Governor Phil Murphy Propose New Tax Credits for Low-Income Housing and Partnering with Hospitals to Provide Homes for the Homeless, Low-Income Residents and Hospital Staff
On October 2, 2018, at the annual Governor’s Conference on Housing and Economic Development, New Jersey Governor Phil Murphy promised to give tax credits to help revitalize communities and build the housing needed to address New Jersey’s housing crisis.
“Speaking in Atlantic City yesterday to several hundred attendees at the annual Governor’s Conference on Housing and Economic Development, Murphy stressed the importance of ensuring that actions to improve the state’s economy include building homes affordable to New Jerseyans.”
“Economic development cannot be skewed to mean only that which benefits shareholders,” Murphy said. “We can have strong economic growth and safe, affordable housing options for families. We can have strong and diverse communities.”
This was Governor’s Murphy’s first Governor’s Conference. In the past, former Governor Chris Christie did not attend the conference.
“For many in the housing community, the fact that Murphy turned up at the conference to discuss his plans showed the importance he places on developing local economies.”
A few days before the Governor’s Conference, Governor Phil Murphy released his economic plan which sets the goals of by 2025, creating 300,000 new jobs, including jobs in the innovative technology sector, and using a $500 million state-led venture capital fund for investments. The plan hopes to revamp the state’s economic-development tax-incentive programs as a way to “jump-start” growth in communities across the state.
Governor Phil Murphy envisions using tax credits for a variety of investments to spur revitalization. “Sites that were part of our economic past can be part of our future — where new and affordable housing can replace a barren lot, connecting a community rather than separating it,” Murphy said.
Federally funded Opportunity Zones are a plank of Governor Murphy’s economic plan. Opportunity Zones are designed to bring new private investment into distressed neighborhoods by giving them a preference for taxes on spending in the zones.
“It is into these communities — overlooked areas where significant numbers of residents live in persistent poverty — that we will aim to direct new private capital investment, to create jobs and restore economic vitality,” Murphy said.
At the Governor’s conference, “Leaders of the key state agencies involved in economic development and housing discussed other projects in the works to help struggling communities and, in many cases, provide homes for those with low incomes. Among them were
- Awarding as much as $30 million in tax credits a year over three years to build 1,500-2,000 low-income housing units, with priority given to communities with high-performing schools and opportunity zones;
- Including healthcare components, such as a nurse and physical activities on site, in new senior-citizen housing construction to better help residents be able to live in their apartments longer;
- Partnering with hospitals to help fund new housing developments of 60-70 units in distressed areas to provide homes for the homeless, low-income residents and hospital staff.