New Jersey Senate Bill S3116

New Jersey 2022-2023 Regular Session

• Introduced: 10/3/22
• Refer: 10/3/22

Caption

Concerns affordable housing requirements and incentivizes development of single family housing with tax credits for developers.

Impact

If enacted, SB 3116 will influence existing state laws regarding affordable housing by mandating that projects receiving state funds reserve at least 20% of their units for low- and moderate-income households. The legislation will require developers to enter into a development agreement with the New Jersey Economic Development Authority, ensuring compliance with conditions set forth in the bill. This could potentially increase the availability of affordable housing units within New Jersey, addressing long-standing concerns over housing shortages.

Summary

Senate Bill 3116, known as the Affordable Single Family Homes Incentive Program Act, aims to incentivize the construction of single-family homes by providing tax credits to developers. The bill establishes a framework that allows for tax credits to be awarded based on a developer's need to close a financing gap for their project. These credits are limited to a maximum of $50 million annually and will be available to projects that meet certain criteria, including adherence to affordable housing requirements and obtaining support from local municipalities at the time of application.

Contention

Supporters of SB 3116 argue that it addresses the urgent need for affordable housing by facilitating the construction of single-family homes in a structured manner, while also ensuring economic viability for developers. However, critics express concerns that the focus on incentivizing development might not adequately address the diverse needs of different municipalities and their unique housing challenges. Additionally, there may be apprehensions regarding the long-term implications of tax incentives on the local economies and housing markets.