Bill to boost housing density with extra state aid to towns clears Assembly committee
February 11, 2025
State lawmakers are hoping to create new housing in New Jersey with an incentive-based approach, unveiling a bill that would boost aid to municipalities that update their zoning to allow for higher-density residential development.
The bill, A4913, would offer what Assembly Democrats described as a wide set of parameters for towns and cities to address the shortage of available homes in their communities. Under the proposal, local planning boards could consider changes such as allowing accessory dwelling units, permitting two- and three-family homes in single-family zones, reducing parking and lot size requirements and allowing development of a multi-unit dwelling or a mixed-use development on lots zoned exclusively for office, retail or commercial uses.
Assembly Speaker Craig J. Coughlin and Assemblywoman Shanique Speight are sponsoring the legislation, which advanced in the chamber’s housing committee on Monday by a 7-0 vote.
“This bill strikes a critical balance, expanding housing opportunities while ensuring towns have the resources to support that growth,” said Coughlin, who is based in Middlesex County. “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.”
According to a news release, those municipalities that make zoning updates to allow for more housing would receive funding priority from the Department of Community Affairs. That could come in many forms, Assembly Democrats said, including additional options such as allowing manufactured homes, mixed-use developments, and higher-density housing near transit stops.
The bill would also call for DCA to provide model ordinance templates to help municipalities incorporate those housing strategies into their local zoning codes. Notably, the program would be voluntary, allowing governing bodies to decide what strategies work best for their communities.
“In the past, increasing housing density often meant straining schools, infrastructure and local services,” said Speight, whose district includes Essex and Hudson counties. “This legislation would change that by giving municipalities the resources they need to expand housing — ensuring the necessary investments follow. 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.”
A4913 would also affect the allocation of funding from the Department of Transportation and the Department of Education, the news release said. Municipalities that add housing would receive priority for transportation grants, while school districts in participating municipalities can raise their state aid percentage for school construction projects from 40 percent to 50 percent.
According to the lawmakers, the incentives provided through the 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, they said, encouraging smart growth and middle-density housing without removing any zoning powers from local governments.
NJ Realtors® Denounces New Tax Hike on Home Sales
On February 25, 2025 Governor Murphy’s budget proposal for 2026 included an increase on certain transfers of real property over $1M, currently the fee for residential and commercial sales exceeding $1M is 1%, this increase would rise to 2% for properties sold between $1M and $2M and to 3% for sales over $2M.
The Liberty Board of Realtors is concerned that this increase will further impact the challenges that the NJ real estate market is experiencing. The proposal could affect property values and reduce transactional volume.
NJRealtors released the following statement and the Liberty Board will stand with NJRealtors to work to find a solution to protect the housing market in NJ.
Christopher Cervelli, Liberty Board of REALTORS President
Trenton, N.J. (Feb. 25, 2025) — Today, in the FY 2026 budget, Gov. Murphy announced a proposed increase on the Assessment on Real Property Greater than $1 Million, which is the highest tier of the Realty Transfer Fee, which New Jersey Realtors strongly condemns.
This assessment would increase from its current one percent rate to two percent for certain real property purchases between $1 million and $2 million, and would increase to three percent for certain real property purchases in excess of $2 million. This would apply to both residential and commercial sales.
While a $1 million home has traditionally been considered a luxury property, the reality is that inflation and the dramatic rise in home prices have placed that price tier firmly in the middle class for many parts of New Jersey. New Jersey is a high-cost state and affordability has become a significant concern considering the average sales price for single-family home rose to $698,804 in 2024. Comparatively, that number was $309,000 in 2014.
“Beyond being an unreliable source of government funding, this tax only creates further roadblocks towards the goal of affordability in New Jersey,” said NJ Realtors CEO Doug Tomson. “We should be incentivizing people of all price brackets to sell to mitigate the inventory crisis we have on residential homes. Rather than imposing an additional fee on an evolving post-Covid commercial market, we should be encouraging the transformation of these properties to drive economic growth.”
Inventory in New Jersey has been below average for the past decade, with just 12,042 single-family homes for sale in December of last year, when in December of 2014 there were 41,165 single-family homes for sale on the market.
New Jersey Realtors® looks forward to working with the State Legislature and the Governor on finding a common-sense solution to protect and incentivize New Jersey’s housing market.
Mixed-Use Development Could Rise near Glen Rock’s Train Station
Glen Rock, Bergen County, could see the construction of a new mixed-use complex near one of its two commuter rail stations.
A firm called Glen Rock Mall, LLC is proposing three buildings with a total of 69 residential units and 11,118 square feet of commercial space at 175 Rock Road, according to a public notice
The premises at 175 Rock Road consist of several tracts located a stone’s throw away from Glen Rock’s stop along New Jersey Transit’s Main Line and the rock that gave the community its name. The properties contain plenty of parking along with two small strip malls.
Glen Rock Mall, LLC is planning to “demolish approximately 34,725 sq. ft. of the existing commercial structure(s) at the rear of the site and approximately 1,957 sq. ft. comprising a residence plus a detached garage” in order to proceed with the project, the notice says.
Few additional details regarding the plans have been released yet.
Glen Rock is unique among New Jersey suburbs in that it has two train stations on separate rail lines within a short walk of each other, with the borough’s downtown in between.
Two Glen Rock Planning Board meetings regarding the proposal are scheduled to take place this week. An agenda shows that a work session regarding the application is scheduled for today, Monday, November 1, at 7:30 p.m., while a formal hearing is set to take place on Wednesday, November 3, at 7:30 p.m. Both meetings will be held at the Glen Rock Municipal Building.
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Lennar plans fall launch for four new developments with more than 500 homes combined
Lennar is set to debut four new developments in New Jersey, with offerings that will include everything from townhomes in Morris County to single-family dwellings in South Jersey.
The company announced last week that it will roll out the communities in the coming months. Among them is The Grove in Whippany section of Hanover, which will have 60 two- and three-story townhomes near Route 10 and within walking distance of shopping and entertainment.
Elsewhere in northern New Jersey, Lennar will unveil 190 townhomes in Oakland known as The Ridings at Oakland. Its new developments will also include 111 luxury single-family homes known as The Signature Collection at Hopewell Parc, which will open within a larger community.
In the Gloucester County borough of Emerson, located 20 minutes outside Philadelphia, the homebuilder will soon debut 63 value-positioned single-family homes and 95 townhomes known as Emerson Square.
“Lennar is known for its innovative approach to home construction and community development. As such, we are excited to introduce a range of new homesites that cater to the diverse needs of New Jersey homeowners,” said Anthony Mignone, regional vice president for Lennar. “By leveraging our national experience and resources, we aim to create lasting value for homeowners alike across the state, while continuing to uphold Lennar’s legacy of building homes that stand the test of time.”
The publicly traded homebuilder noted that all four properties are meant to provide homeowners easy access to main roads and highways, top-rated school districts, shopping and entertainment options and major destinations such as New York City, Philadelphia or the Jersey Shore. It’s also focused on sustainability, health and wellbeing with features such as on-site parks, expansive green spaces, clubhouses and pickleball and volleyball courts.
Lennar said the Sept. 17 announcement of expansion follows two other recent community openings in New Jersey, The Collection at Hopewell and Monroe Park Terraces.