Housing (Zoning)

S 362 clarifies that counties and municipalities directly renting residential units to tenants are excluded from the "Fair Chance in Housing Act." This bill amends the law’s definition of "housing provider" to specifically exclude county and municipal governments that rent housing directly. As a result, these government landlords would no longer be subject to the Act’s requirements regarding criminal record inquiries during rental applications. The bill resolves ongoing disputes about whether the Act applies to public housing providers, leaving the law unchanged for private landlords and housing providers.

This bill, S 2889 ("The Desegregate New Jersey Act"), requires New Jersey municipalities to permit accessory dwelling units (ADUs) - secondary living spaces on single-family lots - and mixed-use developments (combining residential and commercial spaces) in areas currently zoned only for single-family homes. It directly affects municipalities (by changing zoning rules) and homeowners (by allowing ADUs without triggering affordable housing quotas). Key provisions ban restrictions like mandatory passageways between units, parking fees for ADUs, or age requirements for occupants, and set a 65-day deadline for permit decisions. Municipalities failing to update zoning by June 2022 must follow these rules until compliance, removing barriers to denser, more diverse housing options.

S 1946 allows New Jersey municipalities to create programs giving priority for affordable housing units to low- and moderate-income veterans who served in wartime or emergencies (up to 50% of affordable units in a project). It amends state housing law to let municipalities use tools like rezoning, tax abatements, or public land to build affordable housing while requiring units to remain affordable for at least six years. The bill specifically adds a veteran preference mechanism into housing selection processes but does not require municipalities to raise taxes or spend public funds for this purpose. This directly affects municipalities developing housing projects and low-to-moderate-income veterans seeking housing in New Jersey.

This bill requires New Jersey municipalities to permit accessory dwelling units (ADUs) in single-family and two-family residential zones as a standard use, eliminating the need for special approvals beyond standard zoning. It sets specific size limits (minimum 300 sq ft, maximum 1,200 sq ft), height restrictions (max 20 feet), and setback rules (no more than five feet for detached ADUs). The bill also mandates that ADUs must be rented separately from the primary dwelling but cannot be sold separately, and exempts them from fire sprinkler requirements if the primary dwelling does not require them. These provisions directly affect homeowners seeking to build ADUs and municipalities required to update zoning regulations.