that uncertainty around the trust fund makes planning and financing difficult at a time when New Jersey faces significant affordability challenges. Full restoration of funding may not occur until November when a new administration takes office; however, advocates plan to continue pushing for more support.
“Creating affordable housing remains one of the department’s highest priorities,” DCA Commissioner Jacquelyn Suárez said in a statement.
— Holden Walter-Warner
