Bill Text: NJ A5339 | 2026-2027 | Regular Session | Introduced
Bill Title: Establishes "Missing Middle Homes for All Pilot Program" to facilitate development of pre-permitted home designs; appropriates $2 million.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced) 2026-06-28 - Introduced, Referred to Assembly Housing Committee [A5339 Detail]
Download: New_Jersey-2026-A5339-Introduced.html
Sponsored by:
Assemblywoman SHAMA A. HAIDER
District 37 (Bergen)
SYNOPSIS
Establishes "Missing Middle Homes for All Pilot Program" to facilitate development of pre-permitted home designs; appropriates $2 million.
CURRENT VERSION OF TEXT
As introduced.
An Act facilitating development of pre-permitted home designs, supplementing P.L.1975, c.291 (C.40:55D-1 et seq.), and making an appropriation.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. The Legislature finds and declares that:
a. The State of New Jersey faces a significant shortage in housing to meet the needs of a growing population;
b. This supply shortage has contributed to the cost of purchasing a home, which is broadly unaffordable for many middle-income households;
c. The development of pre-approved, build-ready construction plan sets, has been demonstrated, in cities such as South Bend, Indiana, and Kalamazoo, Michigan, to enhance the efficiency, predictability, and cost of new home construction;
d. Middle-income families impacted by these affordability challenges are generally ineligible for the existing housing programs available to moderate-, low-, and very low-income households in the State; and
e. Due to the substantial housing affordability challenges faced by many middle-income New Jersey families, it is appropriate for the Legislature to establish the "Missing Middle Homes for All Pilot Program" to facilitate the development of housing affordable to middle-income, or low- and moderate-income households, through the use of pre-permitted home designs.
2. As used in P.L. , c. (C. ) (pending before the Legislature as this bill):
"Agency" means the New Jersey Housing and Mortgage Finance Agency.
"Commissioner" means the Commissioner of Community Affairs.
"Department" means the Department of Community Affairs.
"Middle-income household" means a household with a gross household income equal to more than 80 percent but less than 120 percent of the median gross income for households of the same size within the same housing region.
"Pilot municipality" means a municipality selected by the department for participation in the pilot program.
"Pilot program" or "program" means the "Missing Middle Homes for All Pilot Program," established pursuant to subsection a. of section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill).
"Pre-permitted home design" means a home design created by the department pursuant to subsection b. of section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill).
"Program coordinator" means the official appointed pursuant to subsection b. of section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill) to administer the responsibilities of the pilot program.
3. a. There is established, in the department, the "Missing Middle Homes for All Pilot Program" to facilitate the development of housing at a small-scale, that may be purchased by middle-income households, or reserved as low- or moderate-income housing in compliance with the "Fair Housing Act," P.L.1985, c.222 (C.52:27D-301 et al.). The pilot program shall expire 10 years following enactment of P.L. , c. (C. ) (pending before the Legislature as this bill). The duration of any affordability controls, if applicable, shall be compliant with the "Fair Housing Act," P.L.1985, c.222 (C.52:27D-301 et al.) and shall not be reduced upon the expiration of the pilot program.
b. (1) Within one month following the enactment of P.L. , c. (C. ) (pending before the Legislature as this bill), the commissioner shall appoint:
(a) a program coordinator to administer the responsibilities of the pilot program; and
(b) program staff, who may be assigned to staff the pilot program from the Division of Codes and Standards, the Office of Planning Advocacy, the Office of Local Planning Services, from other divisions of the department, or from public and private entities outside of the department. In consultation with the Executive Director of the agency, the commissioner may assign staff from the agency to the pilot program.
(2) On or before the first day of the sixth month next following the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill), the program coordinator shall:
(a) through the engagement of program staff and, as necessary, outside experts, produce concept designs that maintain aesthetic continuity with many neighborhoods of the State, for potential use as pre-permitted home designs;
(b) administer an educational campaign to communicate the utility of pre-permitted home design;
(c) engage the opinion of municipal officials from different housing regions of the State;
(d) engage public opinion on the desirability of the development of the concept designs through efforts that may include public meetings in different parts of the State, and survey research;
(e) develop final pre-permitted home designs following consideration of public opinion; and
(f) initiate an application process in a form and manner determined by the department, and encourage municipalities to apply to participate in the pilot program.
c. (1) A municipality shall apply to participate in the program through the adoption of a resolution by the governing body, and compliance with simple application requirements established by the program coordinator pursuant to subparagraph (f) of paragraph (2) of subsection b. of this section. A municipality shall be permitted to apply on the condition that only certain pre-permitted home designs are to obtain the pre-approval benefits established by P.L. , c. (C. ) (pending before the Legislature as this bill). Among the applicant municipalities, the commissioner, in consultation with the program coordinator, shall select five municipalities to participate in the pilot program as pilot municipalities. In selecting pilot municipalities, the commissioner shall consider the extent to which:
(a) the prospective municipal selections collectively represent a geographically diverse cross section of development patterns, including urban, suburban, and rural areas;
(b) the geographic features of an applicant municipality facilitate the development of the department's pre-permitted home designs, to the extent that reliable data is available; and
(c) the municipality has accepted a broad range of pre-permitted home designs to obtain the pre-approval benefits established by P.L. , c. (C. ) (pending before the Legislature as this bill).
(2) If a municipality applies and is selected as a pilot municipality, the commissioner shall:
(a) direct the Office of Local Planning Services, and other divisions and offices of the department, to provide additional and expedited support in the municipality's efforts to comply with the "Fair Housing Act," P.L.1985, c.222 (C.52:27D-301 et al.); and
(b) provide preference to pilot municipalities for allocations from the "New Jersey Affordable Housing Trust Fund," established pursuant to section 20 of P.L.1985, c.222 (C.52:27D-320), for the duration of the pilot program.
(3) At any time following selection as a pilot municipality, the pilot municipality may rescind its participation in the program by ordinance of the governing body. If an application for development of a pre-permitted home design is submitted prior to the adoption of an ordinance to rescind municipal participation in the program, the development shall proceed as if the municipality continues to be a pilot municipality.
d. The commissioner shall approve of a design in order for the design to be considered a pre-permitted home design. No fewer than 10 pre-permitted home designs shall be developed by the program coordinator pursuant to subparagraph (e) of paragraph (2) of subsection b. of this section. In developing pre-permitted home designs, the program coordinator shall consider:
(1) the incorporation of off-site building methods, such as modular, pod, and panelized systems;
(2) the limitation of construction costs and maximization of efficiency;
(3) developing a range of size and housing types, for uses as small accessory dwelling units, multi-family homes of two to six units, and townhomes;
(4) consideration of architectural styles that are likely to have an appealing appearance in a broad range of neighborhoods; and
(5) designs that comply with many municipal zoning codes in the absence of the pre-approval benefits of P.L. , c. (C. ) (pending before the Legislature as this bill).
4. a. Notwithstanding any provisions of a municipal ordinance to the contrary, the proposed or actual use of a pre-permitted home design shall be a permitted use as of right in a pilot municipality. However, a development plan to construct a home in conformity with a pre-permitted home design in a pilot municipality shall comply with the following provisions of a municipal ordinance, as applicable:
(1) architectural review requirements for an application for development of a pre-permitted home design within an area designated as a historic district; and
(2) set-back restrictions and dimensional controls, except for residential density controls and minimum lot size controls, as required for other residential development in the same zoning district.
b. (1) Notwithstanding any provision of P.L. , c. (C. ) (pending before the Legislature as this bill) to the contrary, in the case of a lot located within a planned real estate development, as defined pursuant to subsection h. of section 3 of P.L.1977, c.419 (C.45:22A-23), a municipality or common interest community association may impose and enforce reasonable regulations, by ordinance or through governing documents, that shall apply to pre-permitted home designs concerning:
(a) stormwater management and drainage in compliance with the rules and regulations adopted by the commissioner pursuant to section 7 of P.L. , c. (C. ) (pending before the Legislature as this bill);
(b) utility capacity and utility connections;
(c) fire safety and emergency vehicle access;
(d) parking allocation and access to private streets or driveways;
(e) protection of common elements and common property;
(f) architectural standards consistent with the governing documents of the planned real estate development; and
(g) the allocation of any proportionate increase in common expenses directly attributable to the development or operation of a home built as a pre-permitted home design.
(2) Any regulation adopted pursuant to this subsection shall be reasonable, uniformly applied, and shall not operate to prohibit, unreasonably restrict, or materially delay the development of a pre-permitted home design.
5. A municipal agency of a pilot municipality shall not approve an application for development of a pre-permitted home design if the proposed development site is:
(1) located within an area in which there exists insufficient public sewer or water service, and within which there exists severe constraints on the use of wells or septic tanks, as determined by a competent authority, so to render the addition of new residential development hazardous to the public health; or
(2) unfit for development into housing pursuant to any applicable regulation of the Department of Environmental Protection.
6. a. (1) A municipal agency of a pilot municipality shall consider and approve an application for development of a pre-permitted home design as a ministerial action without a public hearing or review beyond that which is necessary to determine an applicant's compliance with the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill). A municipal agency of a pilot municipality may charge a development applicant a reasonable fee for submitting an application for development of a pre-permitted home design, which fee may cover the costs associated with reviewing and approving the application for development, and may, for any development application, impose a surcharge in an amount necessary to cover the anticipated costs the municipality may incur complying with P.L. , c. (C. ) (pending before the Legislature as this bill).
(2) A municipal agency of a pilot municipality shall provide a written decision on an application for development of a pre-permitted home design to the applicant within 60 days of the date on which the applicant submitted a complete application. If the municipal agency does not act upon a complete application within the 60-day time period, the application shall be deemed approved, unless an applicant agrees in writing to extend the deadline. If the municipality or municipal agency denies an application, the written decision shall explain in detail the reason for the denial and provide recommendations to correct any application deficiencies.
(3) If a municipality does not approve an application to develop a pre-permitted home design, or imposes conditions on the approval of an application to develop a pre-permitted home design, the applicant may appeal the decision to the commissioner. If the commissioner determines that the municipality's reasons for withholding approval or imposing conditions on the approval of an application to develop a pre-permitted home design are inconsistent with the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill), the commissioner shall approve the application, and shall levy the cost of the proceedings, including the applicant's legal expenses, if any, against the municipality. In the event of a subsequent judicial appeal of the commissioner's decision, the court shall consider the standard of review as set forth in this subsection for the commissioner's decision on an appeal.
b. A municipality shall not interpret or apply a provision of any other municipal ordinance, policy, or regulation so as to delay or deny approval of an application for development of a pre-permitted home design.
c. A municipality shall not condition approval of an application for development of a pre-permitted home design upon the correction of a nonconforming zoning condition.
d. Nothing contained in this section shall supersede provisions of the State Uniform Construction Code, promulgated pursuant to the "State Uniform Construction Code Act," P.L.1975, c.217 (C.52:27D-119 et seq.), applicable to the construction of a pre-permitted home design.
7. The commissioner shall adopt rules and regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), necessary to effectuate the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill). The rules and regulations of the commissioner shall include, but shall not be limited to, standards for stormwater management and drainage requirements that may be established by a municipality or common interest community association pursuant to subparagraph (a) of paragraph (1) of subsection b. of section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill).
8. Within 90 days following the conclusion of each administrative year for the pilot program, the commissioner, in consultation with the program coordinator, shall report to the Governor and the Legislature, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), regarding the allocation of the monies appropriated pursuant to section 9 of P.L. , c. (C. ) (pending before the Legislature as this bill). Each annual report shall include, but not be limited to, a discussion of:
a. the municipalities that applied, and that were selected, to participate as pilot municipalities;
b. the progress in constructing pre-permitted home designs in each pilot municipality; and
c. in the final report, the opinion of the commissioner on the advisability of continuing, expanding, or modifying the program.
9. There is appropriated from the General Fund the sum of $2,000,000 to the Department of Community Affairs for the purposes of effectuating the provisions of the "Missing Middle Homes for All Pilot Program," established pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill). The monies may also be expended for appropriate and reasonable administrative expenses incurred in the administration of the pilot program by the department.
10. This act shall take effect immediately and shall expire upon submission of the final report required to be prepared under section 8 of this act, except the regulations adopted pursuant to section 7 of this act shall remain in effect.
STATEMENT
This bill establishes the "Missing Middle Homes for All Pilot Program" in the Department of Community Affairs (department) to facilitate the development of pre-permitted home designs that may be constructed for purchase by middle-income households, or subject to deed restriction as low- or moderate-income housing in compliance with the "Fair Housing Act," (FHA) P.L.1985, c.222 (C.52:27D-301 et al.).
The bill directs the Commissioner of Community Affairs (commissioner) to appoint a program coordinator and program staff within one month following the bill's enactment. On or before the first day of the sixth month following the bill's enactment, the bill directs the program coordinator to:
� produce concept designs that maintain aesthetic continuity with many neighborhoods for potential application as pre-permitted home designs;
� engage public opinion, and the opinions of municipal officials from around the State, on the desirability of the concept designs;
� develop final pre-permitted home designs; and
� initiate an application process, encourage municipalities to apply to participate in the pilot program, and select municipalities to participate in the program.
A municipality may apply to participate in the program by resolution of the governing body, and through a simple application process to be established by the program coordinator. The bill permits a municipality to apply on the condition that only certain pre-permitted home designs are to obtain the pre-approval benefits established by the bill, but the commissioner is to consider those conditions as a factor against the municipality's selection for participation. Five municipalities are to be selected as pilot municipalities. If a municipality applies, and is selected as a pilot municipality, the commissioner is to direct certain divisions and offices of the department to provide additional and expedited support in the municipality's efforts to comply with the FHA, and grant the municipality preference for funding from the "New Jersey Affordable Housing Trust Fund."
At any time following selection as a pilot municipality, the municipality may rescind its participation in the program by adopting an ordinance. However, if a development application for a pre-permitted home design is submitted before the adoption of an ordinance to rescind municipal participation, the development is to proceed as if the municipality continues to be a pilot municipality.
No fewer than 10 designs are to be approved by the commissioner as pre-permitted home designs. The designs may consist of a range of sizes and styles, and incorporate off-site building methods to limit costs and increase efficiency while maintaining consideration for architectural appeal.
The bill provides that a pre-permitted home design is to be a permitted use in a pilot municipality. However, a development plan to construct a pre-permitted home design is to comply with certain provisions of a municipal ordinance, consisting of: architectural review requirements if in a historic district; and certain set-back restrictions and dimensional controls. The bill also requires a municipal agency to deny development approval if located in an area where development would be hazardous to public health, or unfit as a housing project due to any applicable regulation of the Department of Environmental Protection.
The bill provides that if a lot is located within a planned real estate development, a municipality or common interest community may impose and enforce certain reasonable regulations enumerated in the bill except that those regulations are not to prohibit or restrict the development of pre-permitted home designs otherwise permitted by State and local law.
The bill requires a pilot municipality to consider and approve an application to develop a pre-permitted home design as a ministerial action. The bill permits a municipality to charge a reasonable application fee and certain application surcharges associated with pre-permitted home design approvals. The bill directs that a municipal agency is to provide a written decision on an application for development of a pre-permitted home design within 60 days of the date of application, and provide a written decision if the application is denied. The bill prohibits a pilot municipality from conditioning approval of an application to develop a pre-permitted home design upon the correction of a nonconforming zoning condition. If a municipality does not approve an application to develop a pre-permitted home design, or imposes conditions that are inconsistent with this bill, the applicant may appeal the decision to the commissioner.
The bill appropriates $2 million from the General Fund to the department for the purposes of the pilot program. The bill directs the commissioner to issue annual reports detailing the progress of the pilot program, and a final report that is to also recommend whether to continue, expand, or modify the program. The program is to expire after 10 years.
