On September 29, 2026, Governor Mikie Sherrill released New Jersey’s first statewide Housing Strategy & Progress Report under Executive Order No. 17 (“EO17”), which created the Housing Governing Council during the Governor’s first 100 days in office. The Strategy is not a single program or mandate, but it establishes a statewide framework that could reshape where housing is built, how quickly projects move, and which projects receive public support. For developers, it is an early roadmap for land, approvals, capital, and municipal partnership opportunities.
Background
The Strategy is organized around five pillars: delivering more homes; speeding projects to shovel-ready status; partnering with municipalities; expanding access and homeownership; and lowering costs, combating unfair practices, and keeping people housed. It acknowledges that New Jersey needs between 350,500 and 406,500 new homes over the next ten years, far outpacing the current construction pace of 22,000 to 28,000 units per year.
What This Means for Developers
- State Land and Transit-Oriented Development Pipeline
NJ TRANSIT’s LAND Plan envisions 14,000 to 20,000 homes over 30 years on approximately 800 acres. An April 2026 Industry Day showcased 11 sites, and RFPs were issued in June 2026 for two TOD sites. Hamilton, Camden, and Atlantic City are among other potential locations. The State has also identified more than 2,300 acres of additional state-owned land, with a preference for structures that allow the State to maintain ownership. Developers should monitor RFP opportunities and position themselves early for TOD and state-land development opportunities.
- Permitting Acceleration
The State has piloted a permitting dashboard across 10 projects, six of which involve 3,713 housing units, including 617 affordable units, and plans to expand the initiative. Proposed permitting “shot clocks,” coordination between local and Uniform Construction Code processes, and updates to the UCC model code could shorten development timelines.
- Near-Term Capital Opportunities
The State Tax Credit Subsidy Program currently has up to $500 million available, with an auction of up to $60 million opening for bids on October 16, 2026. Aspire is paused for new applications while NJEDA re-evaluates the program; however, more than 40 projects and 7,500 homes remain in the pipeline.
NJHMFA is proposing a cost-cap exemption of up to $2 million for extraordinary remediation and site-preparation costs, while NJEDA is pursuing a site-readiness initiative. Project teams should align financing calendars and closely monitor program requirements and deadlines.
- Municipal Incentives and Fourth Round Opportunities
The Coughlin/Mukherji law directs DCA, NJDOT, and DOE to prioritize grants for municipalities that adopt pro-housing reforms, including accessory dwelling units, duplexes, triplexes and townhomes, reduced parking requirements near transit, and commercial corridor conversions, and that are successfully permitting additional housing. DCA rulemaking will establish the tracking, ranking, and scoring framework.
At the same time, DCA has established a combined present and prospective Fourth Round affordable housing obligation of 150,108 homes over the next ten years, including approximately 85,000 units expected to be constructed. Developers should identify municipalities likely to adopt these reforms and evaluate potential land acquisition, rezoning, and builder’s remedy opportunities as local housing plans begin to take shape.
Agency backlogs are also improving. DEP’s Freshwater Wetlands Letter of Interpretation backlog is down 72%, 99% of complete applications pending at least 18 months have been reviewed, the Remedial Action Permit backlog is down 44%, and the NJDOT Minor Access Permit backlog has been eliminated. Applicants should review the status of pending permits while continuing to preserve contingencies for future rulemaking.
Looking Ahead
The Strategy remains a policy framework rather than a binding regulation or statute. Implementation will depend on future rulemaking, legislation, appropriations, and program-specific funding and application requirements.
Key near-term dates include the October 16, 2026 tax credit auction and the extended October 28, 2026 deadline for Opportunity Zone recommendations. Treasury certification is expected during the fourth quarter of 2026.
Contact
For more information regarding development, zoning, permitting, and affordable housing opportunities arising from New Jersey’s Housing Strategy, please contact one of the following MSW team members:
Matthew E. Gilson
Partner
(973) 241-3478
mgilson@murphyllp.com
Chris J. Murphy
Partner
(973) 705-7421
cmurphy@murphyllp.com
Aileen Brennan
Counsel
(862) 418-3590
abrennan@murphyllp.com
