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Bill

A 4765

Establishes additional factors for municipal adjustment used in calculating fair share affordable housing obligations; provides population-based cap for housing obligations.

2026-2027 Regular Session Introduced by John DiMaio and 2 co-sponsors

The bill changes fair-share housing by adding local-service-based adjustment factors and a population-based cap to curb growth and reflect infrastructure and costs.

Introduced, Referred to Assembly Housing Committee
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Bill Summary · A 4765

Summary of Assembly Bill A4765 (2026) – New Jersey

Purpose and intent

  • A4765 seeks to reform how municipalities calculate their fair share of affordable housing obligations by introducing additional adjustment factors and a population-based cap. The goal is to produce more accurate, realistic housing obligations that reflect local infrastructure, services, and demographic impacts.

Key provisions and changes

  • Additional adjustment factors for fair share calculations (new subsection in P.L.1995, c.231):
    When a municipality’s prospective need is adjusted for lack of vacant land, the municipal adjustment must consider:

    • Population of the municipality
    • Water supply and sewerage capacity
    • School class sizes and school services
    • Public safety services
    • Public transportation and traffic

  • Triggered adjustments related to existing capacity and costs:
    A municipal adjustment must be made if:

    • Maintaining current school class sizes would be costly, or
    • Adequate school facilities/resources are not available or would incur significant costs, or
    • Adequate public safety resources are not available or would incur significant costs, or
    • Adequate transportation resources are not available or would incur significant costs, or
    • Present traffic conditions would be substantially disrupted.

  • Population-based housing-cap (new cap framework):
    Replaces the previous 20% of households cap with a population-based cap, limiting the fair share increase to prevent a municipal population growth of more than 5% over a 10-year period due to housing obligations. Each housing unit is assumed to house 4 residents (2 for senior units), affecting how population impact is calculated.

  • Interaction with existing planning and regulatory framework:

    • Ensures that land factors excluded from vacant land designations (e.g., certain public, historic, or environmentally protected lands) continue to be treated as non-vacant for purposes of determining obligations.
    • Aligns with (and amends) provisions in P.L.2024, c.2 and related statutes governing regional need, present/prospective obligations, and the process for housing element and fair share plans.

  • Administrative and procedural timelines:

    • For the fourth round, a binding present/prospective obligation determination via resolution must be adopted by January 31, 2025, with filing and potential challenges as outlined.
    • The bill preserves a sequence of challenges, certifications, and potential court actions, including county-level housing judge procedures and program-based dispute resolution, with defined windows for filing challenges and obtaining compliance certifications.
    • Implementing ordinances and resolutions for the fourth round must be adopted by March 15, 2026 (and by March 15 of March-year for subsequent rounds), with potential immunity implications if deadlines are missed.

Who/what is affected

  • Municipalities in New Jersey: their fair share calculations, planning processes, and ability to obtain immunity from exclusionary zoning litigation depend on adherence to the new adjustment factors and population-based cap.
  • Local governments and planning bodies: must integrate the new factors into housing element and fair share plans and adjust zoning accordingly.
  • Developers and housing projects: potential changes in the number of units deemed necessary and feasible, based on adjusted calculations and population impacts.

Significant timing

  • Immediate effect upon enactment (as introduced March 19, 2026).
  • Detailed deadlines apply to the fourth round (and to subsequent rounds) for resolutions, filings, challenges, and implementing ordinances, as outlined in the bill’s complex schedule.

Compiled from official sources — confirm details with the bill’s official record.

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