The bill seeks to improve the construction and rehabilitation of affordable housing by incorporating "sweat equity," which allows future occupants to contribute labor to the building process. It requires the Commissioner of Community Affairs to establish an application process for certifying nonprofits as "sweat equity certified nonprofits." These organizations must demonstrate experience in housing projects, maintain affordability for low- and moderate-income households, and promote diversity. The bill also exempts certain existing legal requirements, such as adaptability standards and affirmative marketing provisions, for projects utilizing sweat equity, allowing the nonprofits' affordability controls to substitute for state housing affordability requirements.

Additionally, the bill clarifies definitions related to low- and moderate-income housing based on federal income thresholds and establishes a framework for the New Jersey Affordable Housing Trust Fund to allocate resources for projects addressing the housing needs of these households. It mandates annual audits of the Trust Fund and requires the Department of Community Affairs to report on fund activities. The Commissioner is responsible for creating the certification process and must adopt necessary regulations within four months of the bill's enactment. Municipalities will also receive expedited assistance in counting sweat equity units towards their affordable housing obligations and in accessing municipal and state housing trust funds for these initiatives.

Statutes affected:
Introduced: 52:27D-304, 52:27D-320, 52:27D-123.15