What is Affordable Housing?

“Affordable housing” is housing that is available to those with household incomes that are between 30% to 80% of the median income in this region. They can afford to rent or buy using no more than one-third of their income. In our Mercer-Ocean-Monmouth county region, the income range is $20,000 to $85,000 or more, depending on household size. Click here to see the current Affordable Housing Regional income Limits by Household Size.

Why do we have to have affordable housing in Princeton?

The NJ Supreme Court “Mt. Laurel II” doctrine and the NJ Fair Housing Act requires every municipality in New Jersey to adopt zoning that provides affordable housing opportunities. Each municipality must include its fair share of low- and moderate income housing. This is to be completed during the “Third Round” obligation period which ends in 2025.

Who tells us how much affordable housing we have to provide?

The New Jersey Superior Courts are overseeing the process of determining state and local needs for affordable homes and then allocating a “fair share” to each town. Princeton submitted a plan to the Court who determined that the plan provides Princeton’s “fair share.” Through the proposed combination of building new homes, rehabbing existing homes, and converting existing properties to affordable homes, Princeton will meet its obligation. Click here to visit Princeton’s approved plan.

Do we have to allow four other apartments for each affordable apartment in new apartment buildings?

A town’s fair share plan can require developers to set aside 20% of a development’s units for affordable homes. Recent developments in Princeton, Merwick-Stanworth and Avalon Bay, exemplify this “inclusionary” approach. Fair share plans can also include developments with a higher ratio of affordable homes. Griggs Farm (50% affordable) are examples of this type of development.

Who decides where affordable housing will be built?

With community input, Princeton’s approved fair share plan designates locations where new affordable homes can be provided. Zoning ordinances have been amended as necessary and designate zones that permit affordable development. Click here to visit Princeton’s approved plan.

Who lives in affordable housing?

Anyone who meets the eligibility and income criteria can apply for an affordable home in Princeton, with some homes being restricted to seniors, or people with disabilities. Click here to see Princeton’s Universal Affordable Housing Application. Our experience has shown that residents of affordable homes are primarily households with modest wages from retail, health care, education, civil service jobs (including police, EMT, and fire positions), self employment. Most residents work in the Princeton area.

Does affordable housing make other taxpayers pay a larger share of municipal service costs?

No. Owners of affordable homes and apartments pay standard real estate taxes. Non-profit owners make a payment in lieu of taxes (PILOT) that is negotiated with the town. They also pay sewer costs. For example, PCH communities paid approximately $600,000 in PILOT payments to Princeton in 2020.

Will more affordable housing crowd our public schools?

Princeton’s school-aged population has always fluctuated, and our schools have been closed or expanded in response. The affordable homes that will be created during the Third Round will be primarily one or two bedroom rental homes, which generally have less impact on our schools than large homes.