New Jersey municipalities will now have greater authority and resources to address homelessness under a new law signed by outgoing Gov. Phil Murphy.
Sponsored by state Senate President Nick Scutari and state Sen. Troy Singleton, the measure authorizes municipalities to establish homelessness trust funds and adopt local homeless housing plans to confront the growing crisis in New Jersey and around the nation.
“Homelessness continues to increase across New Jersey, and local leaders need to be supported with the resources and ability to respond effectively,” Scutari said. “By giving municipalities the ability to invest directly in affordable housing, support services and prevention programs, we can help families and individuals before they fall into crisis, and strengthen communities in the process.”
Homelessness in the state has increased sharply in recent years. On a single night in January 2024, 12,680 individuals were counted as homeless, a nearly 24% rise from the previous year. Families with children, veterans, seniors and individuals with disabilities are among those most impacted.
“Homelessness is a daily reality for far too many New Jersey families,” Singleton noted. “This law gives municipalities the ability to plan ahead, invest wisely and respond with compassion. When local leaders have the right tools and resources, more people can find the stability, dignity and security they deserve.”
Under the law, municipalities will work in consultation with the Department of Community Affairs and local community-based organizations. A homeless housing plan is defined as a strategic roadmap with achievable objectives to end homelessness in a municipality.
“Establishing a dedicated municipal funding source would allow local governments to implement sustainable, comprehensive strategies tailored to the specific needs of their communities,” Scutari pointed out.
To fund those efforts, municipalities will be able to receive added funding from existing fines and penalties they’ve already collected, such as parking tickets and court fines. The funds would be deposited into a municipal homelessness trust fund to support the acquisition, construction, or rehabilitation of permanent affordable housing; rental assistance vouchers, including tenant and project-based subsidies; support services to help residents obtain or maintain permanent housing; and prevention services for individuals and families at risk.
While at least 15 of New Jersey’s 21 counties have already adopted county-level homelessness housing plans, rising housing costs and a limited supply of affordable homes have increasingly outpaced the reach of many emergency shelters, rental assistance and prevention programs.
