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New Jersey establishes Sustainable Tiny Home Pilot Program with $5 million appropriation

Original title: Requires HMFA to establish "Sustainable Tiny Home Pilot Program" in three regions of State; appropriates $5 million.

Last action · January 13, 2026: Introduced, Referred to Assembly Housing CommitteeSponsor: Bailey, David, Jr.

Companion · S 635same policy, Senate version
Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Would Do

New Jersey creates a three-year Sustainable Tiny Home Pilot Program administered by the New Jersey Housing and Mortgage Finance Agency, appropriating $5 million from the General Fund to award grants to builders for constructing small, energy-efficient homes in municipalities across three state regions.

Why it matters

Builders receive direct grant funding to construct residential tiny homes of 300 square feet or less, while participating municipalities must permit these developments in all residential districts without requiring s.

Background
  • The New Jersey Housing and Mortgage Finance Agency is a governmental entity within the Department of Community Affairs that provides financing for housing development in the State. context

Who It Would Affect

Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.

Directly affected

New Jersey Housing and Mortgage Finance Agency

The agency is required to establish and administer the pilot program, select participating municipalities, award grants, and submit annual reports.

Directly affected

Builders

Builders may submit applications for grant funding to construct tiny home housing developments and must report construction waste recycling quantities.

Directly affected

Pilot Municipalities

Selected municipalities must permit tiny home developments in all residential districts without bulk variances and submit annual public utility service records.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

What is the maximum size allowed for a tiny home under this pilot program?
A tiny home dwelling unit is defined as a permanent dwelling place with an interior floor space not exceeding 300 square feet.
How much money is appropriated for the program, and how is it distributed?
The bill appropriates $5 million from the General Fund to the New Jersey Housing and Mortgage Finance Agency, with $1.65 million awarded to builders in grants during each year the three-year program operates.
Do tiny home developments under this program need bulk variances from local zoning boards?
No. Any eligible project that conforms to program standards is declared a permitted use in all residential districts of a and does not require a under subsection c. of section 57 of P.L.1975, c.291 (C.40:55D-70).

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

Currently in committee. The next step in the legislative lifecycle is Floor Vote.

Procedural history

1 action
  1. Jan 13, 2026HouseIntroduced
    Introduced, Referred to Assembly Housing Committee

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Bailey, David, Jr.Primary sponsorNo profile match

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift95% confidence

Zoning Exemption for Sustainable Housing

The bill mandates that qualifying tiny home developments be permitted in all residential districts of participating municipalities without requiring a bulk variance.

Connected Entities

New Jersey Housing and Mortgage Finance Agency, Department of Community Affairs, David Bailey, Jr.
OrganizationNew Jersey Housing and Mortgage Finance Agency“Administers the Sustainable Tiny Home Pilot Program and distributes grant funds.”Map →
OrganizationDepartment of Community Affairs“Cabinet-level department housing the New Jersey Housing and Mortgage Finance Age”Map →
PersonDavid Bailey, Jr.“Assemblyman sponsoring Assembly Bill No. 772.”Map →

Sources

Open source document

njleg.state.nj.us

Analysis Score

0–100
  • Significance50
    How much this matters to a regular citizen
  • Controversy15
    Intensity of disagreement among stakeholders
  • Entertainment5
    Compellingness for a non-policy-wonk reader
  • Buzz25
    Current news / social attention level

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