The New Jersey Housing and Mortgage Finance Agency recently adopted the revised Uniform Housing Affordability Controls (UHAC) pursuant to the Fair Housing Act. These rules are in effect as of December 15, 2025.
UHAC governs the administration of affordable units and affordability controls for many affordable units in New Jersey.
The adopted rules made several changes to the administration and affordability controls of affordable housing units in New Jersey, mostly revising previously proposed deadlines, including:
- Affordability Average and Bedroom Distribution:
- Adds that for rental affordability requirements for developments approved as part of a compliance certification or that otherwise contain restricted units subject to the UHAC regulations with rent affordable to households earning 70% of regional median income may not exceed the number of very low-income unitsin excess of13% of the restricted units.
- Control Periods for Ownership Units:
- Changes notice requirement for exit sale from “effective date of extension” to “execution of a new deed restriction extending affordability controls.”
- Adds criteria for municipality to extend the affordability controls on a restricted ownership unit after receiving notice if the restricted unit is governed by a deed restriction executed prior to November 6, 2025, provided that a new deed restriction is executed according to the requirements of subsection 5:80-26.6 (h).
- Changes language to state that the entry and enforcement of any judgment of foreclosure on restricted ownership units shall not extinguish the affordability controls.
- Deletes language pertaining to purchasing the unit after foreclosure.
- Extends control period coverage for extensions of affordability controls on any restricted ownership including95/5 restrictions(previously referred to as“95/5 units” by HMFApertaining tothe apportionment and distribution of proceeds that result from a non-exempt sale after theaffordabilitycontrols expire and are notextended) toNovember 6, 2025.
- Price Restrictions for Ownership Units:
- Changesmaximumresale price for a restricted ownership unit from the original purchase price to the “most recent non-exempt” purchase price increased to reflect the cumulative annual percentage increases to the regional median income.
- Deletes language thatstatesthat condominium or homeowner association fees and special assessments charged to affordable units shall be based on the common interest percentage and the full build-out budget.
- Control periods for rental units:
- Changes the deed restricted control period for municipality extension from when it “has not already ended but will” end to when it “ends.”
- Changes notice requirement for municipality to extend affordability controls from no later than180 daysprior to the “effective date of extension” to “execution of a new deed restriction extending affordability controls.”
- Extends notice requirement for owner of intent to extinguish affordability controls on the unit at the end of the control period from no earlier than180 daysto “1 year” before the end of the control period.
- Extends control period coverage for extensions of affordability controls on restricted rental units to November 6, 2025.
- Affirmative Marketing:
- Changes the plan to a “process.”
- Includes group homes to supportive housing units required tocomply withthe affirmative marketing requirements of their respective sponsoring programs, where applicable.
- Household Certification and Referral:
- Removes language stating that supportive housing units may be exempted from the random selection process when referring households to affordable units, with the approval of the Division.
- Adds that supportive housing units, including group homes, must comply with the selection processes of their respective sponsoring programs, where applicable.
- Adds a fourth occupancy preference option for municipalities involving existing restricted units undergoing approved rehabilitation for the purpose of preservation or to restricted units newly created to replace existing restricted units undergoing demolition, and a preference for the very-low, low, and moderate-income households that are displaced by the rehabilitation or demolition and replacement.
Please read the HMFA’s FAQ on the rule proposal for additional information about the rules. The League has reassembled the working group to review the new UHAC Rule proposed changes and comments, and will provide a more in-depth review.
Contacts: Mike Cerra, Executive Director, mcerra@njlm.org, 609-695-3481, x120, and Sadayah Q. DuRant-Brown, Legislative Counsel, sdurantbrown@njlm.org, 609-695-3481, x137.