Affordable Housing Trust Funds

Amendments to the NJ Fair Housing Act enacted in July 2008 (N.J.S.A. 52:27D-329.2 and -329.3) require each municipality to spend or commit to expend development fees or payment-in-lieu of construction fees in its affordable housing trust fund within four years of the date of collection.  The Act goes on to specify that a municipality that fails to spend or commit to expend development fees or payment-in-lieu fees within four years of the date of collection must transfer the remaining unspent balance at the end of the four-year period to the "New Jersey Affordable Housing Trust Fund."

All municipalities that are or have been authorized to impose and collect development fees from developers of residential property, or payments in lieu of constructing affordable housing and all municipalities authorized to retain and expend non-residential development fees must provide a detailed accounting of all such fees that have been collected and expended since the inception of the municipal authorization to collect and retain fees. Annual reporting must be submitted by February 15th of each year by using the Affordable Housing Monitoring System established by DCA.