This bill amends New Jersey housing law to reduce the required term of affordability for low- or moderate-income housing units created through middle housing construction or conversion to a minimum of 10 years. This change significantly lowers the previous requirements, which mandated longer affordability terms of 30 or 40 years depending on whether the unit is for sale or rental. The bill also introduces definitions for "middle housing" and "middle housing conversion," clarifying the types of developments eligible for these reduced terms. The intent is to promote density and discourage urban sprawl, making it easier for municipalities to fulfill their affordable housing obligations.

Furthermore, the bill outlines the responsibilities of the New Jersey Housing and Mortgage Finance Agency in establishing affordable housing programs and ensuring compliance with affordability controls. It specifies that newly created rental units must maintain affordability for at least 40 years, while for-sale units must do so for at least 30 years. Additionally, it allows for the extinguishment of deed restrictions on 100 percent affordable rental properties after 30 years under certain conditions, such as refinancing or rehabilitation efforts. The legislation aims to facilitate affordable housing development by providing more flexible terms for middle housing projects and allows for immediate adoption of regulations to implement these changes.

Statutes affected:
Introduced: 52:27D-304, 52:27D-313.3, 52:27D-321