New Jersey S 4271: Allows projects supported by State or municipal affordable housing trust fund to be exempt from property tax and to instead contribute to municipal services by making payments in lieu of taxation.

Bill Text

SENATE, No. 4271

STATE OF NEW JERSEY
220th LEGISLATURE

INTRODUCED JANUARY 4, 2024

Sponsored by:
Senator TROY SINGLETON
District 7 (Burlington)

SYNOPSIS
Allows projects supported by State or municipal affordable housing trust
fund to be exempt from property tax and to instead contribute to municipal
services by making payments in lieu of taxation.

CURRENT VERSION OF TEXT
As introduced.

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EXPLANATION – Matter enclosed in bold-faced brackets [thus] in the above bill is
not enacted and is intended to be omitted in the law.

Matter underlined thus is new matter.

AN ACT authorizing municipalities to grant tax exemptions and 1
negotiate payments in lieu of taxation for housing projects and 2
programs supported by the State or municipal affordable housing 3
trust fund, and amending P.L.1985, c.222 and P.L.2008, c.46. 4
5
BE IT ENACTED by the Senate and General Assembly of the State 6
of New Jersey: 7
8
1. Section 20 of P.L.1985, c.222 (C.52:27D-320) is amended to 9
read as follows: 10
20. There is established in the Department of Community 11
Affairs a separate trust fund, to be used for the exclusive purposes 12
as provided in this section, and which shall be known as the "New 13
Jersey Affordable Housing Trust Fund." The fund shall be a non-14
lapsing, revolving trust fund, and all monies deposited or received 15
for purposes of the fund shall be accounted for separately, by source 16
and amount, and remain in the fund until appropriated for such 17
purposes. The fund shall be the repository of all State funds 18
appropriated for affordable housing purposes, including, but not 19
limited to, the proceeds from the receipts of the additional fee 20
collected pursuant to paragraph (2) of subsection a. of section 3 of 21
P.L.1968, c.49 (C.46:15-7), proceeds from available receipts of the 22
Statewide non-residential development fees collected pursuant to 23
section 35 of P.L.2008, c.46 (C.40:55D-8.4), monies lapsing or 24
reverting from municipal development trust funds, or other monies 25
as may be dedicated, earmarked, or appropriated by the Legislature 26
for the purposes of the fund. All references in any law, order, rule, 27
regulation, contract, loan, document, or otherwise, to the 28
"Neighborhood Preservation Nonlapsing Revolving Fund" shall 29
mean the "New Jersey Affordable Housing Trust Fund." The 30
department shall be permitted to utilize annually up to 7.5 percent 31
of the monies available in the fund for the payment of any 32
necessary administrative costs related to the administration of the 33
"Fair Housing Act," P.L.1985, c.222 (C.52:27D-301 et al.), or any 34
costs related to administration of P.L.2008, c.46 (C.52:27D-329.1 et 35
al.). 36
a. Except as permitted pursuant to subsection g. of this section, 37
and by section 41 of P.L.2009, c.90 (C.52:27D-320.1), the 38
commissioner shall award grants or loans from this fund for 39
housing projects and programs in municipalities whose housing 40
elements have received substantive certification from the council, in 41
municipalities receiving State aid pursuant to P.L.1978, c.14 42
(C.52:27D-178 et seq.), in municipalities subject to a builder's 43
remedy as defined in section 28 of P.L.1985, c.222 (C.52:27D-328), 44
or in receiving municipalities in cases where the council has 45

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approved a regional contribution agreement and a project plan 1
developed by the receiving municipality. 2
Of those monies deposited into the "New Jersey Affordable 3
Housing Trust Fund" that are derived from municipal development 4
fee trust funds, or from available collections of Statewide non-5
residential development fees, a priority for funding shall be 6
established for projects in municipalities that have petitioned the 7
council for substantive certification. 8
Programs and projects in any municipality shall be funded only 9
after receipt by the commissioner of a written statement in support 10
of the program or project from the municipal governing body. 11
b. (1) The commissioner shall establish rules and regulations 12
governing the qualifications of applicants, the application 13
procedures, and the criteria for awarding grants and loans and the 14
standards for establishing the amount, terms, and conditions of each 15
grant or loan. 16
(2) The governing body of a municipality in which a housing 17
project or program is located, and which is awarded a grant or loan 18
from the fund for a housing project or program, may provide, by 19
ordinance or resolution as appropriate, that the units of affordable 20
housing being developed pursuant to a housing project or program 21
being funded, in whole or in part, through the "New Jersey 22
Affordable Housing Trust Fund" shall be exempt from real property 23
taxation if the housing sponsor enters into an agreement with the 24
municipality for payments to the municipality in lieu of taxes for 25
municipal services. Any such agreement may require the housing 26
sponsor to pay to the