The latest round of affordable housing development in New Jersey is well underway, with a key deadline for municipalities and developers fast approaching on June 30, 2025.
This fourth round — spanning 2025 to 2035 — is governed by legislation signed in March 2024 (the AH Law), which restructured the state’s affordable housing process and set new deadlines for State agencies, municipalities, and challengers to calculate obligations statewide.
Challenges and Settlements Mark Early Phase
In October 2024, the New Jersey Department of Community Affairs (DCA) issued affordable housing obligation numbers for each municipality. Municipalities had the option to accept those figures or challenge them by the end of January 2025. A total of 159 municipalities sought to reduce their assigned obligations — all of which were challenged by the Fair Share Housing Center, the New Jersey Builders’ Association and others.
Throughout March 2025, municipalities and challengers worked through a dispute resolution process established by the AH Law, known as the Program. Most parties reached settlements. Those that didn’t participated in Sessions — hearings before Program members tasked with resolving the remaining disputes. The Program has proven largely successful, and most municipalities have now finalized their fourth-round affordable housing numbers.
The June 2025 Deadline: What’s at Stake
The next major milestone is June 30, 2025. By then, municipalities must submit their Housing Element & Fair Share Plans (HEFSPs) — comprehensive documents outlining demographics, housing obligations, and land most suitable for development. The HEFSP must include detailed site suitability analyses, concept plans for selected sites, and an explanation of how the municipality will meet its affordable housing obligation.
With the deadline nearing, municipalities are actively drafting their HEFSPs — and developers or interested parties should engage now. Because the plans must identify specific development sites and include concept plans, there’s a narrowing window for builders and landowners to present suitable properties to municipalities for inclusion.
Ultimately, June 30, 2025, marks a crucial milestone in the process that will shape affordable housing development across New Jersey for the next decade.
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