Lambertville, NJ - Affordable Housing

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Lambertville has a long history of assisting its low-income population and of rehabilitating sub-standard homes. The City is proud to serve residents from diverse socio-economic backgrounds. Lambertville is committed to providing affordable housing options in conformance with Uniform Housing Affordability Control (UHAC) requirements and the Fair Housing Act. The City seeks to develop housing options that are equitable, fair and to continue to provide affordable housing to low- and moderate-income households.

The City has a legal obligation to provide affordable housing

Lambertville, along with every other New Jersey municipality, is mandated to provide their “fair share” of housing for low and moderate income families within their region. This state mandate was established by what is commonly known as New Jersey’s Mount Laurel Doctrine. In accordance with the Doctrine, municipalities are required to create a Housing Element and Fair Share Plan that outlines how the town intends to meet its affordable housing obligation.

Numbers & Rounds

When we talk about our “Fair Share number” or our “obligation”, it is referring to the prescribed number of housing units that has been calculated as Lambertville’s portion of the regional need. Over the past several decades, these numbers have been updated over time in rounds.

The City is currently working to meet its Third Round obligation, while planning ahead for what will be required in the Fourth Round. The Affordable Housing Advisory Committee was established to advise and assist the Governing Body to meet its affordable housing obligation.

Defining Affordability: What is 'affordable'?
Housing is generally considered to be affordable if rents, mortgages, and other essential costs consume 28% or less of an owner-household’s income or 30% or less of a renter-household’s income. The percentage is lower for homeowners to account for the additional fees, such as homeowners’ association dues, and maintenance costs associated with ownership. In Lambertville, 34.1% of all households in occupied units are spending more than 30% of their incomes on housing costs. The percentage of renter-occupied households spending more than 30% of their incomes on housing (47.1%) is higher than the percentage of owner-occupied households (28.6%). (Source: Table DP04, 2019-2023 American Community Survey Five-Year Estimate.) The fact that almost half of renters in Lambertville are spending more than 30% of income on housing suggests that Lambertville may have a shortage of rental housing compared to demand.

Through the Uniform Housing Affordability Controls (UHAC) found at N.J.A.C. 5:80-26.1 et seq., the maximum rent for a qualified unit must be affordable to households that earn no more than 60% of the median income for the region. The average rent must be affordable to households earning no more than 52% of the median income. The maximum sale prices for affordable units must be affordable to households that earn no more than 70% of the median income. The average sale price must be affordable to a household that earns no more than 55% of the median income.

Illustrative 2024 Region 3 Affordable Gross Rents
Household Income Level (% of median)	1-Bedroom Unit Rent	2-Bedroom Unit Rent	3-Bedroom Unit Rent
Moderate (60%)	$1,645	$1,974	$2,281
Low (50%)	$1,371	$1,645	$1,901
Very Low (30%)	$822	$987	$1,140
Source: 2024 Affordable Housing Unit Rental Rate Calculations for Pricing Newly Constructed Units, AHPNJ. These are gross figures, for illustration only. They do not account for permitted utility allowances for rental units.

What are Lambertville’s Affordable Housing Income Limits? How are they determined?

The FHA divides the state’s overall affordable housing need by geographical region within the state. The City of Lambertville is in Region 3, which includes Hunterdon, Middlesex, and Somerset counties.

The FHA defines affordable housing as housing affordable to households that meet certain income standards:

● Moderate-Income: More than 50% but less than 80% of regional median income

● Low-Income: 50% of regional median income or less

● Very-Low Income: 30% of regional median income or less

Lambertville’s regional income limits are calculated by the NJ Housing and Mortgage Finance Agency (HMFA).

2025 Region 3 Affordable Housing Income Limits
Household Income Level	1-Person	2-Person	3-Person	4-Person	5-Person
Median	107,400	122,800	138,100	153,400	165,700
Moderate	85,920	98,240	110,480	122,720	132,560
Low	53,700	61,400	69,050	76,700	82,850
Very Low	32,220	36,840	41,430	46,020	49,710
Source: HMFA Regional Income Limits by Household Size, May 2025

Affordable Housing Dispute Resolution Program

This is a link to the Program on the NJ Courts page: https://www.njcourts.gov/courts/civil/affordable-housing

Clicking on any county name from either the left rail or the dropdown at the bottom of the page will take you to a list of all towns in that county that have filed something with the program. The page also includes links to all relevant documents, including the new legislation, the directive from the Administrative Office of the Court setting out the compliance procedure, the DCA Fourth Round obligations, and the 2018 Jacobson decision in the Princeton case that set forth the basic methodology for calculating those obligations.

This FAQ has been prepared by members of the Affordable Housing Advisory Commission to give residents a high-level overview of the City’s affordable housing requirements and the ways we are working to meet them.

Fair Share Housing Center (FSHC) is an organization that advocates on behalf of low-income residents of New Jersey, and was designated as an interested party by the state Supreme Court in all Third Round Affordable Housing Declaratory Judgment filings. Because there was no authoritative determination of Third Round obligations, municipalities determined their Third Round Fair Share obligations through negotiation with FSHC, and memorialized them through Settlement Agreements with FSHC that required approval by the Court. FSHC then had standing to ensure that municipalities followed through on the commitments they made in their Settlement Agreements.

The March 2024 updates to the FHA created a new Affordable Housing Dispute Resolution Program that is responsible for collecting and monitoring municipal plans to meet their affordable housing obligations. The Program is operated through the court system. FSHC will remain engaged in affordable housing compliance monitoring as an advocate, particularly with municipalities that have disputed DCA’s calculation of their Fourth-Round obligation, but it is no longer a primary party in every municipality’s planning and compliance. FSHC remains active in challenging municipalities’ affordable housing plans, with approximately 250 plans being challenged currently. Lambertville has not met all of its Third Round obligations, therefore FSHC is still engaged in Lambertville’s Third Round process.

In New Jersey, all municipalities are required to plan for, zone for, and take affirmative steps to provide a realistic opportunity for the development of their “fair share” of affordable housing. This obligation is codified in the state constitution and documented in a series of court decisions collectively referred to as the Mount Laurel doctrine. Affordable housing in New Jersey is regulated by the Fair Housing Act (FHA) and the Uniform Housing Affordability Controls (UHAC), both of which were substantially updated in 2024.

Since 1985 and the Mount Laurel II decision, the affordable housing process in New Jersey has been monitored in “rounds,” referring to specific periods of time during which certain rules are in force and municipalities have to meet certain affordable housing obligations. The First Round was 1987-1993, the Second Round was 1993-1999, the Third Round was 1999-2025, and the Fourth Round is 2025-2035. Lambertville is required to meet its Third and Fourth Round affordable housing obligations according to the rules in effect for each round. There are several resources available that outline the history of affordable housing regulation in New Jersey. FSHC provides a good summary in its Fourth-Round Guide, and Lambertville’s Fourth-Round Housing Element and Fair Share Plan, endorsed by the City Council in June 2025, also provides a detailed overview.

Affordable housing obligations can be met through the provision of realistic opportunities to develop homes along with certain bonus credits calculated based on the type of homes that would be developed.

Because Lambertville is small and densely developed, we are able to use a Vacant Land Adjustment (VLA) to reduce our Prospective Need. The VLA breaks out our Prospective Need into Realistic Development Potential (RDP), or units we must provide a realistic opportunity for and credits, and Unmet Need, or units we must try to provide a realistic opportunity for and credits. See the Glossary for more details.

Lambertville’s Third Round obligation was 137. This number is divided into 88 units and credits of RDP, and 49 units of Unmet Need.

Lambertville has complied with all of its Third Round obligations, except that Lambertville did not meet the deadline to enter into an agreement with a redeveloper for the Police Station site, an unmet need site that is required to produce five affordable family rental units. The City is in the process of negotiating with Raritan Valley Habitat for Humanity to construct six affordable for-sale homes on a portion of Holcombe Park excluded from Green Acres restrictions, which would take the place of the five units that were to be delivered through the redevelopment of the Police Station site.

Lambertville’s Fourth Round obligation, as determined by DCA and confirmed by the City, is 39 units and credits of Prospective Need. The City updated the VLA to confirm what portion of our Prospective Need will be RDP and what portion will be Unmet Need. As stated in the Fourth Round Plan, Lambertville has an RDP of 8 and an Unmet Need of 31. Lambertville also has a continuing Unmet Need of 28 from the Third Round. See Lambertville’s Fourth-Round Housing Element and Fair Share Plan for more detail.

Under NJ Municipal Land Use Law and the FHA, municipalities are required to include a Housing Element and Fair Share Plan (HEFSP) as part of their Master Plans. The HEFSP must document how a municipality will meet its affordable housing obligations.

2018

The City of Lambertville and the Fair Share Housing Center (FSHC) agreed on Lambertville’s Third Round obligation, and executed a Settlement Agreement in May 2018 memorializing the obligation, which was approved by the Court in October. The City then approved an amended Third Round Housing Element and Fair Share Plan that was adopted by the Planning Board in November and endorsed by City Council in December.

2020

Lambertville successfully negotiated with FSHC to amend its Settlement Agreement in 2020. An amended Agreement was reached in January and was approved by the Court in June of that year. Prior to the Court’s order, the City had approved an amended Third Round Housing Element and Fair Share Plan that was adopted by the Planning Board in March and endorsed by City Council in June. As of the Court’s June 2020 order, Lambertville had a Conditional Judgement of Compliance and Repose and immunity from Builder’s Remedy lawsuits.

2025

In 2025, K. Hovnanian sued the City over the City’s refusal to approve its plans for development of the former High School site. As a result of that litigation, Lambertville temporarily lost protection from Builder’s Remedy suits, but that protection was reinstated in July 2025 with conditions requiring Lambertville to approve new plans for redevelopment of the former High School site by K. Hovnanian.

Overlay zones can be used as a tool to facilitate the construction of affordable housing units, by allowing a greater building density. An overlay zone expands the zoning in a designated area, but does not change the underlying zoning. That is, it provides an option (rather than a requirement) for future development. In the case of the affordable housing overlay zone districts, a property owner can continue to use or develop the property according to existing underlying zoning, or can choose to take advantage of overlay zoning that allows for greater density in exchange for including affordable housing.

Lambertville has three affordable housing overlay zones that were adopted in April 2019. These include the Burd property (Block 1058, Lot 15) on Brunswick Avenue, the Corboy property (Block 1072, Lots 3 and 3.01) on Rock Road West, and the former Trenton Cracker Factory site (Block 102, Lot 8) on Lambert Lane.

Other overlay zones have been considered but never enacted due to public opposition. This includes the overlay zone that was introduced for the Holcombe Park site that was ultimately not passed in response to residents’ concerns that the historic nature of the property is not compatible with development.

Housing Element and Fair Share Plan (HEFSP): A required section of every municipal Master Plan that provides current information about demographics, housing, and employment conditions, and describes the specific methods by which affordable housing obligations will be met.

Prospective Need: The number of new affordable units and associated bonus credits the City must provide a realistic opportunity for in a given round. For the current Fourth Round, Lambertville must meet its obligation by June 30, 2035. (See below for more information about ‘rounds.’)

Vacant Land Adjustment (VLA): A process that allows municipalities to reduce their affordable housing obligation by analyzing the amount of developable land in the municipality. After a VLA, a municipality’s obligation is divided into the Realistic Development Potential (RDP) and the Unmet Need. The City of Lambertville performed a vacant land analysis for the Third Round and received a VLA, and the City updated the analysis for the Fourth-Round.

Realistic Development Potential (RDP): After a VLA, this is the amount of a municipality’s affordable housing obligation that it must provide realistic opportunities for in the current round.

Unmet Need: After a VLA, this is the difference between the municipality's total affordable housing obligation and its RDP. In the Fourth-Round, municipalities are required to identify sufficient parcels likely to redevelop during the current round to meet 25% of unmet need and adopt realistic zoning.

Builder’s Remedy Lawsuit: Lawsuits brought by developers against municipalities when the developer thinks the municipality is not meeting its affordable housing obligations. When developers win these suits, the court can decide what kind and scale of project the municipality must allow on a contested property. The court has the ability to override existing zoning, and the municipality loses significant control over planning and design decisions.

100% Affordable Development: As opposed to a mixed-income or market-rate development, these developments are made up entirely of low- and moderate-income housing.

Accessory Dwelling Unit: A residential dwelling that provides complete independent living facilities located within a primary dwelling or in a separate building on a property where there is already a primary dwelling.

Market-to-Affordable Program: A program through which market-rate homes are purchased and resold or rented at affordable prices to qualified households.

State of New Jersey

The New Jersey Housing Resource Center is the state's resource for finding and listing affordable housing units. Their topics list is a helpful tool to get started.

Hunterdon County

The County offers a variety of services for residents. Their Services page has a full list of programs. The Hunterdon County Housing Division offers additional resources specific to housing.

The City's Municipal Housing Liason is available to offer information about affordable housing in Lambertville. This role is currently held by the City Clerk, Cynthia Ege, who can be reached by phone (609-397-0110, ext 111) or email ([email protected]).

Fisherman's Mark offers social services, food support, and much more to members of our community.

The following documents explain the affordable housing legal requirements that Lambertville must meet. This list is not exhaustive, but is a good place to start.

● Updates to the Fair Housing Act (FHA) - Governor Murphy signed law A4/S50 in March 2024, which substantially updated New Jersey’s Fair Housing Act (NJSA 52:27D-301 et seq).

● Developing Effective Housing Plans in the Fourth-Round - Fair Share Housing Center (FSHC), December 2024.

● Fourth-Round Community Information Guide for Lambertville - City of Lambertville, November 2024.

● Affordable Housing Obligations for 2025-2035 (Fourth-Round); Methodology and Background - Department of Community Affairs (DCA), October 2024

● 2025 Regional Income Limits - Affordable Housing Professionals of New Jersey (APHNJ) developed these for several years through 2024. In 2025, the NJ Housing and Mortgage Finance Agency (HMFA) took responsibility for this. These limits are effective as of May 2025 and are updated annually.

● Uniform Housing Affordability Controls (UHAC) - HMFA adopted new rules in December 2024 to substantially update the UHAC (NJAC 5:80-26.1 et seq). Draft amendments to these rules have been published and are likely to be adopted before the end of 2025. The link above goes to a NJ Department of Community Affairs (DCA) webpage where the UHAC and the new updated rules can be found. HMFA also has a webpage about UHAC. HMFA published FAQs about the rules process in June 2025.

● Affordable Housing Dispute Resolution Program - NJ Courts webpage for this new program that provides an alternative dispute resolution process with retired judges to resolve cases regarding the Fair Housing Act (FHA).

● Mount Laurel Doctrine Fact Sheet - FSHC, 2024