New Jersey’s Updated Uniform Housing Affordability Control Guidelines

Effective since Dec. 19, 2024, the New Jersey Housing and Mortgage Finance Agency amended the Uniform Housing Affordability Controls (UHAC) governing the distribution, size, number and affordability of income-restricted (affordable) units in residential developments. We examine the updated standards that affect the planning and construction of residential development projects across the Garden State. Additionally, per the amendments, the unit size of state-financed affordable units now applies to all affordable units.

Rental Units Are Subject to New Standards

Subsection 5:80-26.5 of the UHAC replaced the former provisions for occupancy standards and is far more detailed. For developments containing market-rate and restricted units offered for rent, the following standards apply:

  • Building materials for restricted units must be the same as those used for market-rate units of the same type within the development
  • Market-rate units and restricted units may use different interior finishes
  • Restricted units cannot be sited to be concentrated in less desirable locations. Similarly, they cannot be clustered so as to be segregated from market-rate units
  • Amenities provided to market-rate units must also be provided to restricted units. For example, if the development offers access to a pool to market-rate units, it must also provide pool access to restricted units
  • If heating and cooling systems are provided in market-rate units, then the same systems must be provided in restricted units
  • Each bedroom in a restricted unit must have at least one window
  • If restricted units and market-rate units are located in the same building, then they must be of the same type. For example, if two of four connected townhomes are market-rate units, then the remaining two must be restricted units
  • Restricted units must be at least the same size as the most common market-rate units of the same type and bedroom count in the development, and they cannot be less than 90% of the greater minimum size as prescribed by either the applicable municipal code or the Neighborhood Preservation Balanced Housing Act rules, N.J.A.C. 5:43-2.4 et seq

These individual requirements may be waived or altered with written approval of the Division of Local Planning Services of the New Jersey Department of Community Affairs depending on whether the waiver or alteration results in a “material deviation” from the municipal housing element or fair share plan. If there would be no material deviation, then the Division of Local Planning Services may grant written approval. If the deviation would be material, then relief must be obtained by the Dispute Resolution Program of the New Jersey Department of Community Affairs — if the municipality participates in the Program — or the relevant county-level housing judge.

Market-Rate Units and Restricted Units Must Be Constructed in Specific Phases

The amended UHAC rules now require specific thresholds of restricted units to be completed before more market-rate units can be constructed. The chart below illustrates the requirements under UHAC.

Market-Rate Units (MRU) Restricted Units
(RU)
 
No more than10% of total MRUscan be completed before1 RUis/are completed
25% of MRUs10% of total RUs
50% of MRUs50% of RUs
75% of MRUs75% of RUs
90% of MRUs100% of RUs

Bedroom Occupancy Guidelines Have Increased the Number of Individuals Per Bedroom

Section 5:80-26.5(c) of the UHAC provides new guidelines to the administrative agent for determining the number of occupants per bedroom. Each bedroom must be occupied by at least one person, and the agency should avoid placing a one-person household into a unit with more than one bedroom. At least one bedroom must be provided for every two adult occupants. At least one bedroom for every occupant under 18 years of age should be provided unless the specific household requires a different arrangement, in which case no more than two occupants under 18 may occupy a bedroom. The amended rules do not provide guidance as to what the agency should consider when determining if “different arrangement[s]” are required.

For any questions about the updated UHAC guidelines, please contact Kevin Moore at 609.243.6420, or the Stevens & Lee attorney with whom you regularly work.

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