New Jersey law gives towns that zone for more housing an edge for state grants
A law signed August 27, 2026, rewards towns that allow accessory units, duplexes, less parking or housing near transit with preference for state grants, road money and school construction aid.
Builders of small multifamily, infill and transit-area housing may find more New Jersey towns willing to rezone, because the state will now favor municipalities that allow more homes when it hands out competitive grants, road money and school construction aid. Assembly Bill No. 3877 was approved on August 27, 2026, as P.L. 2026, c. 78; it lets a town's planning board run a special review of its master plan and zoning to qualify for preferential status, and directs the Department of Community Affairs (“DCA”) to rank qualifying towns and adopt rules. The act takes effect on “the first day of the ninth month next following enactment,” which is May 1, 2027.
P.L. 2026, c. 78 (Assembly Bill No. 3877, 1R) (approved Aug. 27, 2026)