ASSEMBLY HOUSING COMMITTEE

STATEMENT TO

ASSEMBLY, No. 4913

STATE OF NEW JERSEY

DATED:  FEBRUARY 10, 2025

      The Assembly Housing Committee reports favorably Assembly Bill No. 4913.

This bill establishes a program to incentivize municipalities to amend their master plans and development regulations by incorporating therein certain housing strategies for the purpose of expanding the development potential of property for residential purposes at greater densities.

     Under the bill, the governing body of a municipality that is interested in qualifying for preferential status in the distribution of State aid pursuant to the bill may direct the municipal planning board to undertake and provide for a special reexamination of the municipality’s master plan and development regulations.  A planning board directed to undertake and provide for a special reexamination of the municipality’s master plan and development regulations is to, at a minimum, review the provisions of the municipality’s existing master plan and development regulations that address areas of the municipality within which residential development is permitted, and consider recommending specific changes to each to expand potential residential development.  The bill provides that a planning board undertaking a special reexamination of the municipality’s master plan and development regulations is to consider whether to include in the master plan and development regulations one or more housing strategies that may expand the development potential of property for residential purposes at greater densities.  The bill identifies the housing strategies to be considered by a planning board conducting a special reexamination, as specified in the bill.

     A planning board that has undertaken a special reexamination of the municipality’s master plan and development regulations is required to prepare and adopt by resolution a report on the findings of the special reexamination.  If a special reexamination report recommends changes to a municipality’s existing master plan, the bill requires the planning board to commence the process of amending the master.  This procedure requires the planning board to hold a hearing on the proposed amendments after providing public notice of the hearing.

     If a planning board amends a master plan pursuant to the bill, the governing body of the municipality is required to commence the process of considering amendment of the municipality’s zoning ordinance for the purpose of making the ordinance substantially consistent with the land use plan element and the housing plan element of the municipality’s master plan.

     The bill directs the Department of Community Affairs (DCA) to establish a preference in awarding State aid for municipalities that have amended their development regulations pursuant to the bill.  The preference is to apply to all competitively-awarded financial assistance that the DCA may distribute to one or more municipalities, other than a program that awards funds to help a municipality fulfill fair share housing obligation.

     Additionally, the bill directs the DCA to research and analyze each grant or other type of competitively-awarded financial assistance awarded to municipalities by State agencies, and enter into a memorandum of understanding with each State agency that awards a grant or other type of competitively-awarded financial assistance to municipalities for the purpose of establishing a preference in the award of a grant or other type of competitively-awarded financial assistance for those municipalities that have amended their master plans and development regulations to allow for the use of additional housing strategies, and which have thereby increased the number of housing units permitted for development in the municipality.  The bill directs the DCA, as specified in the bill, to adopt rules and regulations as it deems necessary or desirable to effectuate these provisions of the bill.

     Additionally, the bill provides that the Commissioner of Transportation, in determining the allocation of funds for municipal projects from the "Transportation Trust Fund Account" is to establish a criterion to provide, at the commissioner’s discretion, priority consideration to municipalities that implement the provisions of this bill, within the schedule of all other criteria for prioritization. 

     Finally, the bill permits increases in a school district’s district aid percentage for the purposes of the calculations of the State share of a school facilities project for municipalities that implement the provisions of this bill.  The bill permits increases to a district’s district aid percentage of no more than 10 percent.  Under the bill, a regional school district may be eligible for a district aid percentage increase if one or more constituent municipalities has implemented the provisions of the bill.  The increase for a regional district, however, may not exceed 10 percent, and the maximum district aid percentage increase due to any one constituent municipality’s implementation of the bill is to be calculated as specified in the bill.  The bill directs the Commissioner of Education and the Commissioner of Community Affairs to develop a uniform methodology to determine the district aid percentage increase for school districts.