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Grants to New Jersey Municipalities and For-Profit and Nonprofit
Developers for Housing Projects to Benefit Low-Income Residents

Affordable Housing Trust Fund (AHTF)

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New Jersey Department of Community Affairs (NJDCA)

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Grants to New Jersey municipalities and for-profit and nonprofit developers for rental and homeownership projects that benefit low-income residents. Funding is intended for projects involving 25 units or fewer. Grant funds may be used to strengthen neighborhoods and stimulate economic development across the state.

The current allocation of the Affordable Housing Trust Fund will support affordable rental and homeownership projects and create a funding stream for projects that fit into a variety of communities and that currently do not have a dedicated state funding stream. Financing will be distributed through three funds:

  • Municipal Settlement Fund - This fund will help communities create smaller-scale projects that fit into the landscapes of their neighborhoods and assists municipalities in fulfilling their court-sanctioned affordable housing settlements. Applicants may be municipalities or developers supported by the municipality, and municipalities will be required to provide leverage in the form of funding from their own Affordable Housing Trust Funds or, where there is no AHTF, in the form of publicly owned property made available at low or no cost, or some other form of investment. 
  • Neighborhood Partnerships Fund - This fund will support the development of affordable housing in Qualified Urban Aid Towns, particularly those projects that leverage other existing resources to strengthen their neighborhoods. This fund will prioritize projects that further community development initiatives from coordinated state investments from DCA or other state agency projects and partnerships with private sector investors. 
  • Innovation Fund – This fund will provide financing for innovative projects, as well as funds for studies, plans and technical services for municipalities as allowed under the establishing statute for these funds. This fund will prioritize innovative projects that may not fit under the umbrella of the other two funds, such as makerhoods, tiny homes, housing innovations aimed at the Asset Limited, Income Constrained, Employed (ALICE) population, healthy homes and new technologies. A portion of these funds may also be used for grants to municipalities to create long-term affordable housing plans. Additionally, the fund may be used for capacity building initiatives, such as the creation of a technical guidance “library” offering case studies and how-to information on the development of new models of housing, changes in redevelopment practices, reducing regulatory barriers that increase construction cost, etc. 

Priorities can be found at

Eligible Costs can be found at

GrantWatch ID#:

GrantWatch ID#: 189915

Estimated Total Program Funding:


Estimated Size of Grant:

Award Minimum: $50,000

Maximum Award:
- Municipal Settlement Fund and Neighborhood Partnerships Fund: $6,000,000
- Innovation Fund: $2,000,000

Term of Contract:

Timeframe for Completion of Activities: 2 Years

Additional Eligibility Criteria:

Eligible Applicants:
- Municipalities
- For-Profit Housing Sponsors
- Non-Profit Housing Sponsors
- Individuals, Corporations, Limited Partnership, etc.

Ineligible Project Type:
- The required affordable portion of any inclusionary development
- Conversion of public housing to homeownership
- The payment of court ordered judgments or governmentally imposed fines
- Projects that can be funded from other sources
- Projects that are currently or anticipate receiving other DCA or NJHMFA funding

Ineligible Costs can be found at

Pre-Application Information:

Deadline for Submission: 6/30/2022
Deadline for Initiation: 6/30/2022

Grant Period Start: 8/20/2021
Grant Period Stop: 9/30/2023

- Prior to application submission, interested applicants may submit pre-applications and staff will contact you to discuss potential projects.
- Applications will be available through SAGE and will be reviewed on a rolling basis. Once received, staff will review applications to ensure they meet threshold requirements. Projects that meet threshold will move to underwriting. Staff will schedule meetings with the development team, as well as a site visit, as part of project review.
- Once the project has completed underwriting and project review, staff will make funding recommendations to the Commissioner of DCA. The Commissioner will have final approval.
- DCA anticipates that funding decisions will be made within three months of application submission. The Applicant will be sent a letter notifying them of that decision.

Technical Assistance Meeting: Staff encourages applicants to schedule a 1 on 1 technical assistance conference. Contact Lorissa Luciani

DCA staff will conduct a site visit with a focus on analyzing the immediate project, neighborhood market conditions and support for the development of the proposed units.

Structure of Funds:
Funds are provided on a reimbursement basis as a soft second amortizing loan at 1% with a term equal to the affordability control period. Annual repayment is 50% of net cash flow, if available. Unpaid accrued interest will be added to the outstanding principal. All outstanding principal and any accrued interest will be due at the end of the term.

Webinar recording:

More information:

Contact Information:

Before starting your grant application, please review the funding source's website listed below for updates/changes/addendums/conferences/LOIs.

Apply Online:

Contact Information:
Lorissa Luciani
(609) 777-4161

Submit pre-applications to:

Department of Community Affairs
PO Box 800
Trenton, NJ 08625-0800

URL for Full Text (RFP):

Geographic Focus:

USA: New Jersey

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