M id A tlantic Real Estate Journal — New Jersey — April 2025 — 27A
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N ew J ersey Q&A with Bohler’s Dan Duggan and Adam Alexander How New Jersey’s Affordable Housing Act fourth round opens more doors
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Jersey to meet an affordable housing “obligation” number. Each town must accept its obligation by January 2025 and have a concrete plan for affordable units by June 2025. Post - poning com- mitments is no longer an option – now there’s a direct path to accountability. This shift opens up signifi - cant opportunities for collabo - ration between developers and Adam Alexander
municipalities to devise cre - ative solutions that can make projects feasible, which may not have been possible in the past. Where do you see the big- gest opportunity to leverage this legislation? Dan: One of the biggest op - portunities we see for devel - opers lies in leveraging this legislation to transform under- performing commercial sites such as office parks, shopping centers, and manufacturing spaces that haven’t adapted to evolving market demands. Many of these properties are in highly desirable locations with
ousing affordability remains a pressing issue in New Jersey.
established infrastructure but may lack the necessary zoning or density allowances to sup- port a viable project. However, many municipalities are now more open to adopting the zon - ing changes needed to facilitate projects that address affordable housing needs while revital - izing underperforming assets. Adam: Bohler’s planning team is well-positioned to help communities tackle their af- fordable housing shortfalls with creative concepts and yield studies for redevelopment- ready properties. By transform - ing outdated retail spaces or
converting office and industrial properties into multifamily and mixed-use projects, we can help drive revitalization while creat - ing vibrant community spaces. Our approach prioritizes out - door areas for play, relaxation, and social connection, a strat- egy that has already succeeded in Princeton, Rochelle Park, and Metuchen, where these cre - ative solutions have enriched communities and expanded af- fordable housing options. What are some examples of successful revitalizations? Adam: In Metuchen, Klein continued on page 30A
Recent data reveals that nearly 50% of renters al- locate 30% or more of their income to rent, a des- ignation that categorizes
Dan Duggan
them as “cost-burdened” ac - cording to the federal Depart- ment of Housing and Urban Development (HUD). Compounding this challenge, the construction of attainable multifamily housing has be - come increasingly difficult due to municipal resistance to the density necessary for financial viability. Despite state man - dates requiring municipalities to fulfill their “fair share” of affordable housing, demand continues to outpace supply by more than 214,000 units. However, a promising new approach is emerging: mu- nicipalities are beginning to engage in discussions about updating zoning regulations, allowing for increased density, and offering tax incentives to facilitate successful develop - ments. With the Fourth Round of New Jersey’s Affordable Housing Act mandating that towns accept their obligations by January 2025, the time to act is now. In this Q&A, Bohler’s Dan Duggan and Adam Alexan- der discuss evolving legisla - tion and new incentives that help turn underperforming properties into thriving com - munities. Developers who act early can secure prime sites and strike better deals. What is NJ’s new affordable housing legislation? Adam: The legislation es - sentially expands and modifies the state’s Affordable Housing Act as New Jersey enters its Fourth Round of implementa- tion. This legislation provides clearer guidelines on municipal obligations and introduces a streamlined compliance process to support consistent affordable housing development across the state. Notably, it offers new incen - tives – like increased density, new zoning, or tax incentives – making it more appealing for developers to contribute to affordable housing solutions. Dan: The legislation requires every municipality in New
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