§1

C.52:27D-304.4

and Note to §2

§2

C.34:1B-6.1

P.L. 2025, CHAPTER 142, approved September 11, 2025

Assembly, No. 2390 (First Reprint)

An Act requiring that municipalities in compliance with affordable housing obligations be provided priority consideration for certain grants and assistance, and supplementing chapter 27D of Title 52 and chapter 1B of Title 34 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

      1.  a.  Notwithstanding any rule, regulation, or law to the contrary, in awarding grants or other financial assistance through the Main Street New Jersey Program pursuant to P.L.2001, c.238 (C.52:27D-452 et seq.), the Neighborhood Preservation Program established pursuant to P.L.1975, c.248 (C.52:27D-142 et seq.), or any other program administered by the Department of Community Affairs through which monies may be provided to a municipality via a competitive process, the Department of Community Affairs shall give priority consideration to municipalities that ¹[are in compliance with the municipality’s fair share housing obligation pursuant to P.L.1985, c.222 (C.52:27D-301 et al.), as determined by the Department of Community Affairs] the department determines to be in compliance with subsection b. of this section¹.  The requirements of this section shall not apply to any grant or financial assistance that is intended to assist a municipality in fulfilling the municipality’s fair share housing obligation pursuant to P.L.1985, c.222 (C.52:27D-301 et al.).

      b.  For the purposes of this section:

      (1)  ¹[For] During¹ the first five years commencing at the beginning of a new round of affordable housing obligations, the Department of Community Affairs shall ¹[consider] provide priority consideration to a municipality if the municipality obtained compliance certification, or its equivalent, for the prior round of affordable housing obligations, and, the municipality is in compliance with¹ the following ¹[in determining a municipality’s compliance with the municipality’s fair share housing obligation pursuant to P.L.1985, c.222 (C.52:27D-301 et al.)]¹:

      (a)  the ¹[use of a] municipality was not required to include affordable units that resulted from¹ builder’s remedy ¹litigation¹ during the round of affordable housing obligations immediately preceding the current round;

      (b)  the ¹[existence and terms of] municipality entered into¹ an affordable housing settlement agreement reached ¹as part of a Declaratory Judgment action and received a Judgment of Compliance¹ during the round of affordable housing obligations immediately preceding the current round;

      (c)  the ¹[percentage of the municipality’s affordable housing obligation for] municipality has issued certificates of occupancy for new units that were part of¹ the affordable housing obligation round immediately preceding the current round ¹[that has been fulfilled]¹; ¹and¹

      (d)  any other factor of the round of affordable housing obligations immediately preceding the current round deemed relevant by the Department of Community Affairs. 

      (2)  Commencing five years after the beginning of a new round of affordable housing obligations, the Department of Community Affairs shall ¹[make compliance determinations based] provide priority consideration to a municipality if the municipality has obtained compliance certification for the current round of affordable housing obligations, and has made substantial progress¹ on the fulfillment of a municipality’s affordable housing obligation for the current round of affordable housing obligations.

      (3)  The Department of Community Affairs shall deem and determine ¹Qualified Urban Aid¹ municipalities ¹, as that term is defined in the "Fair Housing Act," P.L.1985, c.222 (C.52:27D-301 et al.),¹ that are exempt from ¹prospective need¹ fair share affordable housing obligations to meet the requirements of this section and shall give the municipality priority consideration as otherwise provided for in this section.

      2.  Notwithstanding any rule, regulation, or law to the contrary, in awarding grants or other financial assistance through any program through which monies may be provided to a municipality via a competitive process, the New Jersey Economic Development Authority shall give priority consideration to municipalities ¹[that are in compliance with the municipality’s fair share housing obligation pursuant to P.L.1985, c.222 (C.52:27D-301 et al.), as determined by the Department of Community Affairs pursuant to] following the standards set forth in¹ section 1 of P.L.    , c.    (C.        ) (pending before the Legislature as this bill).  The requirements of this section shall not apply to any grant or financial assistance that is intended to assist a municipality in fulfilling the municipality’s fair share housing obligation pursuant to P.L.1985, c.222 (C.52:27D-301 et al.).

     3.  This act shall take effect immediately.

     Requires municipalities in compliance with affordable housing obligations be provided priority consideration for certain State grants and assistance.