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Housing Advocates Denounce Budget Raid on Affordable Housing Trust Fund, Call Out Missed Opportunity to Invest Mansion Tax Revenue in Affordable Homes 6/30/2025 The Housing and Community Development Network of New Jersey (the Network) expresses deep disappointment in the Legislature’s passage of a state budget that diverts a significant portion of the state’s Affordable Housing Trust Fund (AHTF), and in the failure of state leaders to protect or expand this vital source of support for low- and moderate-income housing. “This situation is nothing short of devastating,” said Edward Bethea, Executive Vice President and Chief Operating Officer of Gateway Community Action Partnership and Chair of the Network Board of Directors. “Over the past several years, nonprofit developers have invested deeply in hiring staff, acquiring properties, and laying the groundwork to expand homeownership opportunities in marginalized communities. These budgetary decisions now force us to retreat from that progress at a time when the need is greatest.” Bethea continued, “We must demand continued support for equitable development. The people we serve, those living in under-resourced neighborhoods, cannot afford to be pushed further to the margins. Our commitment to justice and community empowerment must remain unwavering.” The AHTF was explicitly established to support the development of homes for residents earning at or below 80 percent of the area median income (AMI). The decision to divert funds from this dedicated source to support housing-adjacent programs that serve households above that income threshold is a clear violation of the fund’s intent and undermines urgently needed affordable housing development. Equally concerning is the failure to dedicate any portion of the newly expanded Mansion Tax to housing. Advocates and housing stakeholders across the state urged leaders to invest a portion of this progressive revenue source into producing and preserving affordable homes. Instead, state leaders opted for a short-term fiscal patch at the expense of long-term affordability. “Governor Murphy and the Legislature are making a grave mistake at a pivotal moment for New Jersey,” said Matthew Hersh, Vice President of Policy and Advocacy at the Network. “Instead of preserving and growing the only dedicated source of funding for affordable homes in our state, they’ve chosen to drain the Trust Fund and miss a once-in-a-generation opportunity to invest new Mansion Tax revenue into solving New Jersey’s housing crisis. They must come back to Trenton and correct this mistake. We can’t build an affordable state unless we build affordable homes.” New Jersey has only just begun to make progress in addressing its housing crisis. With 84,000 affordable homes required under the current Mount Laurel obligations and a deficit of nearly 290,000 affordable homes for low-income residents, the need to preserve and expand dedicated housing funds like the AHTF is more urgent than ever. The Network and its 275 member organizations will continue to advocate for the restoration and protection of the AHTF and for bold, long-term solutions that ensure everyone in New Jersey has a safe, affordable place to call home. About the Housing and Community Development Network of NJ For more information: Nina Rainiero
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