Delays fourth round of affordable housing obligations, including present and prospective need and related litigation, until July 1, 2028.

S3841

SENATE, No. 3841

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MARCH 10, 2026

Sponsored by:

Senator� ANTHONY M. BUCCO

District 25 (Morris and Passaic)

Co-Sponsored by:

Senators Corrado and Henry

SYNOPSIS

���� Delays fourth round of affordable housing
obligations, including present and prospective need and related litigation,
until July 1, 2028.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

delaying the fourth round of affordable housing
obligations and litigation until July 1, 2028.

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

���� 1.� The Legislature finds and
declares:

���� a.� Municipalities have
incurred significant expenses in complying with fair share affordable housing
obligations, ultimately borne by the State�s taxpayers;�

���� b.� Accordingly, the Supreme
Court of New Jersey recognized that affordable housing is a policy matter best
left to the Legislature and that the court�s role in upholding the Mount Laurel
doctrine could decrease as a result of legislative action;�

���� c.� Compounding the burden of
litigation expenses, the COVID-19 pandemic led the Governor and Legislature to
take drastic action, which shut down the New Jersey economy, causing severe
past and present economic difficulties for New Jersey taxpayers and municipalities;�

���� d.� These economic
difficulties have presented and continue to present severe hardship for
municipalities seeking, in good faith, to satisfy their affordable housing
obligations;�

���� e.� Inflation and the high
demand for construction materials have compounded the factors making affordable
housing construction exceedingly difficult;�

���� f.� Reliance on data from the
third round of affordable housing obligations, therefore, will be even more
critical in establishing present and prospective regional needs and municipal
affordable housing obligations;

���� g.� As the Legislature seeks
to clarify its intent with respect to Mount Laurel obligations, the Council on
Affordable Housing, and enforcement, delaying the fourth round of affordable
housing obligations is critical to ensure full third round data is available,
thereby providing the Legislature an opportunity to clarify the process for
establishing regional need and municipal obligations with respect to affordable
housing in this State; and

���� h.� It is therefore necessary
and proper to delay the fourth round of affordable housing obligations,
including present and prospective need and related litigation, until July 1,
2028.

���� 2.� a.� The 10-year period,
known as the �Fourth Round� of affordable housing obligations, previously
scheduled to begin in 2025 pursuant to section 7 of P.L.1985, c.222
(C.52:27D-307) and the Supreme Court�s decision in
In re N.J.A.C. 5:96 and
5:97
, 221
N.J.
1 (2015), including present and prospective need and
related litigation, shall not commence until July 1, 2028.

���� b.� Nothing in this act shall
be construed to impair or affect in any way any judgment or settlement of any
litigation or action concerning the obligation of a municipality to provide its
fair share of affordable housing that was issued or executed prior to the end
of the third round of affordable housing obligations on July 1, 2025.

���� 3.� This act shall take effect
immediately and shall expire on June 30, 2028.

STATEMENT

���� This bill would delay the
start of the fourth round of affordable housing obligations, including present
and prospective need and related litigation, which commenced in 2025, to July
1, 2028.

���� For decades, New Jersey
municipalities have expended significant taxpayer money to comply with
affordable housing obligations.� The State Supreme Court has recognized
affordable housing policy is best left to the Legislature.� Compounding the
burden of litigation expenses, the COVID-19 pandemic led the Governor and
Legislature to take drastic action, which shut down the State economy, causing
severe economic difficulties for municipalities.� These difficulties, and
others, have presented and continue to present severe hardship for
municipalities seeking to satisfy their affordable housing obligations.�
Reliance on data from the third round, therefore, will be even more critical in
establishing fourth round present and prospective regional needs and affordable
housing obligations.� It is therefore necessary to delay the start of the
fourth round of affordable housing obligations, including present and
prospective need and related litigation, to July 1, 2028.

���� This bill would not impair or
affect any settlement or judgment concerning the obligation of a municipality
that was issued or executed prior to the end of the third round of affordable
housing obligations on July 1, 2025.� The bill would expire on June 30, 2028.