Credit: (Colleen O’Dea/NJ Spotlight News)New Jersey programs that are unable to earn rent or are trying to buy their first home are, at least in part, by increasing fees for high-cost home sales under Gov. Phil Murphy’s budget proposal. Subsidies can be subsidized.
Murphy is looking to increase the tax rate on the sale of property from $1 million to over 2% to 3% of the sale of property over $2 million. Currently, the state charges a 1% supplementary fee for all properties sold for more than $1 million for the buyer to pay, in addition to the $6.05 real estate transfer fee paid by the seller of $500. The transfer fee for basic property is estimated to be nearly $500 million by June 30th of this year, and $512 million from July 1st. If lawmakers agree to increase that next year.
Affordable housing advocates for paying for “luxury home sales.” They hope that the state will continue to increase spending, build more affordable homes and support homeless diversion and eviction prevention programs and shelters. With the full budget document still not available, how much Murphy wants to spend on housing-related programs next year, and how much he detours from the state’s affordable housing trust fund to cover non-construction programs. It’s unclear if you want to do it. . Supporters don’t want to see diversion.
“We can’t take our eyes off the award,” said Beverly Brown Ruggia, financial justice organizer at New Jersey Citizen Action. “What needs to happen here is that we need to create more affordable housing. It’s myopic to divert money at this stage. We need to increase the funds.”
In a speech Tuesday, Murphy said his administration will “provide yet another round of record tax easing” for some homeowners and tenants. Murphy raised about $1 billion in new taxes and fees, including that relief in its $58 billion budget starting July 1. After a few months of hearing, Murphy and lawmakers will negotiate a different budget than what they proposed Tuesday before the July 1 deadline.
Property tax relief
Executives say they won’t be cut to direct property tax relief programs like Anchors and Senior Freezes, but neither will these gains increase for the more than 2 million people who received them. Maximum Anchor benefits are $1,750 for senior homeowners eligible for income, $700 for eligible seniors, $1,500 for non-senior owners and $450 for tenants. Murphy’s budget proposal would be to spend a total of $4.3 billion on direct property tax relief.
Part of that total includes $600 million to help launch a new real estate tax relief program called Stay NJ, which is defended by democratic legislative leaders and is due to commence in early 2026. It’s there. The ultimate goal is to cut property tax bills by half for many eligible recipients.
However, these programs don’t really help people who are struggling to pay rent or who support people who don’t own a home yet.
This year, state efforts on housing policy may be important, speaking on massive cuts to the large Urban Development Bureau in Washington. More than 300,000 New Jersey residents received federal rental assistance, with over half taking home selection vouchers known as Section 8 in 2023, according to the Nonpartisan Center on Budget and Policy Priorities. I put it in. Rental support for 2023.
Housing aid is important in one of the nation’s highest regional states. The National Low Income Housing Coalition estimates that New Jersey is affordable for everyone in need, with nearly 215,000 housing units being short. The 2024 annual reach report found that minimum wage workers need to work 84 hours a week to buy a one-bedroom apartment with an average market rent of $1,654 a month.
Affordable housing
For years, New Jersey has spent state funding on building more affordable housing units. They have also helped people with very low incomes pay rent to avoid homelessness. The amount available is much lower when federal funds are available than during and after the Covid-19 pandemic.
According to the current state budget, which ended June 30, about $200 million was available from two federal community relief programs to cover emergency housing and rental assistance programs, but that money was all It’s been exhausted.
Without that, the state’s rental assistance program is a major state-funded option for those who need to help pay rent. Approximately $38.5 million was budgeted for the fiscal year ending June 30th. The application period this year has already been closed. The rental assistance program opened a three-week waiting list in January, selecting 6,000 households through the lottery and was featured on that list. The income limits to qualify will vary depending on the size of the county and household. This ranges from $27,450 in Atlantic County to $40,950 in Hunterdon, Middlesex and Somerset counties, and $40,100 to $58,475 in the same counties, respectively. Veterans who are permanently disabled over the age of 62 and those who are not currently housed preferred support.
The state has two major homelessness prevention programs, with funding of nearly $10 million. We provide up to three months of assistance to pay past rent for those at imminent risk of eviction due to temporary financial issues. The other is similar, but is intended for very low-income households. It’s less than 30% of the median region or up to $30,000 for individuals in the state’s wealthiest county. Emergency shelter.
An estimated 6,680 people are expected to receive housing aid this year, with 1,200 people getting help to prevent homelessness, according to documents supporting the current budget.
Raiding the Affordable Housing Trust Fund
The real estate transfer fee, collected as a percentage of the price of all homes for sale, is the main source of funding for the state’s affordable housing trust fund dedicated to building new homes. However, in many cases, the state has used money from trust funds to help pay for other rental and ownership assistance programs. That’s more than $70 million this year, according to the NJ Spotlight News Analysis of the State Aupproations Handbook.
That doesn’t work with many housing advocates. Many housing advocates have pledged to end the misappropriation of money from the trust fund, and arguing that the state should use the revenues of the general fund to cover other housing-related programs. I’m paying attention to this. They also note that New Jersey’s new Affordable Housing Act has towns seeking financial support from the state to build tens of thousands of new homes. Masu.
“Our organization has been able to work with many towns to create more affordable living opportunities for its residents. Much of that work has been possible through the Affordable Housing Trust Fund. It’s become “Humanity.
“It’s too big in New Jersey, and individuals and families often await in desperate situations. But these funds allow us to provide new homeownership opportunities faster and more efficiently. Without such an initiative, local governments may struggle to fulfill their affordable housing commitments.”
The 2026 budget document shows that the state has paid $668 million over the past seven years to build affordable homes.
Repurposed last year
Last year, Murphy relocated $25 million from the Housing Trust Fund to bring a total of $40 million to the state Department of Housing and Mortgage Treasury down payment assistance program, angering some supporters. HMFA runs it, running many other programs designed to help low-income, first-time, first-generation home buyers buy their homes.
The Down Payment Assistance Program, a residential and mortgage finance agency, offers eligible low- and middle-income residents up to $15,000 for down payments and closure costs. Income limits and amounts of support vary by county. The first generation down payment assistance program will provide additional $7,000 down payments and closing costs assistance to people whose parents are not homeowners. Those participating in the program must work with HMFA-designated lenders.
Murphy wants to put another $40 million in the down payments program. It is unclear how much of that $40 million will be diverted from the trust fund.
“We’re excited to announce that we’re a great place to go,” said Staci Berger, president and CEO of New Jersey Housing and Community Development Network. “Take AHTF to anything other than intended use is a failed policy during the Chris Christie era, leading to a housing crisis, so many of our neighbors are experiencing it now. It is financially irresponsible to do anything other than fully fund the creation of an affordable home.”
Other support programs
Many other state initiatives help people struggle to pay their bills. Without looking at the budget document, it is unclear whether these funds will remain stable, increase or decrease.
One of the biggest programs known as Liheap or Home Energy Assistance offers an average of $490 a year to approximately 245,000 low- and middle-income New Jersey households to help pay for heating and cooling bills. I will. The program’s $120 million comes from the federal government and could be subject to the Trump administration’s whim.
However, there are two other state-based programs.
The Universal Service Fund program, created by the State Utilities Commission, provides monthly credits on housing and natural gas costs to maintain a total of 2% to 4% of annual income, and a total of $180 per month in gas and electricity. Provided. To qualify, households’ monthly income is more than 60% of the national median, and for a family of four, it is about $7,676 per month, the same as LiHeap qualification.
Additionally, many other types of winter end programs include temporary support for poor families, such as water, wastewater, gas, or electricity being cut off between November 15th and March 15th. Protect customers who are supported by. Households must contact the utility company to request dismissal protection.
Those whose income exceeds the limits of these programs but still need assistance can apply for the NJ Stock Energy Assistance Grant. The program also helps with mortgages, rent, property taxes and water bills.
The State Department has DCAID screening tool that helps people determine eligibility for many assistance programs.
