Housing Advocates, Legislators Urge Full Restoration of Affordable Housing Trust Fund, End to Criminalization of Homelessness, and Statewide Code Red Protections

12/12/2025

Standing together at the New Jersey State House ahead of yesterday’s Assembly Housing Committee meeting, the Housing and Community Development Network of New Jersey (the Network) joined Senator Britnee N. Timberlake (D-Essex), Assemblyman Reginald Atkins (D-Union), housing advocates, and community leaders to urge lawmakers to take immediate action to protect the state’s most vulnerable residents.

Advocates called for the full restoration of the Affordable Housing Trust Fund (AHTF), the passage of A1678, which would end fines and incarceration for people experiencing homelessness, and the adoption of a statewide Code Red protocol (A2258) to protect unhoused individuals during extreme heat, cold, and poor air quality events. The Code Red legislation was passed unanimously in the Senate back in June but remains held up in the Assembly.

Matthew Hersh, vice president of policy and advocacy for the Network, stressed the urgency of adopting statewide protections such as Code Red. “The state budget is 59 billion dollars. [Code Red] legislation would command about $5 million of that. It’s a drop in the hat to provide this essential service for our most-at-risk populations. We need to understand why commonsense legislation like Code Red is not advancing and we need answers today.”

During the Assembly Housing Committee meeting, legislation was advanced that allows municipalities to create municipal homelessness trust funds and adopt local homeless housing plans, measures advocates said represent meaningful progress. These funds would support activities that address homelessness at the local level. The Network supports the bill but emphasized that local efforts cannot succeed without statewide commitments to safety during extreme weather, affordable housing development, and ending the criminalization of homelessness.

“Housing is a human right, and we will not get that right unless we fight for it,” said Staci Berger, president and chief executive officer of the Network. “We should have the right to shelter whether it’s too cold, or too hot, or we don’t have enough resources of our own. We need elected officials here in the State House and across our state to make sure that everyone has a place that they can afford to live in.”

Raisa Rubin-Stankiewicz, policy associate at the New Jersey Coalition to End Homelessness, warned of the growing crisis: “Homelessness has risen 57 percent over the past three years in NJ, and it's only going to get worse with the rising cost of rent and federal cuts that are going to decimate our homelessness support system.”

Advocates also raised concerns over the state’s diversion of $125 million from the Affordable Housing Trust Fund in the fiscal year 2026 budget. The raid left municipalities and nonprofit developers without critical funding, particularly in communities with fair share housing obligations. In response, the Network launched a statewide campaign calling for full restoration of the fund. In August, the state announced the return of $45 million, which advocates hailed as a “downpayment” toward what is needed.

Senator Timberlake emphasized the moral imperative behind restoring and protecting these funds. “It's not about Democrat, it's not about Republican, it's about humanity,” she said. “Here at the state level, we have got to hold the line and make sure that our programs are fully funded. We should not have to be fighting so hard for the basic needs to meet the needs of people.”

Assemblyman Atkins echoed that message, calling for a statewide recommitment to service and equity. “We have to learn how to put humanity first,” he said. “We have to create a New Jersey—a culture of service, a service for humanity. The way we do that is to make sure that we have the right dollars in the right place to make the right impact.”

Advocates expressed optimism that AHTF diversions will end under the incoming Sherrill Administration, noting that Governor-elect Mikie Sherrill has publicly opposed diversions from the AHTF and committed to ensuring the state supports municipalities working to build affordable homes.

To watch the event, visit https://youtu.be/Wx2PJhUZfFI.

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 270 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.

For more information: Nina Rainiero
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