Today, the New Jersey legislature approved the final budget deal and sent the FAIR Act — which would ban algorithmic rent software used by landlords to manipulate the market and coordinate rent increases — to Gov. Sherrill’s desk.
“This is not only an issue of fairness and transparency — it’s a civil rights issue,” said Al-Tariq Witcher, managing director of external affairs at Fair Share Housing Center. “Algorithmic rent-setting software can reinforce longstanding housing inequities and make it even harder for historically marginalized communities to access affordable homes. When landlords use these tools to coordinate rent increases, it doesn’t just distort the market — it puts stable housing even further out of reach for working families. We’re grateful to the sponsors and both houses for passing this legislation and urge Governor Sherrill to quickly sign it into law.”
Several other housing-related bills were passed by one or both chambers today — including A3481, which would increase eviction filing fees to discourage frivolous eviction actions while creating a dedicated funding source for homelessness prevention services. Although the bill has not yet passed the Senate, advocates are hoping to enact the measure into law — along with other key bills to protect tenants and reform outdated zoning laws — this year.
While this year’s budget is an improvement over the complete diversion of the Affordable Housing Trust Fund that occurred last year, it is concerning that most of that fund remains unavailable for affordable housing production. Only $36 million is expected to be available for affordable home production in FY 2027 through the trust fund, which is funded through a dedicated portion of NJ’s realty transfer fee and usually collects well over $100 million annually. While this year’s budget retains the increased mansion tax on sales of homes over $2 million from last year, legislation to dedicate 50% of that funding to the Affordable Housing Trust Fund was not included in the final budget deal.
Strong housing funding is particularly important as municipalities across New Jersey are now implementing plans to meet affordable housing needs over the next decade under the state’s landmark new affordable housing law. Thanks to the new law, more municipalities than ever before — the vast majority in the state — are now moving forward with plans to create their fair share of affordable homes. The Affordable Housing Trust Fund is often the only source of financing available for smaller nonprofit affordable housing developments that do not qualify for many federal funding programs.
Unlike last year, the budget does include separate dedicated sources of funding for the First-Time and First-Generation Homeownership Program — along with an increase from $40 million to $45 million per year — instead of diverting money from the Affordable Housing Trust Fund. Separate from the trust fund, the budget also dedicates $35 million to a new fund for homelessness programs in response to devastating federal cuts, a $10 million increase from the governor’s proposal. However, most of the Affordable Housing Trust Fund will go to the State Rental Assistance Program, which provides important housing support to lower-income households and has seen significant increases in cost due to rising rents.
«New Jersey’s progress on affordable housing must be matched with appropriate investment,» said Witcher. «New Jersey should not be forced to choose between helping families afford housing today and building the homes that will make housing more affordable tomorrow.”
Fair Share Housing Center is urging lawmakers to enact additional housing reforms before the end of the year — especially legislation (S1766/A3535) to facilitate the redevelopment of underutilized office parks and commercial properties into mixed-use communities with affordable housing, and legislation (S1836) to make it easier for faith-based organizations and nonprofit institutions to develop affordable homes on their properties.
«New Jersey’s new affordable housing law has created a framework for producing more homes than ever before, but we need the Affordable Housing Trust Fund to maximize its impact,» added Witcher. «The vast majority of New Jersey’s municipalities have stepped up the plate and enacted plans to create their fair share of affordable homes. But the work is far from finished. We look forward to working with Governor Sherrill and legislative leaders to fully fund affordable housing production and advance the reforms needed to ensure every New Jersey family has access to a safe, stable home.»
