The Affordable Housing Trust Fund seeks to support municipalities with court-approved affordable housing settlements in creating much needed housing, build upon existing assets and collaborations through funding projects that leverage other state and local investments, foster public-private partnerships, and support innovation.
Donor Name: New Jersey Department of Community Affairs
State: New Jersey
County: All Counties
Type of Grant: Grant
Deadline: 10/03/2025
Size of the Grant: More than $1 million
Grant Duration: Grant Duration Not Mentioned
Details:
The purpose of the Affordable Housing Trust Fund Program is to provide municipalities, for-profit and non-profit developers with financial assistance to spur the development of affordable housing across the state. These affordable housing developments have the potential to not only provide high-quality, much-needed housing for NJ citizens, but also strengthen neighborhoods and stimulate economic development. Funding for the program is generated from a portion of realty transfer fees that is deposited into the NJ Affordable Housing Trust Fund.
The Affordable Housing Trust Fund will provide funding for affordable rental and homeownership projects with no more than 25 units. Financing will be distributed through pools of funding:
- Municipal Settlement Fund – This fund will help municipalities create smaller-scale projects that fit into the landscapes of their neighborhoods and assist municipalities in fulfilling their court-approved affordable housing settlements. Applicants may be municipalities or developers supported by the municipality, and municipalities will be required to provide leverage in the form of funding from their own Affordable Housing Trust Funds or, where there is no AHTF, in the form of publicly owned property made available at low or no cost, or some other form of investment.
- Neighborhood Partnerships Fund – This fund will support the development of affordable housing in Qualified Urban Aid towns and will prioritize projects that further community development initiatives through:
- Coordinated state investments from DCA or other state agency projects, such as:
- Neighborhood Preservation Program (DCA)
- Neighborhood Revitalization Tax Credit Program (DCA)
- Main Street Program (DCA)
- Transit Villages (Department of Transportation)
- Local Aid and Economic Development (Department of Transportation)
- Opportunity Zone Challenge Grant (Economic Development Authority)
- 21st Century Redevelopment Program (Economic Development Authority) Other State agency investments; and
- Partnerships with private sector investors such as:
- Community Development Financial Institutions
- Philanthropic Foundations
- Anchor institutions such as hospitals
- Other private partners
- Coordinated state investments from DCA or other state agency projects, such as:
Funding Information
The maximum subsidy available per project through the Municipal Settlement and Neighborhood Partnership Funds is $3,000,000.
Eligible Activities
Creation of affordable rental housing or homeownership units in developments of 25 units or fewer (targeted to households below 80% of Area Median Income). Eligible activities include acquisition and new construction, reconstruction or rehabilitation of affordable rental or homeownership units. Eligible costs include hard costs, soft costs and developer fees, and funds can also be used to cover a lease-up reserve. Ineligible costs include:
- Project reserve accounts
- Development, operations or modernization of public housing
- Project or tenant-based rental assistance
- Payment of delinquent taxes, fees, fines or charges
- Payment of court-ordered judgments or governmentally imposed fines
- Projects that can be funded from other sources
Eligibility Criteria
Eligible applicants include municipalities, for-profit and non-profit housing sponsors/developers, corporations, and limited partnerships, etc.
For more information, visit NJDCA.
