Affordable Housing Trust Fund- Neighborhood Partnerships Fund RFP Grant

The Affordable Housing Trust Fund Program aims to support municipalities and developers in creating affordable housing across New Jersey. By leveraging state and local investments, the program prioritizes projects in Qualified Urban Aid towns that enhance community development. With funding derived from realty transfer fees, the maximum subsidy per project is $3 million, structured as a soft loan. This initiative fosters public-private partnerships and encourages innovative housing solutions to meet critical needs.

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. 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. Funding for the program is generated from a portion of realty transfer fees that is deposited into the NJ Affordable Housing Trust Fund.
Affordable Housing Trust Fund- Neighborhood Partnerships Fund RFP
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 TransportationOpportunity 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 InstitutionsPhilanthropic FoundationsAnchor institutions such as hospitalsOther private partners

The maximum subsidy available per project through the Municipal Settlement and Neighborhood Partnership Funds is $3,000,000. Financing will be structured as a soft second amortizing loan at 1% with a term equal to the affordability control period. Annual repayment is 50% of positive cash flow, if available. Developer’s fee will not exceed 8% of the project’s total development cost.