The bill is designed to promote the construction and rehabilitation of affordable housing by utilizing "sweat equity," where future occupants contribute labor to the building process. It establishes a certification process for nonprofits that facilitate these projects, requiring them to demonstrate relevant experience, maintain affordability controls, and promote diversity in participation. The Commissioner of Community Affairs is responsible for approving these nonprofits and providing expedited assistance to ensure that units built with sweat equity count towards municipal affordable housing obligations. The bill also introduces regulatory exemptions for projects involving sweat equity, including waivers for standard adaptability requirements and certain marketing provisions under the Fair Housing Act.

Additionally, the legislation creates the "New Jersey Affordable Housing Trust Fund" to support initiatives that incorporate sweat equity, allowing eligible projects to receive advance funding. The bill mandates the commissioner to adopt rules and regulations within four months of enactment to ensure effective implementation, focusing on facilitating funding for certified nonprofits and determining funding amounts for individual projects. Overall, the bill aims to streamline the development of affordable housing while encouraging community involvement and leveraging nonprofit expertise.

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