By Liz DeCoursey, CEO, Greater Middlesex & Morris Habitat for Humanity
As the U.S. faces an unprecedented housing affordability crisis, many New Jerseyans who want to contribute to their communities — seniors, working families, and young professionals — are being priced out. Many families are paying so much for their rent or mortgage that they’re sacrificing basic needs like food and medicine simply to keep a roof over their heads.
Fortunately, New Jersey’s Mount Laurel Doctrine, based on a series of state Supreme Court rulings beginning in 1975, requires all municipalities to contribute their fair share to addressing the state’s housing needs. Last year, New Jersey took a historic step toward addressing the cost of housing with a forward-thinking new law that strengthens the Mount Laurel Doctrine by significantly increasing the amount of affordable housing in every municipality of our state over the next decade.
New Jersey’s affordable housing law significantly reduces the cost of creating affordable housing by putting towns in the driver’s seat in creating their own plans, instead of the old system in which everything happened through litigation. Municipalities can choose from a range of options that meet their particular needs — such as 100% affordable housing, mixed income housing, supportive housing for seniors or people with disabilities, or repurposing abandoned malls or offices.
Municipalities in New Jersey are not required to directly fund affordable housing projects through local taxpayer dollars. New Jersey’s new law gives municipalities essential tools — such as redevelopment incentives and financing options — to meet their housing goals in ways that drive economic development.
As a result, the vast majority of New Jersey municipalities are participating in the affordable housing planning process — more than any time in the 50-year history of the Mount Laurel Doctrine.
I have seen firsthand the transformative benefits of New Jersey’s affordable housing framework. Habitat for Humanity affiliates work in every county of the state and have built thousands of income-restricted homes, thanks to the state’s requirement that municipalities provide their fair share of affordable housing.
Provisions in the new housing law give towns bonuses toward their affordable housing obligations for working with nonprofit developers, which often place more of an emphasis on long-term affordability and engage closely with local residents, ensuring housing solutions meet specific community needs.
We know that affordable homes are life-changing for families — leading to better educational, economic, and health outcomes that break generational cycles of poverty. What’s more, affordable housing doesn’t just benefit the people who live in it — it benefits all of us. Shortages of affordable housing have detrimental effects, limiting labor mobility and the overall economy.
In other words, facilitating the development of housing for residents of all income levels is not just a legal requirement — it’s an investment in long-term economic stability. Affordable housing attracts businesses, expands the workforce, and creates stronger, more resilient communities.
Contrary to common misconceptions, research consistently shows that affordable housing improves public safety and contributes to a stronger, more engaged population. When families can live where they work, they invest in their communities, leading to better economic and social outcomes for everyone.
As New Jerseyeans, we should be proud we have one of the best affordable housing systems in the U.S. Over the next decade, though, it will require steadfast support from local officials, as well as the legislature and executive branch, to reach its full potential.
In particular, the Affordable Housing Trust Fund is essential to mitigating the harms of the ongoing housing affordability crisis. This is often the only source of funds for smaller developments, which do not qualify for federal funding. Many smaller housing developments are 100% affordable, which qualify for bonus credits under New Jersey’s affordable housing law — thereby significantly reducing the impact on municipalities’ infrastructure.
Robust state-level funding for housing will be particularly crucial this year, as municipalities work to develop plans for how to meet affordable housing needs over the next decade. Habitat for Humanity affiliates and other non-profit developers rely on the Affordable Housing Trust Fund when constructing homes that help municipalities meet their fair share obligations.
I urge New Jersey’s leaders to think of affordable housing not just as a legal obligation, but as a tool to unlock economic potential. Families who live in affordable housing are more likely to reinvest their dollars back into their community, with greater purchasing power to enjoy all the wonderful things New Jersey has to offer — restaurants, entertainment, theme parks, theater, beaches, and so much more.
Many towns across New Jersey are proving that affordable housing and economic growth go hand in hand. By embracing affordable housing, municipalities can create a future where families thrive, businesses flourish, and towns remain prosperous for generations to come.
