Affordable Housing Trust Fund - Innovation Projects RFP Grant

The Affordable Housing Trust Fund Program aims to enhance affordable housing in New Jersey by providing financial support to municipalities and developers. This initiative not only addresses the urgent housing needs of residents but also promotes neighborhood revitalization and economic growth. The Innovation Fund component encourages unique housing solutions, including tiny homes and healthy living projects, particularly for the ALICE population. With a focus on public-private partnerships, the fund seeks to maximize the impact of investments in sustainable housing solutions.

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 to strengthen neighborhoods and stimulate economic development across the state. With this allocation of the Affordable Housing Trust Fund, the NJ Department of Community Affairs (DCA) seeks to support municipalities with court-sanctioned affordable housing settlements in creating needed housing, to build on existing assets and collaborations by funding projects that leverage other state or local investments and public-private partnerships to increase the impact of these funds, and to support innovation and projects that maximize impact. Funding for the program is generated from a portion of the realty transfer fee that is deposited into the NJ Affordable Housing Trust Fund.
Innovation Fund
This fund will provide financing for innovative projects, as well as funds for studies, plans and technical services for municipalities as allowed under the establishing statute for these funds. This fund will prioritize innovative projects that may not fit under the umbrella of the other two funds, such as makerhoods, tiny homes, housing innovations aimed at the Asset Limited, Income Constrained, Employed (ALICE) population, healthy homes, and new technologies. A portion of these funds may also be used for grants to municipalities to create long-term affordable housing plans and for capacity building initiatives, such as the creation of a technical guidance “library” offering case studies and how-to information on the development of new models of housing, changes in redevelopment practices, reducing regulatory barriers that increase construction cost, etc. Approximately 10% of this allocation will be distributed through the Innovation Fund. The maximum subsidy available per project through the Municipal Settlement and Neighborhood Partnership Funds is $3,000,000.

Eligibility

Eligible applicants include municipalities, for-profit and non-profit housing sponsors, individuals, corporations, and limited partnerships, etc.