Gov. Mikie Sherrill on Wednesday announced a dual-pronged strategy aimed at addressing New Jersey’s persistent housing affordability crisis, emphasizing a move from long-term planning to immediate construction. The announcement marks the latest effort by the Sherrill Administration to expand housing supply through municipal partnerships and critical financial investment.
The governor said that the application period for the second cohort of the New Jersey Housing Opportunities for Municipal Equity and Success (NJ HOMES) initiative will close on July 1.
The program is designed to move beyond traditional, time-consuming studies by providing selected municipalities with technical assistance, planning support, and resources to identify local barriers to home construction. The state plans to select 30 additional municipalities for this second cohort, helping them unlock opportunities for “smart growth” near jobs, transit, and town centers.
“We simply cannot afford 10-year studies while housing becomes more and more unaffordable,” Sherrill said. “If we want the next generation to stay here, build careers here, and raise families here, we have to make housing more affordable in New Jersey.”
In addition to the NJ HOMES expansion, Sherrill announced that the New Jersey Housing and Mortgage Finance Agency (NJHMFA) successfully raised nearly $35 million through its latest Affordable Housing Tax Credit auction. These funds will be deployed to finance affordable and workforce housing developments throughout the state, leveraging private investment to bolster the supply of homes available to residents across various income levels.
The announcements build on Executive Order 17, signed by the Governor in April, which established the Housing Governance Council to streamline permitting, align state agencies, and accelerate housing production.
The Administration’s broader housing strategy also includes:
- Budgetary Support: The Governor’s proposed budget reduces diversions from the Affordable Housing Trust Fund by more than $70 million.
- Homelessness Prevention: The budget includes $25 million to expand rapid re-housing programs for vulnerable households.
- Accessibility: Expanded downpayment assistance and property tax relief initiatives aimed at helping low- and moderate-income residents achieve homeownership.
The Administration’s action has garnered support from a diverse coalition of housing advocates and industry leaders:
- Adam Gordon, executive director of the Fair Share Housing Center: “Governor Sherrill’s commitment to facilitating housing production—now—is exactly the kind of leadership this moment requires. Programs like NJ HOMES will help municipalities move more quickly to turn their plans into actual homes.”
- Jeff Kolakowski, CEO of the NJ Builders Association: “We are encouraged that Governor Sherrill has recognized that reality and continues to approach housing through a statewide lens and a coordinated, whole-of-government strategy.”
- Vivian Cox Fraser, president & CEO of the Urban League of Essex County: “We are encouraged by the Governor’s urgency… The measure of success will not simply be how many homes are produced, but whether the people who built and sustained these communities can afford to remain, thrive, and share in New Jersey’s future.”
Municipalities interested in participating in the second cohort of the NJ HOMES program are encouraged to submit their applications before the July 1 deadline.
