Permits municipalities to establish affordable housing preference for first responders.

A4121

ASSEMBLY, No. 4121

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 19, 2026

Sponsored by:

Assemblywoman� CAROL A. MURPHY

District 7 (Burlington)

Assemblywoman� ANNETTE QUIJANO

District 20 (Union)

SYNOPSIS

���� Permits municipalities to establish affordable
housing preference for first responders.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

concerning an affordable housing preference for
first responders and amending P.L.1985, c.222.

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

���� 1.��� Section 11 of P.L.1985,
c.222 (C.52:27D-311) is amended to read as follows:

���� 11. a. In adopting its housing
element, the municipality may provide for its fair share of low- and
moderate-income housing by means of any technique or combination of techniques
which provide a realistic opportunity for the provision of the fair share.� The
housing element shall contain an analysis demonstrating that it will provide
such a realistic opportunity, and the municipality shall establish that its
land use and other relevant ordinances have been revised to incorporate the
provisions for low- and moderate-income housing.� In preparing the housing
element, the municipality shall consider the following techniques for providing
low- and moderate-income housing within the municipality, as well as such other
appropriate techniques as have been established through applicable precedent
and may be employed by the municipality:

���� (1)�� Rezoning for densities
necessary to assure the economic viability of any inclusionary developments,
either through mandatory set-asides or density bonuses, as may be necessary to
meet all or part of the municipality's fair share in accordance with the provisions
of subsection h. of this section;

���� (2)�� Determination of the
total residential zoning necessary to assure that the municipality's fair share
is achieved;

���� (3)�� Determination of
measures that the municipality will take to assure that� low- and
moderate-income units remain affordable to� low- and moderate-income households
for an appropriate period of not less than the period required by the
regulations adopted by the Department of Community Affairs pursuant to section
21 of P.L.1985, c.222 (C.52:27D-321);

���� (4)�� A plan for
infrastructure expansion and rehabilitation and conversion or redevelopment of
unused or underutilized real property, including existing structures, if
necessary to assure the achievement of the municipality's fair share of low-
and moderate-income housing;

���� (5)�� Donation or use of
municipally owned land or land condemned by the municipality for purposes of
providing low- and moderate-income housing;

���� (6)�� Tax abatements for
purposes of providing low- and moderate-income housing;

���� (7)�� Utilization of funds
obtained from any State or federal subsidy toward the construction of low- and
moderate-income housing;

���� (8)�� Utilization of
municipally generated funds toward the construction of low- and moderate-income
housing; and

���� (9)�� The purchase of
privately owned real property used for residential purposes at the value of all
liens secured by the property, excluding any tax liens, notwithstanding that
the total amount of debt secured by liens exceeds the appraised value of the
property, pursuant to regulations promulgated by the Commissioner of Community
Affairs pursuant to subsection b. of section 41 of P.L.2000, c.126
(C.52:27D-311.2).

���� b.��� The municipality may
provide for a phasing schedule for the achievement of its fair share of low-
and moderate-income housing.

���� c.���� (Deleted by amendment,
P.L.2008, c.46)

���� d.��� Nothing in P.L.1985,
c.222 (C.52:27D-301 et al.) shall require a municipality to raise or expend
municipal revenues in order to provide low- and moderate-income housing.

���� e.���� When a municipality's
housing element includes the provision of rental housing units in a community
residence for the developmentally disabled, for the mentally ill, or for
persons with head injuries, as those terms are defined in section 2 of
P.L.1977, c.448 (C.30:11B-2), or in transitional housing, which will be
affordable to persons of low- and moderate-income, and for which adequate
measures to retain such affordability pursuant to paragraph (3) of subsection
a. of this section are included in the housing element, those housing units
shall be fully credited towards the fulfillment of the municipality's fair
share of low- and moderate-income housing.� A municipality shall not credit
transitional housing units towards more than 10 percent of the municipality's
fair share obligation.�

���� f.���� It having been
determined by the Legislature that the provision of housing under P.L.1985,
c.222 (C.52:27D-301 et al.) is a public purpose, a municipality or
municipalities may utilize public monies to make donations, grants or loans of
public funds for the rehabilitation of deficient housing units and the
provision of new or substantially rehabilitated housing for low- and
moderate-income persons, providing that any private advantage is incidental.

���� g.��� A municipality that has
received approval of its housing element and fair share plan for the current
round, and that has actually effected the construction of the affordable
housing units it is obligated to provide, may amend its affordable housing
element or zoning ordinances without losing immunity from exclusionary zoning
litigation.

���� h.��� Whenever affordable
housing units are proposed to be provided through an inclusionary development,
a municipality shall provide, through its zoning powers, incentives to the
developer, which shall include increased densities and reduced costs.

���� i.���� A municipality and a
developer may request a modification of a compliance certification involving
reduced affordable housing set-asides or increased densities to ensure the
economic feasibility of an inclusionary development, if any such application
demonstrates how any shortfall in meeting the municipal fair share obligation
will then be addressed.� Such a request may be granted only if the municipality
and developer have demonstrated that the project has been impacted by market
conditions beyond their reasonable control.

���� j.���� A municipality may
enter into an agreement with a developer or residential development owner to
provide a preference for affordable housing to low- and moderate-income
veterans who served in time of war or other emergency, as defined in section 1
of P.L.1963, c.171 (C.54:4-8.10), of up to 50 percent of the affordable units
in that particular project.� This preference shall be established in the
applicant selection process for available affordable units so that applicants
who are veterans who served in time of war or other emergency, as referenced in
this subsection, and who apply within 90 days of the initial marketing period
shall receive preference for the rental of the agreed-upon percentage of
affordable units.� After the first 90 days of the initial 120-day marketing
period, if any of those units subject to the preference remain available, then
applicants from the general public shall be considered for occupancy.�
Following the initial 120-day marketing period, previously qualified applicants
and future qualified applicants who are veterans who served in time of war or
other emergency, as referenced in this subsection, shall be placed on a special
waiting list as well as the general waiting list.� The veterans on the special
waiting list shall be given preference for affordable units, as the units
become available, whenever the percentage of preference-occupied units falls
below the agreed upon percentage.� Any agreement to provide affordable housing
preferences for veterans pursuant to this subsection shall not affect a
municipality's ability to receive credit for the unit.

���� k.� In the fourth round, and
in subsequent rounds of affordable housing obligations, a municipality shall be
able to receive one credit against its affordable housing obligation for each
unit of low- or moderate-income housing and shall not receive bonus credit for
any particular type of low- or moderate-income housing, unless authority to
obtain bonus credit is expressly provided pursuant to this section or other
sections of the "Fair Housing Act," P.L.1985, c.222 (C.52:27D-301 et
al.).� A municipality shall not receive more than one type of bonus credit for
any unit and a municipality shall not be permitted to satisfy more than 25
percent of its prospective need obligation in the fourth round or any
subsequent round through the use of bonus credits.� This subsection shall not
be construed to limit the ability of a municipality to receive a unit of credit
for a low- or moderate-income housing unit that is subject to affordability
controls that are scheduled to expire, but are extended pursuant to section 21
of P.L.1985, c.222 (C.52:27D-321), to the extent that this affordability
control extension would otherwise generate this credit.� As a part of a fair
share plan and housing element adopted pursuant to subsection f. of section 3
of P.L.2024, c.2 (C.52:27D-304.1), a municipality shall:

���� (1) receive one unit of credit
and one bonus credit for each unit of low- or moderate-income housing for
individuals with special needs or permanent supportive housing, as those terms
are defined in section 2 of P.L. 2004, c.70 (C.34:1B-21.24);

���� (2) receive one unit of credit
and one-half bonus credit for each low- or moderate-income ownership unit
created in partnership sponsorship with a non-profit housing developer;

���� (3) receive one unit of credit
and one-half bonus credit for each unit of low- or moderate-income housing
located within a one-half mile radius, or one-mile radius for projects located
in a Garden State Growth Zone, as defined in section 2 of P.L.2011, c.149
(C.34:1B-243), surrounding a New Jersey Transit Corporation, Port Authority
Transit Corporation, or Port Authority Trans-Hudson Corporation rail, bus, or
ferry station, including all light rail stations.� For the purpose of this
subparagraph, the distance from the bus, rail, or ferry station to a housing
unit shall be measured from the closest point on the outer perimeter of the
station, including any associated park-and-ride lot, to the closest point of
the housing project property;

���� (4)� receive one unit of
credit and one-half bonus credit for a unit of age-restricted housing, provided
that a bonus credit for age-restricted housing shall not be applied to more
than 10 percent of the units of age-restricted housing constructed in compliance
with the Uniform Housing Affordability Controls promulgated by the New Jersey
Housing and Mortgage Finance Agency in a municipality that count towards the
municipality's affordable housing obligation for any single 10-year round of
affordable housing obligations;

���� (5)� receive one unit of
credit and one-half bonus credit for each unit of low- or moderate-income
family housing with at least three bedrooms above the minimum number required
by the bedroom distribution.� This bonus credit shall be calculated by taking
into account the full municipal fair share plan and housing element, and the
number of units with at least three bedrooms required for projects satisfying
the minimum 50 percent family housing requirements.� A municipality shall
receive the bonus credit pursuant to this paragraph for each unit with at least
three bedrooms that are above the minimum number required for the bedroom
distribution determined pursuant to the Uniform Housing Affordability Controls
promulgated by the New Jersey Housing and Mortgage Finance Agency;

���� (6)� receive one unit of
credit and one-half bonus credit for a unit of low- or moderate-income housing
constructed on land that is or was previously developed and utilized for
retail, office, or commercial space;

���� (7)� receive one unit of
credit and one-half bonus credit for each existing low- or moderate-income
rental housing unit for which affordability controls are extended for a new
term of affordability, in compliance with the Uniform Housing Affordability Controls
promulgated by the New Jersey Housing and Mortgage Finance Agency, and the
municipality contributes funding towards the costs necessary for this
preservation;

���� (8)� receive one unit of
credit and one bonus credit for each unit of low- or moderate-income housing in
a 100 percent affordable housing project for which the municipality contributes
toward the costs of the project.� This contribution may consist of: (a) real
property donations that enable siting and construction of the project or (b)
contributions from the municipal affordable housing trust fund in support of
the project, if the contribution consists of no less than three percent of the
project cost;

���� (9)� receive one unit of
credit and one-half bonus credit for each unit of very low-income housing for
families above the 13 percent of units required to be reserved for very
low-income housing pursuant to section 7 of P.L.2008, c.46 (C.52:27D-329.1).� In
accordance with section 7 of P.L.2008, c.46 (C.52:27D-329.1), a municipality
shall not be required to provide that a specific percentage of the units in any
specific project be reserved as very low-income housing in order to obtain this
bonus credit, and the 13 percent level, for the purpose of bonus credits, shall
be calculated against the full prospective need obligation provided pursuant to
the fair share plan; and

���� (10)� receive one unit of
credit and one bonus credit for each unit of low- or moderate-income housing
created by transforming an existing rental or ownership unit from a market rate
unit to an affordable housing unit.� A municipality may only rely on this bonus
credit as part of its fair share plan and housing element if the municipality
demonstrates that a commitment to follow through with this market to affordable
agreement has been made and: (a) this agreement has been signed by the property
owner; or (b) the municipality has obtained ownership of the property.

���� l.� A municipality may not
satisfy more than 30 percent of the affordable housing units, exclusive of any
bonus credits, to address its prospective need affordable housing obligation
through the creation of age-restricted housing.� A municipality shall satisfy a
minimum of 50 percent of the actual affordable housing units, exclusive of any
bonus credits, created to address its prospective need affordable housing
obligation through the creation of housing available to families with children
and otherwise in compliance with the requirements and controls established
pursuant to section 21 of P.L.1985, c.222 (C.52:27D-321).� A municipality shall
satisfy a minimum of 25 percent of the actual affordable housing units,
exclusive of any bonus credits, to address its prospective need affordable
housing obligation, through rental housing, including at least half of that
number available to families with children.� All units referred to in this
section shall otherwise be in compliance� with the requirements and controls
established pursuant to section 21 of P.L.1985, c.222 (C.52:27D-321).

���� m.� All parties shall be
entitled to rely upon regulations on municipal credits, adjustments, and
compliance mechanisms adopted by the Council on Affordable Housing unless those
regulations are contradicted by statute, including but not limited to P.L.2024,
c.2 (C.52:27D-304.1 et al.), or binding court decisions.

���� n.� P.L.2024, c.2
(C.52:27D-304.1 et al.) shall not be construed to require a municipality to
fund infrastructure improvements for affordable housing projects beyond any
commitments made in a fair share plan and housing element that has been
provided with compliance certification.� A municipality may fund infrastructure
improvements for affordable housing projects, through the adoption of a
development agreement with the applicant, beyond any commitments made in a fair
share plan and housing element that has been provided with compliance
certification.

o.� A municipality may enter
into an agreement with a developer or residential development owner to provide
a preference for affordable housing to low- and moderate-income first
responders of up to 50 percent of the affordable units in that particular
project.� This preference shall be established in the applicant selection
process for available affordable units so that applicants who are first
responders, and who apply within 90 days of the initial 120-day marketing
period, shall receive preference for the rental of the agreed-upon percentage
of affordable units.� After the first 90 days of the initial 120-day marketing
period, if any of those units subject to the preference remain available, then
applicants from the general public shall be considered for occupancy.�
Following the initial 120-day marketing period, previously qualified applicants
and future qualified applicants who are first responders shall be placed on a
special waiting list as well as the general waiting list.� The first responders
on the special waiting list shall be given preference for affordable units, as
the units become available, whenever the percentage of preference-occupied units
falls below the agreed upon percentage.� Any agreement to provide affordable
housing preferences for first responders pursuant to this subsection shall not
affect a municipality's ability to receive credit for the unit from the
council, or its successor.

����
For the purposes of this
subsection, �first responder� means a law enforcement officer; paid or
volunteer firefighter; paid or volunteer member of a duly incorporated first
aid, emergency, ambulance, or rescue squad association; or any other person
who, in the course of the person�s employment, is dispatched to the scene of a
motor vehicle accident or other emergency situation for the purpose of
providing medical care or other emergency assistance; and who, in the case of
all the foregoing, has served in that capacity for at least two years.

(cf: P.L.2024, c.2, s.24)

���� 2.��� This act shall take
effect immediately.

STATEMENT

���� This bill permits
municipalities to establish an affordable housing preference for first
responders.� Under the bill, a municipality would be authorized to enter into
agreements with developers to provide affordable housing occupancy preferences
for low- and moderate-income first responders, who meet certain service
requirements, of up to 50 percent of the affordable units in a particular
project.� Current law does not provide any preference for first responders who
otherwise qualify for affordable housing.

���� For the purposes of the bill,
�first responder� is defined as a law enforcement officer; paid or volunteer
firefighter; paid or volunteer member of a duly incorporated first aid,
emergency, ambulance, or rescue squad association; or any other person who, in
the course of the person�s employment, is dispatched to the scene of a motor
vehicle accident or other emergency situation for the purpose of providing
medical care or other assistance; and who, in the case of all the foregoing,
has served in that capacity for at least two years.