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Coughlin, Speight sponsored legislation would provide municipalities with incentives to modernize zoning laws

(TRENTON) — With housing prices continuing to rise across New Jersey due to a shortage of available homes, the Assembly Housing Committee advanced Bill A4913, which would provide financial incentives to municipalities to encourage the creation of new housing. Assembly Speaker Craig J. Coughlin and Assemblywoman Shanique Speight sponsored the legislation.

“This bill strikes a critical balance, expanding housing opportunities while ensuring towns have the resources to support that growth,” said Speaker Coughlin (D-Middlesex). “We enacted landmark legislation, A4, last spring that will spur the construction of thousands of new homes throughout the state. Now, we must ensure that our towns have the tools they need to move forward. The construction of additional housing would help stabilize the cost of housing.”

Under the bill, municipalities would become eligible for preferences in certain state aid if they direct their local planning boards to review and update zoning rules to allow for more residential development. A4913 would be a voluntary program, allowing municipalities to decide what strategies work best for their communities.   

“In the past, increasing housing density often meant straining schools, infrastructure, and local services. This legislation would change that by giving municipalities the resources they need to expand housing – ensuring the necessary investments follow,” said Assemblywoman Speight (D-Essex, Hudson). “By providing incentives to municipalities, we are encouraging local leaders to adopt zoning policies that will open doors for more New Jersey residents, because everyone deserves an opportunity to settle down.”

The bill offers a wide set of parameters. Local planning boards could consider changes such as allowing accessory dwelling units, permitting two- and three-family homes in single-family zones, and reducing parking and lot size requirements. Other options include allowing manufactured homes, mixed-use developments, and higher-density housing near transit stops. 

Under the bill, the Department of Community Affairs (DCA) would give funding priority to municipalities that make zoning updates to allow for more housing. The bill would direct the DCA to establish a range of options to determine eligibility for a preference in state aid. Furthermore, the DCA would provide model ordinance templates to help municipalities incorporate these housing strategies into their local zoning codes. 

The legislation would also affect the allocation of funding from the Department of Transportation (DOT) and the Department of Education (DOE). Municipalities that add housing would receive priority for transportation grants, and school districts in participating municipalities can raise their state aid percentage for school construction projects from 40% to 50%.

The incentives provided through this bill would help address the primary concerns municipalities have regarding the rising costs of infrastructure and education when increasing housing density. The bill would offer a balanced approach to addressing the housing crisis, encouraging smart growth and middle-density housing without removing any zoning powers from local governments.