Affordable Home Development at Risk Under Latest Tax Proposal
Legislation terminating realty transfer fees introduced today


Housing advocates are urging legislators to oppose a bill eliminating realty transfer fees that was formally introduced in the New Jersey Senate today. Citing the positive economic impact the fees have had on the state, advocates say the funds are critical to helping NJ’s economy recover. The funds are estimated to be $287 million in the current state budget and $325 million in next year’s spending plan.

“Realty Transfer Fees have been the key source of funding for the Affordable Housing Trust Fund which helps create the affordable homes New Jerseyans need and want,” said Staci Berger, president and CEO of the Network. “We have an imbalanced housing market in New Jersey and cutting the largest resource for affordable home production would be detrimental to our economy and for so many residents who are working hard to make ends meet. These fees help our state and residents recover by creating access to more affordable homes, ultimately boosting our economy.”

On the economic impact, Berger said, “Even in this past year with lower home sales, these fees created a fund of $48 million. If $25 million of that were to be used to build homes, the Affordable Housing Trust Fund would generate $100 million in private investment, 1100 jobs and $1.3 million in local property tax revenue.”

In addition to the Affordable Housing Trust Fund, a portion of the Realty Transfer Tax remains with the county that collects the fee for the County Public Health Priority Fund and pays for the funding of public health services. Also, $25 million goes toward the state’s dune and beach replenishment program as well as to the State’s General Fund.

“The Affordable Housing Trust funds generated by the Realty Transfer Fees have been used to help build or rehabilitate tens of thousands of COAH housing units over the last three decades,” said Matt Reilly, president and chief executive officer of Moorestown Ecumenical Neighborhood Development and treasurer of the Network Board of Directors. “Recent statistics show that 59 percent of New Jersey renters cannot afford the current fair market rents in our state. In the absence of a new alternative source of revenue for the Affordable Housing Trust Fund, the abolition of the Realty Transfer Fee will be a harsh blow to the affordable housing hopes of hard-working families, senior citizens and people with special needs.”

The Housing and Community Development Network supports New Jersey’s community development sector, collaborating with more than 250 members including Community Development Corporations and other organizations to create affordable homes, expand economic opportunities, and build strong communities. For more information on the Network, visit

For more information:  Nina Arce
(609) 393-3752 x12
(609) 789-7900
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