2024 Affordable Housing Legislation and Fourth Round Compliance

On March 18, 2024, the affordable housing legislation known jointly as Senate Bill S50 and Assembly Bill A4 passed both houses of the legislature. Governor Murphy signed the bill into law on March 20, 2024. 

The new legislation overhauls the process that municipalities undertake to establish and plan for their constitutionally mandated affordable housing obligation. Most notably, this legislation formally abolishes COAH while transferring its functions to the Department of Community Affairs (DCA) and Housing Mortgage and Finance Agency (HMFA). As a result, the legislation has codified the method for calculating regional and municipal affordable housing needs and returned most of the process from the Courts to state administrative departments. The DCA has been charged with the responsibility of calculating regional and municipal affordable housing obligations for the entire State of New Jersey.

Timeline set forth in new legislation:

• October 20, 2024: Fourth Round of regional need and municipal affordable housing obligations, which have been calculated and published by the DCA (PDF) for every town in New Jersey.
• January 31, 2025: Municipal obligations to be adopted by resolution by the governing body.

1. 48 hours following adoption: Municipality to publish resolution on Program website (the Program is a new Affordable Housing Dispute Program, established by the new legislation)
   1. Note: If the municipality does not meet this deadline, it will be subject to potential exclusionary zoning litigation when its Third Round immunity ends (generally June 30, 2025.)

• February 28, 2025: Final date for an interested party to challenge a municipality’s Fourth Round obligation.

1. Note: An interested party may file a challenge with the Program only after the municipality’s adoption of the binding resolution.

• March 1, 2025: If there is no challenge, this is the date that a municipality’s determination of its Fourth Round obligations will be established by default/without any approval.
• March 31, 2025: In the case of a Program challenge from an interested party, this is the final date for decisions to be provided to the municipality and all involved parties.
• June 30, 2025: Deadline to adopt a Housing Element and Fair Share Plan.

1. 48 hours following adoption or June 30, 2025 (whichever is sooner): Municipality to submit plan through Program website.
   1. Note: If the municipality does not meet this deadline, it will (a) not retain immunity from exclusionary zoning litigation and (b) be subject to review through the declaratory judgment process.
   2. Note: If a municipality has not met this deadline, they may be provided with a grace period. If a grace period is not provided, the municipality may institute an action for declaratory judgment granting it repose in the Superior Court.

• August 31, 2025: Deadline for an interested party to file a response alleging a municipality’s Housing Element and Fair Share Plan are not in compliance with the “Fair Housing Act.”

1. Note: If no response is filed by this date, then the Program shall promptly provide compliance certification to the municipality following an expedited review unless the Housing Element and Fair Share Plan are deemed non-compliant with the “Fair Housing Act.”
2. Note: If challenged, a municipality will have until November 30, 2025, to revise its Housing Element and Fair Share Plan and/or provide an explanation as to why it will not make the requested changes. 

• March 15, 2026: Final date for a municipality to adopt implementing ordinances and resolutions for the Fourth Round of its affordable housing obligations. Alternatively, if a municipality is involved in a continuing dispute by this date, the municipality may wait to adopt implementing ordinances and resolutions until such dispute is resolved.