FSHC Calls on Governor Murphy to Maximize Funding, Sign Legislation Creating New Tax Credits for Housing
Statement from Managing Director of External Affairs, Al-Tariq Witcher:
“Slashing the Affordable Housing Trust Fund, which is crucial to mitigating the harms of the ongoing housing affordability crisis, is a big mistake.
Strong housing funding would have been particularly valuable this year, as municipalities are working to develop plans for how to meet affordable housing needs over the next decade. The trust fund is often the only source of funds for smaller developments, which do not qualify for many types of federal funding. The trust fund in this budget is instead being used for programs like first-generation homeownership and the state rental assistance program, which were previously included in the budget in addition to — not instead of — housing production.
“We’re also disappointed that the extra ‘mansion tax’ — which would have initially applied to home sales of more than $1 million, but will now only be increased for sales of more than $2 million — is being used for general purposes, instead of going to the Affordable Housing Trust Fund.
“We will continue to work to restore this funding and call on Governor Murphy to ensure that the maximum amount of funding possible be allocated to the Affordable Housing Trust Fund as opportunities arise.
“We appreciate the leadership of Speaker Coughlin, Majority Leader Ruiz, and the other prime sponsors of A3128/S4071, which passed both houses today. This legislation authorizes the New Jersey Housing and Mortgage Finance Agency (HMFA) to award $100 million a year in previously authorized, but uncommitted, tax credits towards new or rehabilitated housing for the next several years. While these projects differ from the critical projects funded through the Affordable Housing Trust Fund, these tax credits help to fill project financing gaps experienced by certain qualified affordable housing projects. We urge Governor Murphy to sign this important legislation.
“The shortage of affordable housing in New Jersey hurts everyone, especially low-income families and people of color. While the state’s new affordable housing law has been a major step forward, much more needs to be done.”
