Newark Mayor Ras Baraka released a sweeping proposal to revitalize housing in New Jersey, the latest of his ambitious plans as his campaign for governor comes into shape.
The 13-point proposal includes a tax relief program to minimize foreclosures, a temporary cap on rent increases, the creation of a task force dedicated to increasing the amount of residential construction, and the incentivization of more flexible zoning laws. Another peg of his plan is to create a “First Loss Capital Fund for Affordable Housing,” which would reduce the risk of starting a major housing project.
The plan is a clear refutation of New Jersey’s “not in my backyard” tendencies, as he writes. Baraka, who has positioned himself as among the most progressive of the gubernatorial candidates, said the Garden State has 200,000 too few housing units, and that this year’s affordable housing legislation is a start but not nearly enough.
The proposal also takes the fight to municipalities, who Baraka says deserve much of the blame for soaring housing prices. The Newark mayor said taxpayers pay the attorney fees for lawsuits between the state and municipalities, and he emphasized municipalities should be held accountable for housing stagnation.
“Home rule, a once-cherished system that allowed towns to control their own destiny, has become the roadblock preventing the comprehensive, regional approach we desperately need,” Baraka wrote in the plan. “It’s an open secret: home rule is driving New Jersey’s affordability crisis. Yet, any candidate unwilling to acknowledge this reality is not serious about fixing it.”
Baraka plans to designate half of the state’s tax incentive credits exclusively for affordable housing projects — that investment could enter into the billions of dollars.
Another tenet of his plan would be to allow municipalities further flexibility in subsidizing affordable home ownership. The task force would also hold the authority to send experts to develop housing plans with municipal officials and local activists.
“People like to frame this as either a city problem or a suburban problem, but that’s a false divide,” Baraka said in a release. “As the cost of living in New Jersey continues to climb, it’s clear we’re all in this together. We need a regional, holistic approach to address the root causes—anything less is just delaying the inevitable.”
Baraka’s plan to temporarily cap rent increases would tie rent increases to cost-of-living adjustments for two years, according to the plan. Additionally, Baraka proposes to bar investment firms from purchasing multiple properties at once, a move the mayor hopes would limit price jumps.
Baraka’s aggressive plan isn’t the first progressive package he’s pitched this year. In July, the mayor released his reimagining of the state’s budget system, which included tax hikes for the state’s highest earners.
“New Jersey is in a housing crisis—over 200,000 units short—and the gap is widening. My plan doesn’t just aim to stop the bleeding; it sets us on a course to build a future where housing is affordable and accessible to all,” Baraka said in a release.