NJ Can’t Afford Raid OF Affordable Housing Trust Fund, say Housing Advocates Following State Budget Address
Call for Realty Transfer Fee increase to be dedicated to other housing needs

2/25/2025

Following Governor Phil Murphy’s presentation of the Fiscal Year 2026 State Budget today, Housing and Community Development Network of New Jersey’s (the Network) President and Chief Executive Officer Staci Berger issued the following statement:

“Under the Murphy Administration, NJ has made begun making progress to address the severe shortage of affordable homes in our state, but we still have hundreds of thousands of households struggling to make ends meet while they grapple with finding a place they can afford to call home. The Affordable Housing Trust Fund (AHTF) is essential to making housing more affordable by creating the homes people need and deserve. More towns are beginning to work towards meeting their fair hosting obligations and these funds are an important piece of the puzzle.

“It is deeply disappointing that the governor’s budget again proposes to divert these funds, despite his promises to turn the page on these kinds of raids. Taking the AHTF for anything other than its intended use is a failed policy of the Chris Christie era and has led to the housing crisis so many of our neighbors are experiencing now. It’s fiscally irresponsible to do anything other than fully fund the creation of affordable homes.

“Fortunately, there is another alternative than this raid on the AHTF, which will cause irreparable harm to nonprofit community developers and the residents they serve. We are glad to see the Realty Transfer Fee increase for luxury home sales of over $1M included in this proposal. We urge the Legislature to dedicate these funds into the other housing programs that need resources. It will be impossible for people to use the down payment assistance program unless we build more affordable homes. We look forward to working with our state leaders to protect the trust fund and address our housing crisis.

“This budget includes several worthy proposals such as downpayment assistance for first time homebuyers, but it is all for naught if our residents don’t have access to decent, affordable homes. On the contrary, the governor and legislative leaders should be exploring ways to grow the fund rather than drain it. For the many families that are just one paycheck away from homelessness, we need to do better.”

In a letter delivered to Governor Murphy ahead of the budget address, housing advocates offered the following suggestions to grow the Affordable Housing Trust Fund:

  • Create Housing Revenue Streams through a Fee on Luxury Home Sales: We encourage the creation of a new revenue source through the sale of homes over $2 million that could fund vital programs that make living and raising a family in the state more affordable. The fee's impact would be limited to a small fraction of the housing market.

  • Lower the rent: NJ should adopt a fee on for-profit, luxury developments that could be forgiven or refunded if the landlord provides affordable units through inclusionary zoning and/or keeps rent increases at a reasonable rate.

  • Make evictors pay: NJ must increase the eviction filing fee to $150, up from the current $50. This increased fee would be deposited directly into DCA’s Office of Homelessness Prevention. Revenue could also be used to provide critical resources for eviction diversion counseling, rental assistance and/or legal counsel for lower income tenants.

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.