Jersey City moves toward giving its residents first dibs on affordable housing

Jersey City lawmakers have passed a new measure that will give local residents first dibs on more than 1,000 affordable housing units in New Jersey’s second-largest city.

The ordinance passed by the City Council on Wednesday night won’t take effect until July 2025. But once it's enacted, Jersey City will join neighboring Hoboken and Newark in giving locals a leg up in the hunt for apartments priced for low- and medium-income people.

The Council's decision comes as New Jersey reckons with a widespread affordable housing crisis. State officials estimate that New Jersey is short more than 200,000 low-priced units for its most rent-burdened individuals. The ordinance will next go to the mayor for his signature. Mayor Steven Fulop has not said whether he will sign the bill.

The new rules won’t apply to all affordable housing in Jersey City. Any apartments created using state or federal funding tied to a statewide affordable housing mandate will be exempt. That mandate, called the Mount Laurel Doctrine, stems from a 40-year-old state Supreme Court decision that says all New Jersey cities and towns must create their fair share of affordable housing.

Jersey City Councilmember James Solomon, one of the authors of the local-preference ordinance, said the rules will cover about 1,000 current affordable apartments in the city. He added that the city has about 500 affordable units in its development pipeline and residents will have the first shot to rent those apartments as well.

“Rents are going through the roof, residents are being displaced, and if we're using the residents' taxpayer dollars to create these units of affordable housing, then they should have the first chance to get access,” Solomon said.

Jersey City — where more than 70% of residents rent their homes — stands as a stark example of the Garden State's affordability crisis. According to real estate platform Zumper, Jersey City’s $3,290 average rent for a one-bedroom apartment is the second-highest of any city in the country, just below New York City’s average of $4,300.

Solomon said he was motivated to introduce the ordinance after hearing from residents who were born and raised in Jersey City or had been there for decades. They reported being recently been shut out of some affordable housing earmarked for artists that went to out-of-town applicants.

“We know a couple of folks that won the lottery didn't live in Jersey City — and that's fine, we understand they are looking for affordable homes too," said Solomon. "But we had Jersey City residents who didn't get it, who have been in our city for years and years and years."

Councilmember Frank Gilmore, a cosponsor of the ordinance, said residents have told him they feel uneasy about the city allowing developers to build many more apartment buildings while locals are pushed out by rising prices.

“This [local preference] is an immediate tradeoff in which residents will receive a benefit instantaneously,” he said.