Newark Council Passes Affordable Housing Law

NEWARK, NJ — Cash-strapped home renters in Newark scored a victory on Wednesday when the Newark City Council passed an ordinance that will require local real estate developers to set aside 20 percent of their residential units for affordable housing.

The “Inclusionary Zoning for Affordable Housing” ordinance – which demands priority for Newark residents – will apply to projects that have 30 or more “new or substantially rehabilitated units.” The law mandates that the units be made affordable to those making 40 to 80 percent of the area's median income, according to a statement from Mayor Ras Baraka.

Baraka previously said that the law will help to prevent “the kind of gentrification that happens in other cities undergoing development.”

• See related article: ‘Groundbreaking’ Newark Affordable Housing Law Would Combat Gentrification, Mayor Says
• See related article: Your N.J. Town Probably Has To Make Room For Low-Income Housing

According to Newark officials, the ordinance applies to all new residential development throughout Newark, and isn't limited to designated areas. In addition, the affordable units must be provided on-site, although they may include home ownership as well as rentals.

Developers who are building properties that are entirely affordable housing or have less than 30 units are exempt from the ordinance. In addition, developers - with the approval of the Zoning Board of Adjustment - can make a "voluntary cash payment" to the city’s Affordable Housing Trust Fund in lieu of constructing all or part of the income-restricted units required by the legislation.

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Photo: City of Newark Press Office, Flickr