"Closing the Segregated Housing Loophole Act"; prohibits segregation in affordable housing inclusionary developments.

This bill prohibits segregation in new inclusionary housing developments that mix market-rate and affordable units. It bans developers from creating separate entrances, amenities, or features that segregate residents based on income status or protected characteristics like race or religion. Municipalities cannot approve such segregated developments, and units in violating projects won’t count toward a municipality’s affordable housing quota. The bill establishes a complaint process for residents to report violations to the Department of Community Affairs, which can order corrections and impose penalties on noncompliant municipalities. It is pending before the New Jersey Assembly Housing Committee.