New Jersey 2022-2023 Regular Session

New Jersey Senate Bill S325

Introduced
1/11/22  

Caption

Requires NJHMFA to allocate certain portion of federal low-income housing tax credits to certain high-opportunity areas.

Impact

If enacted, the bill is expected to have a significant impact on the state's housing landscape by promoting more equitable access to affordable housing. It encourages developments within high-performing school districts, areas with lower-than-average poverty rates, and locations in proximity to public transit and vital community services. This could lead to a concentration of affordable housing options in neighborhoods that offer better economic mobility and support for families and seniors alike.

Summary

Senate Bill S325 aims to enhance the allocation of federal low-income housing tax credits (LIHTCs) by requiring the New Jersey Housing and Mortgage Finance Agency (NJHMFA) to reserve a minimum of 30 percent of these credits for specific projects in high-opportunity areas. The bill emphasizes the need for these projects to address community needs by aligning them with established fair share housing plans and ensuring they are situated in regions that demonstrate access to essential services and economic opportunity.

Contention

Notable points of contention surrounding S325 include discussions on the appropriateness of designating funds strictly for high-opportunity areas, and concerns about potential inequities in housing distribution. Critics may argue that the criteria set forth could disadvantage lower-income communities that lack the infrastructure or services to qualify as high-opportunity areas, thereby perpetuating existing inequalities in housing access.

Companion Bills

NJ A2759

Same As Requires NJHMFA to allocate certain portion of federal low-income housing tax credits to certain high-opportunity areas.

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