Housing and Community Development Network Issues Statement on FY 2025 State Budget

6/27/2024

The following is a statement from Staci Berger, president and chief executive officer of the Housing and Community Development Network of New Jersey (the Network), in response to the Fiscal Year 2025 State Budget:

“We're disappointed that the budget being voted on tomorrow, which was only released to the public today, does not include critical investments to address housing affordability in our state. In the face of rapidly rising rents, increasing housing instability, and the onset of NJ’s 4th round of municipal affordable housing obligations, this is a missed opportunity.

“It's another year where the Neighborhood Revitalization Tax Credit program, one of the state’s most successful and highly regulated tax credit programs, remains underfunded despite leveraging up to $7 for each dollar invested. The current $15 million tax cap limits our communities’ ability to build healthy, affordable homes and thriving neighborhoods.

“We’re surprised that the Legislature was unable to double the NRTC despite its popularity and proven track record of revitalizing distressed neighborhoods, but was able to fast-track a $500 million tax credit for artificial intelligence (AI) businesses with few safeguards. Over 20 legislators supported the increase, signing on to budget resolutions calling for an increase in this small but mighty program.

“The budget, as advanced last night, takes us backwards to the past practice of diverting the Affordable Housing Trust Fund (AHTF), which we strongly oppose. Instead of taking this opportunity to tackle NJ’s housing affordability crisis and help the most vulnerable residents who are struggling to keep a roof over their heads, this budget diverts resources to subsidy programs for residents over the income threshold allowed by the AHTF’s guidelines. The AHTF is increasingly being utilized to fund housing security, stability and affordability programs, which are essential and should be funded through general revenue. To preserve the intended use of the Trust Fund and ensure that construction and rehabilitation resources remain available to fill the need for more affordable homes to be built, we must grow the AHTF.

“The annual Out of Reach report, released earlier today by the Network and the National Low Income Housing Coalition, found that New Jersey continues to be in the top ten least affordable places for renters. We also continue to have one of the widest racial wealth gaps in the nation, driven by our housing market. For our residents and our economy to thrive, we must meaningfully and urgently accelerate investment in affordable home production, renter protections and community revitalization. Unfortunately, this budget misses that opportunity. We hope our elected officials will work more closely with our network of non-profit housing developers and housing advocates to address these concerns in the coming months, and certainly, in next year’s budget.”

About the Housing and Community Development Network of NJ
The Housing and Community Development Network of New Jersey is the statewide association of more than 275 community development corporations, individuals and other organizations that support the creation of affordable homes, economic opportunities, and strong communities. For more information on the Network, visit www.hcdnnj.org.