A 3877

[First Reprint]
ASSEMBLY, No. 3877
STATE OF NEW JERSEY
222nd LEGISLATURE
�
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Assemblyman CRAIG J. COUGHLIN
District 19 (Middlesex)
Assemblywoman SHANIQUE SPEIGHT
District 29 (Essex and Hudson)
Assemblywoman VERLINA REYNOLDS-JACKSON
District 15 (Hunterdon and Mercer)
Senator� RAJ MUKHERJI
District 32 (Hudson)
Co-Sponsored by:
Assemblymen Karabinchak, Stanley, Venezia, Assemblywomen
Rowan, Carter, Assemblyman Calabrese, Assemblywoman Haider, Assemblyman Sampson
and Assemblywoman Brennan
SYNOPSIS
���� Establishes certain State funding preferences for
municipalities that enhance opportunities to develop housing.
CURRENT VERSION OF TEXT
���� As reported by the Senate Budget and Appropriations
Committee on June 28, 2026, with amendments.
��
An Act establishing certain State funding preferences for
municipalities that adopt certain strategies to encourage denser residential
development, supplementing Titles 40, 52, and 27 of the Revised Statutes and
amending P.L.2000, c.72.
���� Be It
Enacted by the Senate and General Assembly of
the State of New Jersey:
����� 1.�� (New
section)� a.� The governing body of a municipality may direct the planning
board to undertake and provide for a special reexamination of the
municipality�s master plan and development regulations for the purpose of
enabling the municipality to qualify for preferential status in the
distribution of financial assistance competitively awarded by the State in
accordance with the provisions of P.L.��� , c.��� (C.������ ) (pending before
the Legislature as this bill).
����� b.�� (1)�
A planning board directed to undertake and provide for a special reexamination
of the municipality�s master plan and development regulations pursuant to
subsection a. of this section shall, at a minimum, review the provisions of the
municipality�s existing master plan and development regulations that address
areas of the municipality within which residential development is permitted,
and may consider recommending specific changes to the master plan and
development regulations for the purpose of enhancing the potential development
of the municipality for residential purposes.
����� (2) A
planning board directed to undertake and provide a special reexamination of the
municipality�s master plan and development regulations pursuant to subsection
a. of this section, prior to reporting recommendations for changes thereto
pursuant to subsection c. of this section, may consider whether to include in
the master plan and development regulations one or more housing strategies that
may enhance the development potential of property for residential purposes at
greater densities, including but not limited to the following housing
strategies:
����� (a) permit
development of an accessory dwelling unit in addition to a single-unit dwelling
on developable lots in areas restricted to the development of single-unit
dwellings;
����� (b) permit
development of a two-unit dwelling on lots in areas restricted to the
development of single-unit dwellings;
����� (c) permit
development of a three-unit dwelling on lots in areas restricted to the
development of single-unit dwellings;
����� (d) eliminate
or reduce off-street parking requirements;
����� (e) eliminate
or reduce minimum lot size requirements;
����� (f)� permit
the siting of manufactured housing or a mobile home on lots in areas restricted
to the development of single-unit dwellings;
����� (g) permit
development of a multi-unit dwelling or a mixed-use development on lots zoned
exclusively for office, retail, or commercial uses;
����� (h) permit
development of a multi-unit dwelling on at least 10 percent of the developable
land within the municipality;
����� (i)� permit
higher density housing near transit stops; and
����� (j)� eliminate
or reduce minimum size requirements for dwelling units.
����� c.�� (1)�
A planning board directed to undertake and provide for a special reexamination
of the municipality�s master plan and development regulations pursuant to
subsection a. of this section shall prepare and adopt by resolution a report on
the findings of the special reexamination, a copy of which report and
resolution shall be sent to the Division of
Local Planning Services in the Department of Community Affairs, the Office of Planning Advocacy, and the county
planning board.� A notice that the report and resolution have been prepared
shall be sent to any military facility commander who has registered with the
municipality pursuant to section 1 of P.L.2005, c.41 (C.40:55D-12.4) and to the
municipal clerk of each adjoining municipality, who may request a copy of the
report and resolution on behalf of the military facility or municipality.
����� (2) If
a special reexamination report recommends changes to a municipality�s existing
master plan, the planning board shall forward
its recommendations to the governing body.� The governing body shall, by
resolution, accept, reject, or modify the recommendations of the planning board
and direct the planning board to
commence the process of amending the master plan accordingly, and in accordance
with the requirements for amendment of a master plan under P.L.1975, c.291
(C.40:55D-1 et seq.), which include holding a hearing upon public notice.
����� (3) If
a planning board amends a master plan pursuant to this subsection, the
governing body of the municipality may commence the process of amending the
municipality�s zoning ordinance under P.L.1975, c.291 (C.40:55D-1 et seq.) for
the purpose of making it substantially consistent with the land use plan
element and the housing plan element of the municipality�s master plan.
����� (4) Within
45 business days following the date of adoption of any revisions to the
municipality�s zoning or other land development ordinances pursuant to
paragraph (3) of this subsection, the clerk of the municipality shall transmit
copies of the ordinances to the Division of Local Planning Services in the
Department of Community Affairs.
����� d.�� If
a municipality has already adopted ordinances substantially similar to the
provisions of this section, the municipality shall transmit copies of the
ordinances to the Division of Local Planning Services in the Department of
Community Affairs for evaluation in preferential status determinations to be
made in accordance with the provisions of P.L.��� , c.��� (C.������� ) (pending
before the Legislatures as this bill).
���� 2.��� (New section)
a.  As used in this section:
���� "Department" means
the Department of Community Affairs.
���� "Grant or other type of
competitively-awarded financial assistance" means all types of
competitively-awarded financial assistance that the department or another State
agency may distribute to one or more municipalities pursuant to a program administered
by the department or other State agency that is solely funded by State
funds, other than a program:
���� (1)� that awards funds to help
a municipality fulfill its fair share housing obligation pursuant to P.L.1985,
c.222 (C.52:27D-301 et al.);
���� (2)� administered by the
department and that awards funds to municipalities in support of shared
services and consolidation;
���� (3)� where multiple
municipalities may join a single application for competitively-awarded
financial assistance; or
���� (4)� where other entities in
addition to municipalities may apply for competitively-awarded financial
assistance.
���� "Grant or other type of
competitively-awarded financial assistance" shall include, but shall not
be limited to, the Neighborhood Preservation Program established pursuant to
P.L.1975, c.248 (C.52:27D-142 et seq.).
���� "State agency" means
any department, division, office, board, commission, council, or bureau in the
Executive branch of State government.
���� b.��� (1)
Notwithstanding any provision of law, rule, or regulation to the contrary, when
determining the eligibility of a municipality to receive a grant or other type
of competitively-awarded financial assistance, the department shall establish a
preference for those municipalities that have amended their development
regulations pursuant to section 1 of P.L.    ,
c.    (C.        ) (pending
before the Legislature as this bill) to allow for the use of additional housing
strategies and have 1[thereby] reasonably1 increased
the 1[number] rate1 of
housing units permitted for development within the municipality.� Funds awarded
under the Transitional Aid to Localities program or any successor discretionary
aid program pursuant to P.L.2011, c.144 (C.52:27D-118.42a), as Consolidated
Municipal Property Tax Relief Aid, or as Energy Tax Receipts Property Tax
Relief Aid shall not be considered a type of competitively-awarded financial
assistance under the provisions of P.L.    ,
c.    (C.        ) (pending
before the Legislature as this bill).
���� (2)� Notwithstanding any
provision of law, rule, or regulation to the contrary, the department shall
publish on the department�s Internet website a list of municipalities that have
amended their development regulations pursuant to section 1 of P.L.
, c.    (C.        ) (pending
before the Legislature as this bill) to allow for the use of additional housing
strategies and 1[that]1
have 1reasonably1
increased the 1[number] rate1 of
housing units permitted for development in the municipality.  The
department shall, in a manner determined by the department, order the
municipalities within three tier categories based on the impact of, and the
amount of changes made, relative to the municipalities� planning areas.
The department shall update this list on a quarterly basis.  Each State
agency that awards a grant or other type of competitively-awarded financial
assistance to a municipality shall utilize this list to establish an award
preference for those municipalities that have amended their development
regulations pursuant to section 1 of P.L.    ,
c.    (C.        ) (pending
before the Legislature as this bill) to allow for the use of additional housing
strategies and have 1reasonably1
increased the 1[number] rate1 of
housing units permitted for development within the municipality.
���� c.��� The Department of
Community Affairs, pursuant to the "Administrative Procedure Act,"
P.L.1968, c.410 (C.52:14B-1 et seq.), shall adopt rules and regulations it
deems necessary or desirable to effectuate sections 1 and 2 of P.L.
, c.    (C.  and
C.        ) (pending before the Legislature
as this bill), which rules and regulations shall:
���� (1)� specify the types and
number of housing strategies appropriate for use by a municipality based upon
the municipality�s planning region, as identified within the most recently
adopted State Development and Redevelopment Plan;
���� (2)� specify a range of values
to be accorded to municipalities determined to be eligible for a preference in
financial assistance competitively awarded by the State pursuant to
P.L.    , c.    (C.
) (pending before the Legislature as this bill), based upon the number of
additional housing units permitted for development and the types of housing
strategies adopted pursuant to P.L.    , c.
(C.        ) (pending before the Legislature
as this bill); and
���� (3)� provide a housing siting
and best practices guide for the purpose of assisting municipalities opting to
incorporate one or more of the housing strategies identified in
P.L.    , c.
(C.        ) (pending before the Legislature
as this bill) into their ordinances.
���� 3.��� (New section)� The
Commissioner of Transportation, in determining the allocation of funds for
municipal projects from the "Transportation Trust Fund Account,"
established by section 20 of P.L.1984, c.73 (C.27:1B-20), shall establish a
criterion to provide, at the commissioner�s discretion, 1[within the
schedule of all other criteria for prioritization, as provided in section 25 of
P.L.1984, c.73 (C.27:1B-25)]
and in conformance with the criteria established by the Department of
Community Affairs pursuant to section 2 of P.L.��� , c.��� (C.������� )
(pending before the Legislature as this bill1 , a preference for those
municipalities that have amended their master plan and development regulations
pursuant to section 1 of P.L.��� , c.��� (C.�������� ) (pending before the
Legislature as this bill) to allow for the use of additional housing strategies
and have 1[thereby] reasonably1
increased the 1[number] rate1 of housing
units permitted for development within the municipality.
���� 1[4.� Section 9
of P.L.2000, c.72 (C.18A:7G-9) is amended to read as follows:
���� 9.� a.� State debt service aid
for capital investment in school facilities for a district other than an SDA
district which elects not to finance the project under section 15 of P.L.2000,
c.72 (C.18A:7G-15), shall be distributed upon a determination of preliminary
eligible costs by the commissioner, according to the following formula:
���� Aid is the sum of A for each
issuance of school bonds issued for a school facilities project approved by the
commissioner after the effective date of P.L.2000, c.72 (C.18A:7G-1 et al.)
where
���� A = B x AC/P x�� DAP x M, with
AC/P =1
whenever AC/P would otherwise yield
a number greater than one, and where:
���� B is the district's debt
service for the individual issuance for the fiscal year;
���� AC is the preliminary eligible
costs determined pursuant to section 7 of P.L.2000, c.72 (C.18A:7G-7);
���� P is the principal of the
individual issuance plus any other funding sources approved for the school
facilities project;
���� DAP is the district's district
aid percentage as defined pursuant to section 3 of P.L.2000, c.72 (C.18A:7G-3)
and where DAP shall not be less than 40 percent. If the project's design
incorporates the implementation of energy efficiency improvements or the
installation of energy efficient features or equipment, the DAP shall be
increased by no more than five percent.� In order to qualify for a DAP increase
for the implementation of energy efficiency improvements or the installation of
energy efficient features or equipment pursuant to this subsection, a district
shall submit to the development authority and Department of Education a
certification, along with evidential documentation, attesting that the
project's design incorporates the implementation of energy efficiency
improvements or the installation of energy efficient features or equipment.�
���� In addition, DAP for a
school facilities project that is approved by the commissioner following the
effective date of P.L.    , c.     (C.        ) (pending
before the Legislature as this bill) may be increased by no more than 10
percent if the school district submitting the school facilities project is
located in a municipality which has amended its master plan and development
regulations pursuant section 1 of P.L.��� , c.��� (C. ������) (pending before
the Legislature as this bill) to allow for the use of additional housing
strategies, and has thereby increased the number of housing units permitted for
development within the municipality.� A regional school district may be
eligible for a DAP increase if one or more constituent municipalities of the
regional school district have each amended its master plan and development
regulations pursuant to section 1 of P.L.��� , c.��� (C. ������) (pending
before the Legislature as this bill) to allow for the use of additional housing
strategies and have thereby increased the number of housing units permitted for
development within the municipality, provided that the DAP increase shall be no
more than 10 percent and that the maximum DAP increase due to any one
constituent municipality�s amendment of its master plan and development
regulations pursuant to section 1 of P.L.��� , c.��� (C.������ ) (pending
before the Legislature as this bill) is calculated in proportion to the
constituent municipality�s share of the overall resident enrollment of the
regional school district.� The Commissioner of Education and the Commissioner
of Community Affairs shall develop a uniform methodology to determine a school
district�s eligibility for a DAP increase based upon the number of additional
housing units permitted for development and the types of housing strategies
adopted pursuant to P.L.��� , c.��� (C. �������) (pending before the
Legislature as this bill).� In order to qualify for a DAP increase under this
paragraph, a school district shall submit documentation verifying that the
appropriate municipalities have adopted the requisite changes to their master
plans and development regulations; and
���� M is a factor representing the
degree to which a district has fulfilled maintenance requirements for a school
facilities project determined pursuant to subsection b. of this section.
���� For county special services
school districts, DAP shall be that of the county vocational school district in
the same county.
���� Notwithstanding the provisions
of this subsection to the contrary, DAP for a county vocational school district
school facilities project that is approved by the commissioner following the
effective date of P.L.2009, c.185 shall equal the greater of the district's
district aid percentage as defined pursuant to section 3 of P.L.2000, c.72
(C.18A:7G-3) or the percentage of the students in the county vocational school
district's resident enrollment who reside in SDA districts; except that DAP
shall not be less than 40 percent or greater than 90 percent.
���� b.��� The maintenance factor
(M) shall be 1.0 except when one of the following conditions applies, in which
case the maintenance factor shall be as specified:
���� (1)� Effective ten years from
the date of the enactment of P.L.2000, c.72 (C.18A:7G-1 et al.), the
maintenance factor for aid for reconstruction, remodeling, alteration,
modernization, renovation or repair, or for an addition to a school facility,
shall be zero for all school facilities projects for which the district fails
to demonstrate over the ten years preceding issuance a net investment in
maintenance of the related school facility of at least two percent of the
replacement cost of the school facility, determined pursuant to subsection b.
of section 7 of P.L.2000, c.72 (C.18A:7G-7) using the area cost allowance of
the year ten years preceding the year in which the school bonds are issued.
���� (2)� For new construction,
additions, and school facilities aided under subsection b. of section 7 of
P.L.2000, c.72 (C.18A:7G-7) supported by financing issued for projects approved
by the commissioner after the effective date of P.L.2000, c.72 (C.18A:7G-1 et
al.), beginning in the fourth year after occupancy of the school facility, the
maintenance factor shall be reduced according to the following schedule for all
school facilities projects for which the district fails to demonstrate in the
prior fiscal year an investment in maintenance of the related school facility
of at least two-tenths of one percent of the replacement cost of the school
facility, determined pursuant to subsection b. of section 7 of P.L.2000, c.72
(C.18A:7G-7).
���� Maintenance Percentage�������������� Maintenance
Factor (M)
���� .199% - .151%������������������������������ 75%
���� .150% - .100%������������������������������ 50%
���� Less than .100%��������������������������� Zero
���� (3)� Within one year of the
enactment of P.L.2000, c.72 (C.18A:7G-1 et al.), the commissioner shall
promulgate rules requiring districts to develop a long-range maintenance plan
and specifying the expenditures that qualify as an appropriate investment in
maintenance for the purposes of this subsection.
���� c.��� Any district which
obtained approval from the commissioner since September 1, 1998 and prior to
the effective date of P.L.2000, c.72 (C.18A:7G-1 et al.) of the educational
specifications for a school facilities project or obtained approval from the
Department of Community Affairs or the appropriately licensed municipal code
official since September 1, 1998 of the final construction plans and
specifications, and the district has issued debt, may elect to have the final
eligible costs of the project determined pursuant to section 5 of P.L.2000,
c.72 (C.18A:7G-5) and to receive debt service aid under this section or under
section 10 of P.L.2000, c.72 (C.18A:7G-10).
���� Any district which received
approval from the commissioner for a school facilities project at any time
prior to the effective date of P.L.2000, c.72 (C.18A:7G-1 et al.), and has not
issued debt, other than short term notes, may submit an application pursuant to
section 5 of P.L.2000, c.72 (C.18A:7G-5) to have the final eligible costs of
the project determined pursuant to that section and to have the New Jersey
Economic Development Authority construct the project; or, at its discretion,
the district may choose to receive debt service aid under this section or under
section 10 of P.L.2000, c.72 (C.18A:7G-10) or to receive a grant under section
15 of P.L.2000, c.72 (C.18A:7G-15).
���� For the purposes of this
subsection, the "issuance of debt" shall include lease purchase
agreements in excess of five years.
���� d.��� For school bonds issued
for a school facilities project after the effective date of P.L.2000, c.72
(C.18A:7G-1 et al.) and prior to the effective date of P.L.2008, c.39
(C.18A:7G-14.1 et al.), State debt service aid shall be calculated in
accordance with the provisions of this section as the same read before the
effective date of P.L.2008, c.39 (C.18A:7G-14.1 et al.).
(cf: P.L.2023, c.311, s.6)]1
���� 14.�� Section
13 of P.L.2000, c.72 (C.18A:7G-13) is amended to read as follows:
���� 13.� a.� The financing
authority shall be responsible for the issuance of bonds pursuant to section 14
of P.L.2000, c.72 (C.18A:7G-14) and the development authority shall be
responsible for the planning, design, construction management, acquisition,
construction, and completion of school facilities projects.� In the case of a
capital maintenance project, the development authority may, in its discretion,
authorize an SDA district to undertake the design, acquisition, construction
and all other appropriate actions necessary to complete the capital maintenance
project and shall enter into a grant agreement with the district for the
payment of the State share.� Until the expiration date established pursuant
to subsection b. of section 6 of P.L.��� , c.��� (C.������� ) (pending before
the Legislature as this bill), the State share may be increased by no more than
10 percent and may not exceed the total cost of the project in a municipality
that has amended its master plan and development regulations pursuant to section
1 of P.L.��� , c.��� (C.        ) (pending
before the Legislature as this bill) to allow for the use of additional housing
strategies and have reasonably increased the rate of housing units permitted
for development within the municipality.� This additional funding, until the
expiration date established pursuant to subsection b. of section 6 of
P.L.    , c.     (C.        ) (pending
before the Legislature as this bill), is subject to the availability of new
funding made available through State or federal appropriations or funds derived
from school construction bonds approved by voters following the effective date
of P.L.��� , c.��� (C.������� ) (pending before the Legislature as this bill).
The development authority may also authorize an SDA district to undertake the
design, acquisition, construction and all other appropriate actions necessary
to complete any other school facilities project in accordance with the
procedures established pursuant to subsection e. of this section.
���� b.��� The financing authority
shall undertake the financing of school facilities projects pursuant to the
provisions of this act.� The financing authority shall finance the State share
of a school facilities project and may, in its discretion and upon consultation
with the district, finance the local share of the project. In the event that
the financing authority finances only the State share of a project, the
development authority shall not commence acquisition or construction of the
project until the development authority receives the local share from the
district.
���� c.��� In order to implement
the arrangements established for school facilities projects which are to be
constructed by the development authority and financed pursuant to this section,
a district shall enter into an agreement with the development authority and the
commissioner containing the terms and conditions determined by the parties to
be necessary to effectuate the project.
���� d.��� Upon completion by the
development authority of a school facilities project, the district shall enter
into an agreement with the development authority to provide for the maintenance
of the project by the district.� In the event that the school facilities
project is constructed by a district, upon the completion of the project, the
district shall submit to the commissioner a plan to provide for the maintenance
of the project by the district.� Any agreement or plan shall contain, in
addition to any other terms and provisions, a requirement for the establishment
of a maintenance reserve fund consistent with the appropriation and withdrawal
requirements for capital reserve accounts established pursuant to section 57 of
P.L.2000, c.72 (C.18A:7G-31), the funding levels of which shall be as set forth
in regulations adopted by the commissioner pursuant to section 26 of P.L.2000,
c.72 (C.18A:7G-26).
���� e. (1) Within one year of the
effective date of P.L.2007, c.137 (C.52:18A-235 et al.), the commissioner, in
consultation with the development authority, shall adopt pursuant to the
"Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.),
rules and regulations by which the commissioner shall determine whether an SDA
district is eligible to be considered by the development authority to manage a
school facilities project or projects.� In making the determination, the
commissioner shall consider the district's fiscal integrity and operations, the
district's performance in each of the five key components of school district
effectiveness under the New Jersey Quality Single Accountability Continuum
(NJQSAC) in accordance with section 10 of P.L.1975, c.212 (C.18A:7A-10), and
other relevant factors.
���� (2)� Within one year of the
effective date of P.L.2007, c.137 (C.52:18A-235 et al.), the development
authority, in consultation with the commissioner, shall adopt pursuant to the
"Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.),
rules and regulations by which the development authority shall determine the
capacity of an SDA district, deemed eligible by the commissioner pursuant to
paragraph (1) of this subsection, to manage a school facilities project or
projects identified by the development authority.� In making the determination,
the development authority shall consider the experience of the SDA district,
the size, complexity, and cost of the project, time constraints, and other
relevant factors.
���� (3)� The development
authority, in consultation with the commissioner, shall develop and implement
training programs, seminars, or symposia to provide technical assistance to SDA
districts deemed to lack the capacity to manage a school facility project or
projects; except that nothing herein shall be construed to require the
development authority or the commissioner to authorize an SDA district to hire
additional staff in order to achieve capacity.
���� (4)� If the development
authority determines to delegate a school facilities project to an SDA district
in accordance with paragraph (2) of this subsection, the development authority,
the commissioner, and the district shall enter into a grant agreement. The grant
agreement shall, at a minimum, establish a timeline for the completion of the
school facilities project, which timeline shall be established based on the
scope of the work to be performed.
���� (5) If the development
authority determines to delegate a school facilities project to an SDA district
in accordance with paragraph (2) of this subsection, the SDA district shall be
deemed to be in noncompliance with the grant agreement entered into pursuant to
paragraph (4) of this subsection if the district enters into a contract with a
contractor, subcontractor, or consultant which is debarred, suspended, or
disqualified from State, development authority, or federal government
contracting at the time of the contract award or with a firm which has not been
prequalified by the development authority. If the district enters into a
contract with a debarred, suspended, or disqualified contractor, subcontractor,
or consultant, then the grant agreement shall be rendered null and void.1
(cf: P.L.2023, c.311, s.8)
���� 5.��� Section 15 of P.L.2000,
c.72 (C.18A:7G-15) is amended to read as follows:
���� 15.� a.  In the case of a
district other than an SDA district, for any project approved by the
commissioner after the effective date of P.L.2000, c.72 (C.18A:7G-1 et al.),
the district may elect to receive a one-time grant for the State share of the
project in accordance with the provisions of subsection b. of this section
rather than annual debt service aid under section 9 of P.L.2000, c.72
(C.18A:7G-9).  The State share payable to the district shall equal the
product of the project's final eligible costs and the district aid percentage
or 40 percent, whichever is greater.  If the project's design incorporates
the implementation of energy efficiency improvements or the installation of
energy efficient features or equipment, the district aid percentage shall be
increased by no more than five percent.  In order to qualify for a
district aid percentage increase for the implementation of energy efficiency
improvements or the installation of energy efficient features or equipment
pursuant to this subsection, a district shall submit to the development
authority and Department of Education a certification, along with evidential
documentation, attesting that the project's design incorporates the
implementation of energy efficiency improvements or the installation of energy
efficient features or equipment.  In addition, 1until
the expiration date established pursuant to subsection b. of section 6 of
P.L.��� , c.��� (C.������� ) (pending before the Legislature as this bill),1 the
district aid percentage for a school facilities project that is approved by the
commissioner following the effective date of P.L.    ,
c.    (C.        ) (pending
before the Legislature as this bill) 1and
located in a municipality that has amended its master plan and development
regulations pursuant to section 1 of P.L.��� , c.��� (C.������� ) (pending
before the Legislature as this bill) to allow for the use of additional housing
strategies and have reasonably increased the rate of housing units permitted
for development within the municipality1 may be increased by no
more than 10 percent 1[if the
school district submitting the school facilities project is located in a
municipality which has amended its master plan and development regulations
pursuant to section 1 of P.L.    , c.
(C.        ) (pending before the Legislature
as this bill) to allow for the use of additional housing strategies and have
thereby reasonably increased the number rate of housing units permitted
for development within the municipality]
such that the district aid percentage shall not be less than 44 percent
subject to the availability of new funding made available through State or
federal appropriations or funds derived from school construction bonds approved
by voters following the effective date of P.L.��� , c.��� (C.        )
(pending before the Legislature as this bill)1 .� A
regional school district may be eligible for a district aid percentage increase
if one or more constituent municipalities of the regional school district has
amended its master plan and development regulations pursuant to section 1 of
P.L.    , c.    (C.
    ) (pending before the Legislature as this bill) to
allow for the use of additional housing strategies and have 1[thereby] reasonably1 increased
the 1[number] rate1 of
housing units permitted for development in the municipality, provided that the
district aid percentage increase shall be no more than 10 percent and that the
maximum district aid percentage increase due to any one constituent
municipality�s amendment of its master plan and development regulations is
calculated in proportion to the constituent municipality�s share of the overall
resident enrollment of the regional school district.  The Commissioner of
Education and the Commissioner of Community Affairs shall develop a uniform
methodology to determine the district aid percentage increase based upon the
number of additional housing units permitted for development and the types of
housing strategies adopted pursuant to P.L.    , c.
 (C.        ) (pending before the
Legislature as this bill).  In order to qualify for a district aid
percentage increase pursuant to this subsection, a school district shall submit
documentation verifying that the appropriate municipalities have adopted the
requisite changes to their master plans and development regulations.
���� b.��� The commissioner shall
establish a process for the annual allocation of grant funding.  Under
that process, the commissioner shall annually notify districts of the date on
which the commissioner shall begin to receive applications for grant funding.
A district shall have 90 days from that date to submit an application to the
commissioner.  The commissioner shall make a decision on a district's
application within 90 days of the submission of all such applications and shall
allocate the grant funding in accordance with the priority process established
pursuant to paragraph (4) of subsection m. of section 5 of P.L.2000, c.72
(C.18A:7G-5).
���� c.��� The development
authority shall provide grant funding for the State's share of the final
eligible costs of a school facilities project pursuant to an agreement between
the district and the development authority which shall, in addition to other
terms and conditions, set forth the terms of disbursement of the State share. �The
funding of the State share shall not commence until the district secures
financing for the local share.
(cf: P.L.2023, c.311, s.10)
���� 16.�� (New
section)� a.� No later than four years following the date of enactment of
P.L.��� , c.��� (C.������� ) (pending before the Legislature as this bill), the
Commissioner of Community Affairs and the Commissioner of Transportation shall
submit a report to the Legislature, pursuant to section 2 of P.L.1991, c.164
(C.52:14-19.1), and to the Governor making recommendations concerning whether
to continue the existing priorities established pursuant to P.L.��� , c.���
(C.������� ) (pending before the Legislature as this bill) or to propose new
priorities.
���� b.��� The provisions of
P.L.��� , c.��� (C.������� ) (pending before the Legislature as this bill)
shall expire five years from the date of enactment.1
���� 1[6.] 7.1� This
act shall take effect on the first day of the ninth month next following
enactment, except that the Commissioner of Community Affairs, and the
commissioners of other State departments impacted by this act may take
anticipatory administrative action in advance as shall be necessary for the
implementation of this act.