“Emergency” Amendments to UHAC Significantly Alter Affordable Housing Landscape Ahead of Fourth Round
On December 19, 2024, the New Jersey Housing and Mortgage Finance Agency released “emergency” revisions to the Uniform Housing Affordability Controls (UHAC), N.J.A.C. 5:80-26.1 et seq., which represent a sweeping change to the established affordable housing development landscape. Instead of being strictly limited to the updates required by the recent updates to the Fair Housing Act, these revisions are far more extensive. As of this writing, it does not appear the regulations have been proposed for notice and comment under the standard procedures pursuant to New Jersey’s Administrative Procedures Act. A copy of those regulations are available here. These new “emergency” rules went into effect immediately and will apply to any project not part of an existing Third Round settlement. There is no express grandfathering provision allowing projects that were approved as of December 19, 2024, much less those that were administratively complete, to continue to comply with the former UHAC regulations. Accordingly, all New Jersey developers should be aware of these changes and be sure to incorporate them into their pipeline of proposed inclusionary projects. The below is meant only as a summary of the high-level changes. Among the changes are the following: Unit mixes and bedroom distribution are changed. At minimum, the number of bedrooms must be at least twice the number of...