New Jersey 222nd Legislature Status: Introduced 12 D cosponsors

A 3877 — Establishes certain State funding preferences for municipalities that enhance opportunities to develop housing.

Last action — APP

  1. 1
    Introduced
  2. 2
    In Committee
  3. 3
    Passed General Assembly
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill has been introduced in the General Assembly. Introduced January 13, 2026. It must pass committee before a floor vote.

Next likely step: a committee referral and hearing.

Odds of enactment

Low chance

Based on the sponsor, cosponsors, and committee posture, this bill has a low chance of becoming law.

Upgrade to see the exact probability and what's driving it.

A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.

Prognosis

Advancing 38% · moderate confidence

  • Introduced

    Current position in the legislative process.

  • 13 sponsors

    4 primary, 9 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (12 D).

  • Cleared a recorded vote

    Passed 3 recorded votes so far.

Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.

In plain language

The bill establishes state funding preferences for municipalities that develop housing opportunities.

This bill creates funding preferences to support municipalities that enhance housing development. By prioritizing these municipalities, the state aims to encourage more housing projects.

What this means for you
  • Families: This means families may have more housing options as municipalities receive support for development projects.

Summary

Develop housing-estab cert St funding preference, mun that enhance opportunities

Bill Text

What changed in the latest version

299 added · 246 removed

Plain-language change summary

The amended version of the bill clarifies the definition of "competitively-awarded financial assistance" by removing the exclusions related to applications from multiple municipalities and other entities. It also specifies that the term applies only to programs funded by State funds and does not include programs for fair share housing obligations or those supporting shared services and consolidation. This change impacts the scope of financial assistance available to municipalities, focusing it more narrowly on specific types of programs.

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A3877 ASSEMBLY, No.
A3877 1R [First Reprint] ASSEMBLY, No.
COUGHLIN District 19 (Middlesex) Assemblywoman SHANIQUE SPEIGHT District 29 (Essex and Hudson) Assemblywoman VERLINA REYNOLDS-JACKSON District 15 (Hunterdon and Mercer)   Co-Sponsored by:
COUGHLIN District 19 (Middlesex) Assemblywoman SHANIQUE SPEIGHT District 29 (Essex and Hudson) Assemblywoman VERLINA REYNOLDS-JACKSON District 15 (Hunterdon and Mercer) Senator  RAJ MUKHERJI District 32 (Hudson)   Co-Sponsored by:
Assemblymen Karabinchak, Stanley and Venezia         SYNOPSIS      Establishes certain State funding preferences for municipalities that enhance opportunities to develop housing.
Assemblymen Karabinchak, Stanley, Venezia, Assemblywomen Rowan, Carter, Assemblyman Calabrese, Assemblywoman Haider, Assemblyman Sampson and Assemblywoman Brennan         SYNOPSIS      Establishes certain State funding preferences for municipalities that enhance opportunities to develop housing.
  CURRENT VERSION OF TEXT      Introduced Pending Technical Review by Legislative Counsel.
  CURRENT VERSION OF TEXT      As reported by the Senate Budget and Appropriations Committee on June 28, 2026, with amendments.
        2.   (New section)  a.  As used in this section:
     2.    (New section)  a.  As used in this section:
      "Department" means the Department of Community Affairs [;].
     "Department" means the Department of Community Affairs.
      "Grant or other type of competitively-awarded financial assistance" means all types of competitively-awarded financial assistance that the department or another State agency may distribute to one or more municipalities pursuant to a program administered by the department or other State agency that is solely funded by State funds, other than a program:
     "Grant or other type of competitively-awarded financial assistance" means all types of competitively-awarded financial assistance that the department or another State agency may distribute to one or more municipalities pursuant to a program administered by the department or other State agency that is solely funded by State funds, other than a program:
      (1)  that awards funds to help a municipality fulfill its fair share housing obligation pursuant to P.L.1985, c.222 (C.52:27D-301 et al.);
     (1)  that awards funds to help a municipality fulfill its fair share housing obligation pursuant to P.L.1985, c.222 (C.52:27D-301 et al.);
      (2)  administered by the department and that awards funds to municipalities in support of shared services and consolidation;
     (2)  administered by the department and that awards funds to municipalities in support of shared services and consolidation;
      (3)  where multiple municipalities may join a single application for competitively-awarded financial assistance;
     (3)  where multiple municipalities may join a single application for competitively-awarded financial assistance;
or       (4)  where other entities in addition to municipalities may apply for competitively-awarded financial assistance.
or      (4)  where other entities in addition to municipalities may apply for competitively-awarded financial assistance.
      "Grant or other type of competitively-awarded financial assistance" shall include, but shall not be limited to, the Neighborhood Preservation Program established pursuant to P.L.1975, c.248 (C.52:27D-142 et seq.).
     "Grant or other type of competitively-awarded financial assistance" shall include, but shall not be limited to, the Neighborhood Preservation Program established pursuant to P.L.1975, c.248 (C.52:27D-142 et seq.).
      "State agency" means any department, division, office, board, commission, council, or bureau in the Executive branch of State government.
     "State agency" means any department, division, office, board, commission, council, or bureau in the Executive branch of State government.
      b.   (1)  Notwithstanding any provision of law, rule, or regulation to the contrary, when determining the eligibility of a municipality to receive a grant or other type of competitively-awarded financial assistance, the department shall establish a preference for those municipalities that have amended their development regulations pursuant to section 1 of P.L.    , c.    (C.        ) (pending before the Legislature as this bill) to allow for the use of additional housing strategies and have thereby increased the number of housing units permitted for development within the municipality.  Funds awarded under the Transitional Aid to Localities program or any successor discretionary aid program pursuant to P.L.2011, c.144 (C.52:27D-118.42a), as Consolidated Municipal Property Tax Relief Aid, or as Energy Tax Receipts Property Tax Relief Aid shall not be considered a type of competitively-awarded financial assistance under the provisions of P.L.    , c.    (C.        ) (pending before the Legislature as this bill).
     b.    (1)  Notwithstanding any provision of law, rule, or regulation to the contrary, when determining the eligibility of a municipality to receive a grant or other type of competitively-awarded financial assistance, the department shall establish a preference for those municipalities that have amended their development regulations pursuant to section 1 of P.L.    , c.    (C.        ) (pending before the Legislature as this bill) to allow for the use of additional housing strategies and have 1[thereby] reasonably1 increased the 1[number] rate1 of housing units permitted for development within the municipality.  Funds awarded under the Transitional Aid to Localities program or any successor discretionary aid program pursuant to P.L.2011, c.144 (C.52:27D-118.42a), as Consolidated Municipal Property Tax Relief Aid, or as Energy Tax Receipts Property Tax Relief Aid shall not be considered a type of competitively-awarded financial assistance under the provisions of P.L.    , c.    (C.        ) (pending before the Legislature as this bill).
      (2) Notwithstanding any provision of law, rule, or regulation to the contrary, the department shall publish on the department’s Internet website a list of municipalities that have amended their development regulations pursuant to section 1 of P.L.    , c.    (C.        ) (pending before the Legislature as this bill) to allow for the use of additional housing strategies and that have increased the number of housing units permitted for development in the municipality.  The department shall, in a manner determined by the department, order the municipalities within three tier categories based on the impact of, and the amount of changes made, relative to the municipalities’ planning areas.  The department shall update this list on a quarterly basis.  Each State agency that awards a grant or other type of competitively-awarded financial assistance to a municipality shall utilize this list to establish an award preference for those municipalities that have amended their development regulations pursuant to section 1 of P.L.    , c.    (C.        ) (pending before the Legislature as this bill) to allow for the use of additional housing strategies and have increased the number of housing units permitted for development within the municipality.        c.   The Department of Community Affairs, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), shall adopt rules and regulations it deems necessary or desirable to effectuate sections 1 and 2 of P.L.    , c.    (C.         and C.        ) (pending before the Legislature as this bill), which rules and regulations shall:
     (2)  Notwithstanding any provision of law, rule, or regulation to the contrary, the department shall publish on the department’s Internet website a list of municipalities that have amended their development regulations pursuant to section 1 of P.L.    , c.    (C.        ) (pending before the Legislature as this bill) to allow for the use of additional housing strategies and 1[that]1 have 1reasonably1 increased the 1[number] rate1 of housing units permitted for development in the municipality.  The department shall, in a manner determined by the department, order the municipalities within three tier categories based on the impact of, and the amount of changes made, relative to the municipalities’ planning areas.  The department shall update this list on a quarterly basis.  Each State agency that awards a grant or other type of competitively-awarded financial assistance to a municipality shall utilize this list to establish an award preference for those municipalities that have amended their development regulations pursuant to section 1 of P.L.    , c.    (C.        ) (pending before the Legislature as this bill) to allow for the use of additional housing strategies and have 1reasonably1 increased the 1[number] rate1 of housing units permitted for development within the municipality.       c.    The Department of Community Affairs, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), shall adopt rules and regulations it deems necessary or desirable to effectuate sections 1 and 2 of P.L.    , c.    (C.         and C.        ) (pending before the Legislature as this bill), which rules and regulations shall:
      (1) specify the types and number of housing strategies appropriate for use by a municipality based upon the municipality’s planning region, as identified within the most recently adopted State Development and Redevelopment Plan;
     (1)  specify the types and number of housing strategies appropriate for use by a municipality based upon the municipality’s planning region, as identified within the most recently adopted State Development and Redevelopment Plan;
      (2) specify a range of values to be accorded to municipalities determined to be eligible for a preference in financial assistance competitively awarded by the State pursuant to P.L.    , c.    (C.        ) (pending before the Legislature as this bill), based upon the number of additional housing units permitted for development and the types of housing strategies adopted pursuant to P.L.    , c.    (C.        ) (pending before the Legislature as this bill);
     (2)  specify a range of values to be accorded to municipalities determined to be eligible for a preference in financial assistance competitively awarded by the State pursuant to P.L.    , c.    (C.        ) (pending before the Legislature as this bill), based upon the number of additional housing units permitted for development and the types of housing strategies adopted pursuant to P.L.    , c.    (C.        ) (pending before the Legislature as this bill);
and       (3) provide a housing siting and best practices guide for the purpose of assisting municipalities opting to incorporate one or more of the housing strategies identified in P.L.    , c.    (C.        ) (pending before the Legislature as this bill) into their ordinances.
and      (3)  provide a housing siting and best practices guide for the purpose of assisting municipalities opting to incorporate one or more of the housing strategies identified in P.L.    , c.    (C.        ) (pending before the Legislature as this bill) into their ordinances.
       3.  (New section)  The Commissioner of Transportation, in determining the allocation of funds for municipal projects from the "Transportation Trust Fund Account," established by section 20 of P.L.1984, c.73 (C.27:1B-20), shall establish a criterion to provide, at the commissioner’s discretion, within the schedule of all other criteria for prioritization, as provided in section 25 of P.L.1984, c.73 (C.27:1B-25), a preference for those municipalities that have amended their master plan and development regulations pursuant to section 1 of P.L.    , c.    (C.         ) (pending before the Legislature as this bill) to allow for the use of additional housing strategies and have thereby increased the number of housing units permitted for development within the municipality.
       3.    (New section)  The Commissioner of Transportation, in determining the allocation of funds for municipal projects from the "Transportation Trust Fund Account," established by section 20 of P.L.1984, c.73 (C.27:1B-20), shall establish a criterion to provide, at the commissioner’s discretion, 1[within the schedule of all other criteria for prioritization, as provided in section 25 of P.L.1984, c.73 (C.27:1B-25)] and in conformance with the criteria established by the Department of Community Affairs pursuant to section 2 of P.L.    , c.    (C.        ) (pending before the Legislature as this bill1 , a preference for those municipalities that have amended their master plan and development regulations pursuant to section 1 of P.L.    , c.    (C.         ) (pending before the Legislature as this bill) to allow for the use of additional housing strategies and have 1[thereby] reasonably1 increased the 1[number] rate1 of housing units permitted for development within the municipality.
       4.  Section 9 of P.L.2000, c.72 (C.18A:7G-9) is amended to read as follows:
       1[4.  Section 9 of P.L.2000, c.72 (C.18A:7G-9) is amended to read as follows:
P.L.2023, c.311, s.6)        5.  Section 15 of P.L.2000, c.72 (C.18A:7G-15) is amended to read as follows:
P.L.2023, c.311, s.6)]1        14.   Section of P.L.2000, c.72 (C.18A:7G-13) is amended to read as follows:
     13.  a.  The financing authority shall be responsible for the issuance of bonds pursuant to section 14 of P.L.2000, c.72 (C.18A:7G-14) and the development authority shall be responsible for the planning, design, construction management, acquisition, construction, and completion of school facilities projects.  In the case of a capital maintenance project, the development authority may, in its discretion, authorize an SDA district to undertake the design, acquisition, construction and all other appropriate actions necessary to complete the capital maintenance project and shall enter into a grant agreement with the district for the payment of the State share.  Until the expiration date established pursuant to subsection b.
of section 6 of P.L.    , c.    (C.        ) (pending before the Legislature as this bill), the State share may be increased by no more than percent and may not exceed the total cost of the project in a municipality that has amended its master plan and development regulations pursuant to section of P.L.    , c.    (C.        ) (pending before the Legislature as this bill) to allow for the use of additional housing strategies and have reasonably increased the rate of housing units permitted for development within the municipality.  This additional funding, until the expiration date established pursuant to subsection b.
of section 6 of P.L.    , c.     (C.        ) (pending before the Legislature as this bill), is subject to the availability of new funding made available through State or federal appropriations or funds derived from school construction bonds approved by voters following the effective date of P.L.    , c.    (C.        ) (pending before the Legislature as this bill).
The development authority may also authorize an SDA district to undertake the design, acquisition, construction and all other appropriate actions necessary to complete any other school facilities project in accordance with the procedures established pursuant to subsection e.
of this section.
     b.    The financing authority shall undertake the financing of school facilities projects pursuant to the provisions of this act.  The financing authority shall finance the State share of a school facilities project and may, in its discretion and upon consultation with the district, finance the local share of the project.
In the event that the financing authority finances only the State share of a project, the development authority shall not commence acquisition or construction of the project until the development authority receives the local share from the district.
     c.    In order to implement the arrangements established for school facilities projects which are to be constructed by the development authority and financed pursuant to this section, a district shall enter into an agreement with the development authority and the commissioner containing the terms and conditions determined by the parties to be necessary to effectuate the project.
     d.    Upon completion by the development authority of a school facilities project, the district shall enter into an agreement with the development authority to provide for the maintenance of the project by the district.  In the event that the school facilities project is constructed by a district, upon the completion of the project, the district shall submit to the commissioner a plan to provide for the maintenance of the project by the district.  Any agreement or plan shall contain, in addition to any other terms and provisions, a requirement for the establishment of a maintenance reserve fund consistent with the appropriation and withdrawal requirements for capital reserve accounts established pursuant to section 57 of P.L.2000, c.72 (C.18A:7G-31), the funding levels of which shall be as set forth in regulations adopted by the commissioner pursuant to section 26 of P.L.2000, c.72 (C.18A:7G-26).
     e.
(1) Within one year of the effective date of P.L.2007, c.137 (C.52:18A-235 et al.), the commissioner, in consultation with the development authority, shall adopt pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations by which the commissioner shall determine whether an SDA district is eligible to be considered by the development authority to manage a school facilities project or projects.  In making the determination, the commissioner shall consider the district's fiscal integrity and operations, the district's performance in each of the five key components of school district effectiveness under the New Jersey Quality Single Accountability Continuum (NJQSAC) in accordance with section 10 of P.L.1975, c.212 (C.18A:7A-10), and other relevant factors.
     (2)  Within one year of the effective date of P.L.2007, c.137 (C.52:18A-235 et al.), the development authority, in consultation with the commissioner, shall adopt pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations by which the development authority shall determine the capacity of an SDA district, deemed eligible by the commissioner pursuant to paragraph (1) of this subsection, to manage a school facilities project or projects identified by the development authority.  In making the determination, the development authority shall consider the experience of the SDA district, the size, complexity, and cost of the project, time constraints, and other relevant factors.
     (3)  The development authority, in consultation with the commissioner, shall develop and implement training programs, seminars, or symposia to provide technical assistance to SDA districts deemed to lack the capacity to manage a school facility project or projects;
except that nothing herein shall be construed to require the development authority or the commissioner to authorize an SDA district to hire additional staff in order to achieve capacity.
     (4)  If the development authority determines to delegate a school facilities project to an SDA district in accordance with paragraph (2) of this subsection, the development authority, the commissioner, and the district shall enter into a grant agreement.
The grant agreement shall, at a minimum, establish a timeline for the completion of the school facilities project, which timeline shall be established based on the scope of the work to be performed.
     (5) If the development authority determines to delegate a school facilities project to an SDA district in accordance with paragraph (2) of this subsection, the SDA district shall be deemed to be in noncompliance with the grant agreement entered into pursuant to paragraph (4) of this subsection if the district enters into a contract with a contractor, subcontractor, or consultant which is debarred, suspended, or disqualified from State, development authority, or federal government contracting at the time of the contract award or with a firm which has not been prequalified by the development authority.
If the district enters into a contract with a debarred, suspended, or disqualified contractor, subcontractor, or consultant, then the grant agreement shall be rendered null and void.1 (cf:
P.L.2023, c.311, s.8)        5.    Section 15 of P.L.2000, c.72 (C.18A:7G-15) is amended to read as follows:
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of this section rather than annual debt service aid under section 9 of P.L.2000, c.72 (C.18A:7G-9).  The State share payable to the district shall equal the product of the project's final eligible costs and the district aid percentage or 40 percent, whichever is greater.  If the project's design incorporates the implementation of energy efficiency improvements or the installation of energy efficient features or equipment, the district aid percentage shall be increased by no more than five percent.  In order to qualify for a district aid percentage increase for the implementation of energy efficiency improvements or the installation of energy efficient features or equipment pursuant to this subsection, a district shall submit to the development authority and Department of Education a certification, along with evidential documentation, attesting that the project's design incorporates the implementation of energy efficiency improvements or the installation of energy efficient features or equipment.  In addition, the district aid percentage for a school facilities project that is approved by the commissioner following the effective date of P.L.    , c.    (C.        ) (pending before the Legislature as this bill) may be increased by no more than 10 percent if the school district submitting the school facilities project is located in a municipality which has amended its master plan and development regulations pursuant to section 1 of P.L.    , c.    (C.        ) (pending before the Legislature as this bill) to allow for the use of additional housing strategies and have thereby increased the number of housing units permitted for development within the municipality.  A regional school district may be eligible for a district aid percentage increase if one or more constituent municipalities of the regional school district has amended its master plan and development regulations pursuant to section 1 of P.L.    , c.    (C.       ) (pending before the Legislature as this bill) to allow for the use of additional housing strategies and have thereby increased the number of housing units permitted for development in the municipality, provided that the district aid percentage increase shall be no more than 10 percent and that the maximum district aid percentage increase due to any one constituent municipality’s amendment of its master plan and development regulations is calculated in proportion to the constituent municipality’s share of the overall resident enrollment of the regional school district.  The Commissioner of Education and the Commissioner of Community Affairs shall develop a uniform methodology to determine the district aid percentage increase based upon the number of additional housing units permitted for development and the types of housing strategies adopted pursuant to P.L.    , c.    (C.        ) (pending before the Legislature as this bill).  In order to qualify for a district aid percentage increase pursuant to this subsection, a school district shall submit documentation verifying that the appropriate municipalities have adopted the requisite changes to their master plans and development regulations.
of this section rather than annual debt service aid under section 9 of P.L.2000, c.72 (C.18A:7G-9).  The State share payable to the district shall equal the product of the project's final eligible costs and the district aid percentage or 40 percent, whichever is greater.  If the project's design incorporates the implementation of energy efficiency improvements or the installation of energy efficient features or equipment, the district aid percentage shall be increased by no more than five percent.  In order to qualify for a district aid percentage increase for the implementation of energy efficiency improvements or the installation of energy efficient features or equipment pursuant to this subsection, a district shall submit to the development authority and Department of Education a certification, along with evidential documentation, attesting that the project's design incorporates the implementation of energy efficiency improvements or the installation of energy efficient features or equipment.  In addition, 1until the expiration date established pursuant to subsection b.
of section 6 of P.L.    , c.    (C.        ) (pending before the Legislature as this bill),1 the district aid percentage for a school facilities project that is approved by the commissioner following the effective date of P.L.    , c.    (C.        ) (pending before the Legislature as this bill) 1and located in a municipality that has amended its master plan and development regulations pursuant to section 1 of P.L.    , c.    (C.        ) (pending before the Legislature as this bill) to allow for the use of additional housing strategies and have reasonably increased the rate of housing units permitted for development within the municipality1 may be increased by no more than 10 percent 1[if the school district submitting the school facilities project is located in a municipality which has amended its master plan and development regulations pursuant to section 1 of P.L.    , c.    (C.        ) (pending before the Legislature as this bill) to allow for the use of additional housing strategies and have thereby reasonably increased the number rate of housing units permitted for development within the municipality] such that the district aid percentage shall not be less than 44 percent subject to the availability of new funding made available through State or federal appropriations or funds derived from school construction bonds approved by voters following the effective date of P.L.    , c.    (C.        ) (pending before the Legislature as this bill)1 .  A regional school district may be eligible for a district aid percentage increase if one or more constituent municipalities of the regional school district has amended its master plan and development regulations pursuant to section 1 of P.L.    , c.    (C.       ) (pending before the Legislature as this bill) to allow for the use of additional housing strategies and have 1[thereby] reasonably1 increased the 1[number] rate1 of housing units permitted for development in the municipality, provided that the district aid percentage increase shall be no more than 10 percent and that the maximum district aid percentage increase due to any one constituent municipality’s amendment of its master plan and development regulations is calculated in proportion to the constituent municipality’s share of the overall resident enrollment of the regional school district.  The Commissioner of Education and the Commissioner of Community Affairs shall develop a uniform methodology to determine the district aid percentage increase based upon the number of additional housing units permitted for development and the types of housing strategies adopted pursuant to P.L.    , c.    (C.        ) (pending before the Legislature as this bill).  In order to qualify for a district aid percentage increase pursuant to this subsection, a school district shall submit documentation verifying that the appropriate municipalities have adopted the requisite changes to their master plans and development regulations.
     c.    The development authority shall provide grant funding for the State's share of the final eligible costs of a school facilities project pursuant to an agreement between the district and the development authority which shall, in addition to other terms and conditions, set forth the terms of disbursement of the State share.  The funding of the State share shall not commence until the district secures financing for the local share.
     c.    The development authority shall provide grant funding for the State's share of the final eligible costs of a school facilities project pursuant to an agreement between the district and the development authority which shall, in addition to other terms and conditions, set forth the terms of disbursement of the State share.
 The funding of the State share shall not commence until the district secures financing for the local share.
P.L.2023, c.311, s.10)        6.  This act shall take effect on the first day of the ninth month next following enactment, except that the Commissioner of Community Affairs, and the commissioners of other State departments impacted by this act may take anticipatory administrative action in advance as shall be necessary for the implementation of this act.
P.L.2023, c.311, s.10)        16.   (New section)  a.  No later than four years following the date of enactment of P.L.    , c.    (C.        ) (pending before the Legislature as this bill), the Commissioner of Community Affairs and the Commissioner of Transportation shall submit a report to the Legislature, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), and to the Governor making recommendations concerning whether to continue the existing priorities established pursuant to P.L.    , c.    (C.        ) (pending before the Legislature as this bill) or to propose new priorities.
    STATEMENT        This bill establishes a program to incentivize municipalities to amend their master plans and development regulations by incorporating certain housing strategies for the purpose of enhancing the development potential of property for residential purposes at greater densities.
     b.    The provisions of P.L.    , c.    (C.        ) (pending before the Legislature as this bill) shall expire five years from the date of enactment.1        1[6.] 7.1  This act shall take effect on the first day of the ninth month next following enactment, except that the Commissioner of Community Affairs, and the commissioners of other State departments impacted by this act may take anticipatory administrative action in advance as shall be necessary for the implementation of this act.
     Under the bill, the governing body of a municipality that is interested in qualifying for preferential status in the distribution of financial assistance competitively awarded by the State pursuant to the bill may direct the municipal planning board to undertake and provide for a special reexamination of the municipality’s master plan and development regulations.  A planning board directed to undertake and provide for a special reexamination of the municipality’s master plan and development regulations is to, at a minimum, review the provisions of the municipality’s existing master plan and development regulations that address areas of the municipality within which residential development is permitted, and is authorized to consider recommending specific changes to the master plan and development regulations for the purpose of enhancing the potential development of the municipality for residential purposes.  The bill provides that a planning board undertaking a special reexamination of the municipality’s master plan and development regulations is also authorized to consider whether to include in the master plan and development regulations one or more housing strategies that may enhance the development potential of property for residential purposes at greater densities.  The bill identifies housing strategies to potentially be considered by a planning board conducting a special reexamination.
     A planning board that has undertaken a special reexamination of the municipality’s master plan and development regulations is required to prepare and adopt by resolution a report on the findings of the special reexamination, a copy of which is to be sent to the Division of Local Planning Services in the Department of Community Affairs (DCA), the Office of Planning Advocacy, and the county planning board.
     If a special reexamination report recommends changes to a municipality’s existing master plan, the bill requires the planning board to forward its recommendations to the governing body, which is to, by resolution, accept, reject, or modify the recommendations and direct the planning board to commence the process of amending the master plan.  This procedure requires the planning board to hold a hearing on the proposed amendments after providing public notice of the hearing.
     If a planning board amends a master plan pursuant to the bill, the governing body of the municipality is authorized to commence the process of amending the municipality’s zoning ordinance for the purpose of making the ordinance substantially consistent with the land use plan element and the housing plan element of the municipality’s master plan.
     The bill provides that, within 45 business days following the date of adoption of any revisions to the municipality’s zoning or other land development ordinances, the clerk of the municipality is to transmit copies of the ordinances to the Division of Local Planning Services in the DCA.  If a municipality has already adopted ordinances substantially similar to the bill’s requirements, the municipality is to transmit copies of the ordinances to the Division of Local Planning Services in the DCA for evaluation in preferential status determinations.
     The bill directs the DCA to establish a preference in the award of State financial assistance for those municipalities that have amended their development regulations pursuant to the bill to allow for the use of additional housing strategies and have thereby increased the number of housing units permitted for development.  The preference is to apply to all types of competitively-awarded financial assistance that the DCA may distribute to one or more municipalities pursuant to a program administered by the DCA, other than a program that awards funds to help a municipality fulfill its fair share housing obligation.  The bill specifically identifies the Neighborhood Preservation Program, established pursuant to P.L.1975, c.248 (C.52:27D-142 et seq.) as State financial assistance programs subject to the bill’s provisions.  Funds awarded under the Transitional Aid to Localities program or any successor discretionary aid program pursuant to P.L.2011, c.144 (C.52:27D-118.42), as Consolidated Municipal Property Tax Relief Aid, or as Energy Tax Receipts Property Tax Relief Aid are not to be considered a type of competitively-awarded financial assistance under the provisions the bill.
     Additionally, the bill directs the DCA to publish on the DCA’s Internet website a list of municipalities that have amended their development regulations pursuant to the bill to allow for the use of additional housing strategies and have increased the number of housing units permitted for development in the municipality.  The DCA is to, in a manner determined by the DCA, order the municipalities within three tier categories based on the impact of, and the amount of changes made, relative to their planning area.  The DCA is required to update the list on a quarterly basis.  Each State agency that awards a grant or other type of competitively-awarded financial assistance to municipalities is to utilize this list to establish an award preference for those municipalities that have amended their development regulations pursuant to the bill to allow for the use of additional housing strategies and have increased the number of housing units permitted for development within the municipality.
     The bill directs the DCA to adopt rules and regulations, as specified in the bill, and as the DCA deems necessary or desirable to effectuate these provisions of the bill.
     Additionally, the bill provides that the Commissioner of Transportation, in determining the allocation of funds for municipal projects from the "Transportation Trust Fund Account" is to establish a criterion to provide, at the commissioner’s discretion, priority consideration to municipalities that implement the provisions of this bill, within the schedule of all other criteria for prioritization.  Current law provides that that the Commissioner of Transportation may consider several criteria in allocating monies from the Transportation Trust Fund for county and municipal transportation projects.
     Finally, the bill permits increases in a school district’s district aid percentage for the purposes of the calculations of the State share of a school facilities project for those municipalities that implement the provisions of this bill.  The bill permits increases to a school district’s district aid percentage of no more than 10 percent if the school district is within a municipality that has implemented the provisions of the bill.  Under the bill, a regional school district may be eligible for a district aid percentage increase if one or more constituent municipalities of the district has implemented the provisions of the bill.  The increase for a regional district, however, may not exceed 10 percent, and the maximum district aid percentage increase due to any one constituent municipality’s implementation of the bill is to be calculated in proportion to the constituent municipality’s share of the overall resident enrollment of the regional school district.
     The bill directs the Commissioner of Education and the Commissioner of Community Affairs to develop a uniform methodology to determine the district aid percentage increase for school districts if a municipality has implemented the provisions of the bill.
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How this bill changes current law

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AI-generated reading aid from the bill's amendatory text — verify against the official bill.

This bill amends 4 section(s) of the New Jersey statutes: N.J.S.A. 27:1B-20; N.J.S.A. 18A:7G-9; N.J.S.A. 18A:7G-13; N.J.S.A. 18A:7G-15.

  • N.J.S.A. 27:1B-20

    within the schedule of all other criteria for prioritization, as provided in section 25 of P.L.1984, c.73 (C.27:1B-25) thereby number → and in conformance with the criteria established by the Department of Community Affairs pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill reasonably rate

    added

  • N.J.S.A. 18A:7G-9

    . In addition, DAP for a school facilities project that is approved by the commissioner following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) may be increased by no more than 10 percent if the school district submitting the school facilities project is located in a municipality which has amended its master plan and development regulations pursuant section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill) to allow for the use of additional housing strategies, and has thereby increased the number of housing units permitted for development within the municipality. A regional school district may be eligible for a DAP increase if one or more constituent municipalities of the regional school district have each amended its master plan and development regulations pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill) to allow for the use of additional housing strategies and have thereby increased the number of housing units permitted for development within the municipality, provided that the DAP increase shall be no more than 10 percent and that the maximum DAP increase due to any one constituent municipality's amendment of its master plan and development regulations pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill) is calculated in proportion to the constituent municipality's share of the overall resident enrollment of the regional school district. The Commissioner of Education and the Commissioner of Community Affairs shall develop a uniform methodology to determine a school district's eligibility for a DAP increase based upon the number of additional housing units permitted for development and the types of housing strategies adopted pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill). In order to qualify for a DAP increase under this paragraph, a school district shall submit documentation verifying that the appropriate municipalities have adopted the requisite changes to their master plans and development regulations

    amended

  • N.J.S.A. 18A:7G-13

    Until the expiration date established pursuant to subsection b. of section 6 of P.L. , c. (C. ) (pending before the Legislature as this bill), the State share may be increased by no more than 10 percent and may not exceed the total cost of the project in a municipality that has amended its master plan and development regulations pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill) to allow for the use of additional housing strategies and have reasonably increased the rate of housing units permitted for development within the municipality. This additional funding, until the expiration date established pursuant to subsection b. of section 6 of P.L. , c. (C. ) (pending before the Legislature as this bill), is subject to the availability of new funding made available through State or federal appropriations or funds derived from school construction bonds approved by voters following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill).

    amended

  • N.J.S.A. 18A:7G-15

    ⟦INS⟧thereby⟦/INS⟧ ⟦INS⟧number⟦/INS⟧ → In addition, until the expiration date established pursuant to subsection b. of section 6 of P.L. , c. (C. ) (pending before the Legislature as this bill), the district aid percentage for a school facilities project that is approved by the commissioner following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) and located in a municipality that has amended its master plan and development regulations pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill) to allow for the use of additional housing strategies and have reasonably increased the rate of housing units permitted for development within the municipality may be increased by no more than 10 percent if the school district submitting the school facilities project is located in a municipality which has amended its master plan and development regulations pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill) to allow for the use of additional housing strategies and have thereby reasonably increased the number rate of housing units permitted for development within the municipality such that the district aid percentage shall not be less than 44 percent subject to the availability of new funding made available through State or federal appropriations or funds derived from school construction bonds approved by voters following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) . A regional school district may be eligible for a district aid percentage increase if one or more constituent municipalities of the regional school district has amended its master plan and development regulations pursuant to section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill) to allow for the use of additional housing strategies and have thereby reasonably increased the number rate of housing units permitted for development in the municipality, provided that the district aid percentage increase shall be no more than 10 percent and that the maximum district aid percentage increase due to any one constituent municipality's amendment of its master plan and development regulations is calculated in proportion to the constituent municipality's share of the overall resident enrollment of the regional school district. The Commissioner of Education and the Commissioner of Community Affairs shall develop a uniform methodology to determine the district aid percentage increase based upon the number of additional housing units permitted for development and the types of housing strategies adopted pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill). In order to qualify for a district aid percentage increase pursuant to this subsection, a school district shall submit documentation verifying that the appropriate municipalities have adopted the requisite changes to their master plans and development regulations.

    amended

Action History

  1. APP

  2. PA PBH

  3. R/A 2RAC

  4. PS

  5. SUB FOR

  6. REP/SCA 2RS

  7. REF SBA

  8. R/S SWR 2RS

  9. PA

  10. REP 2RA

  11. TRANS AOF

  12. INT 1RA REF AHO

Sponsors

Sponsorship breakdown

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4 sponsors · 9 co-sponsors · 107 not signed on · 24 voted No

Sponsors (4)

Co-sponsors (9)

Not signed on (107)

107 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Committee vote — SBA

Passed 9 Yea · 4 Nay
Party YeaNayPresentNot Voting
Democrat 9000
Republican 0400
Total 9400
% of votes cast 69%31%0%0%
How each member voted (13)
Member Party Vote
Burgess, Renee C. Democrat Yea
Burzichelli, John J. Democrat Yea
Cruz-Perez, Nilsa I. Democrat Yea
Diegnan Jr., Patrick J. Democrat Yea
Greenstein, Linda R. Democrat Yea
Johnson, Gordon M. Democrat Yea
Ruiz, M. Teresa Democrat Yea
Sarlo, Paul A. Democrat Yea
Zwicker, Andrew Democrat Yea
Amato Jr., Carmen F. Republican Nay
O'Scanlon Jr., Declan J. Republican Nay
Steinhardt, Douglas J. Republican Nay
Testa Jr., Michael L. Republican Nay

Official roll call →

Floor vote

Passed 58 Yea · 20 Nay · 2 Other
Party YeaNayPresentNot Voting
Democrat 56000
Republican 11902
Unaffiliated 1100
Total 582002
% of votes cast 73%25%0%3%
How each member voted (80)
Member Party Vote
Azzariti Jr., John V. — Nay
Donlon, Margie — Yea
Abdelaziz, Al Democrat Yea
Angelozzi, Anthony Democrat Yea
Bagolie, Rosaura Democrat Yea
Bailey Jr., David Democrat Yea
Bhalla, Ravi S. Democrat Yea
Brennan, Katie Democrat Yea
Calabrese, Clinton Democrat Yea
Carter, Linda S. Democrat Yea
Collazos-Gill, Alixon Democrat Yea
Coughlin, Craig J. Democrat Yea
Danielsen, Joe Democrat Yea
DeAngelo, Wayne P. Democrat Yea
Drulis, Mitchelle Democrat Yea
Egan, Kevin P. Democrat Yea
Freiman, Roy Democrat Yea
Greenwald, Louis D. Democrat Yea
Haider, Shama A. Democrat Yea
Hutchison, Dan Democrat Yea
Kane, Melinda Democrat Yea
Karabinchak, Robert J. Democrat Yea
Katz, Andrea Democrat Yea
Kearney, Vincent M. Democrat Yea
Kennedy, James J. Democrat Yea
Lopez, Yvonne Democrat Yea
Macurdy, Andrew Democrat Yea
McCoy, Tennille R. Democrat Yea
Miller, Cody D. Democrat Yea
Moen Jr., William F. Democrat Yea
Morales, Carmen Theresa Democrat Yea
Murphy, Carol A. Democrat Yea
Onyema, Chigozie U. Democrat Yea
Park, Ellen J. Democrat Yea
Peterpaul Esq., Luanne M. Democrat Yea
Pintor Marin, Eliana Democrat Yea
Quijano, Annette Democrat Yea
Reynolds-Jackson, Verlina Democrat Yea
Rodriguez, Ed Democrat Yea
Rodriguez, Gabriel Democrat Yea
Rowan, Maureen Democrat Yea
Sampson IV, William B. Democrat Yea
Schaer, Gary S. Democrat Yea
Schnall, Alexander Democrat Yea
Simmons, Heather Democrat Yea
Singh, Balvir Democrat Yea
Spearman, William W. Democrat Yea
Speight, Shanique Democrat Yea
Stanley, Sterley S. Democrat Yea
Stewart, Kenyatta Democrat Yea
Swain, Lisa Democrat Yea
Sweeney, Marisa Democrat Yea
Tucker, Cleopatra G. Democrat Yea
Tully, Chris Democrat Yea
Venezia, Michael Democrat Yea
Verrelli, Anthony S. Democrat Yea
Wainstein, Larry Democrat Yea
Walker, Jerry Democrat Yea
Auth, Robert Republican Nay
Barlas, Al Republican Nay
Bergen, Brian Republican Nay
Clifton, Robert D. Republican Nay
DePhillips, Christopher P. Republican Nay
DiMaio, John Republican Nay
Dunn, Aura K. Republican Nay
Fantasia, Dawn Republican Nay
Flynn, Victoria A. Republican Nay
Guardian, Donald A. Republican Yea
Inganamort, Michael Republican Nay
Kanitra, Paul Republican Nay
Kean, Sean T. Republican Not Voting
McClellan, Antwan L. Republican Nay
McGuckin, Gregory P. Republican Nay
Myhre, Gregory E. Republican Nay
Peterson, Erik Republican Nay
Rumpf, Brian E. Republican Nay
Sauickie, Alex Republican Not Voting
Scharfenberger, Gerry Republican Nay
Simonsen, Erik K. Republican Nay
Webber, Jay Republican Nay

Official roll call →

Subjects

housing
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Frequently asked questions

What does A 3877 do?
Develop housing-estab cert St funding preference, mun that enhance opportunities
Who sponsors A 3877?
A 3877 is sponsored by Mukherji, Raj, Coughlin, Craig J. (Democrat), Speight, Shanique (Democrat), Reynolds-Jackson, Verlina (Democrat), Karabinchak, Robert J. (Democrat), Stanley, Sterley S. (Democrat), Venezia, Michael (Democrat), Rowan, Maureen (Democrat), Carter, Linda S. (Democrat), Calabrese, Clinton (Democrat), Haider, Shama A. (Democrat), Sampson IV, William B. (Democrat), and Brennan, Katie (Democrat).
What is the current status of A 3877?
This bill has been introduced in the General Assembly. Introduced January 13, 2026. It must pass committee before a floor vote.
Where can I track A 3877?
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