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Corporate Subsidies Grow While Affordable Housing Trust Fund Remains Underfunded, say NJ Housing Advocates 
1/7/2026 As New Jersey lawmakers consider legislation to expand the state’s corporate tax incentive programs by $3 billion, housing advocates placed a new billboard on the way to the State House calling on Gov. Murphy and the Legislature to restore full funding to the state’s primary affordable housing program. The FY2026 budget diverted all but $5 million from the state Affordable Housing Trust Fund (AHTF), but Governor Murphy restored $45 million last August, which housing advocates cheered as a “downpayment” on the full restoration. Newly introduced legislation would raise the state’s overall tax incentive cap from $11.5 billion to $14.3 billion and exempt some large development projects from demonstrating a net positive economic benefit to the state. Advocates say the increase shows the state can afford to fund key priorities, including making housing more affordable. “If we have $3 billion for corporate tax incentives, we can find $80 million to restore critical funding to build affordable homes,” said Staci Berger, president and chief executive officer of the Housing and Community Development Network of New Jersey (the Network). “The Legislature and the Governor must invest resources in meeting the basic housing needs of residents who are being priced out of their communities.” The Network launched the latest phase of its public advocacy campaign to restore the AHTF with a new billboard visible to motorists traveling along Route 29 into Trenton this week. The billboard reads: “Tell Gov. Murphy & NJ Legislators: Fully Fund The Affordable Housing Trust Fund!” and directs the public to HouseNJ.org, where residents can take action. Last summer, thousands of residents and local leaders emailed and called their elected officials to demand a restoration of the funds. There is strong public support for using the funds as intended. In May, a Rutgers-Eagleton Poll found that 63 percent of residents felt that the fee should be used for its original intended purpose, the development and rehabilitation of affordable homes. “Affordability is a top concern for the majority of New Jerseyans,” said Berger. “Meeting the needs of our lowest income neighbors is a fundamental part of making our communities affordable and safe.” NJ faces a well-documented and worsening housing affordability crisis. Nearly half of renters in the state are cost-burdened, paying more than 30 percent of their income on housing. Seniors, people with disabilities, and working families are increasingly at risk of housing instability as rents and home prices continue to rise faster than wages. According to the Out of Reach report from the NLIHC, to afford a modest, two-bedroom apartment at fair market rent in NNJ, full-time workers need to earn $39.99 per hour but the average renter only earns $23.97 per hour. To address the crisis, the Network is urging the Legislature to not only restore the AHTF in full but also dedicate half of the newly enacted “Mansion Tax” revenue to the Fund. About the Housing and Community Development Network of NJ |
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