New Jersey Assembly Majority Leader Louis Greenwald has introduced new legislation to enhance the availability and affordability of housing across the state.

Bill A4956 would establish the “New Jersey Housing Opportunity Act,” aiming to increase homeownership opportunities by promoting greater flexibility in municipal land use and zoning regulations.

“This bill is about creating opportunities,” said Majority Leader Greenwald (D-Burlington, Camden). “Starter homes have been driven to near extinction because local zoning restrictions make it virtually impossible to build a home at an entry-level price point. Today, young families across New Jersey are being forced to give up—or indefinitely delay—their dream of homeownership. The opportunities I had just a generation ago no longer exist for my adult children.”

The proposed legislation presents three options for municipalities to boost housing stock, allowing towns to choose the approach that works best for their community or to combine multiple options:

Option 1: Reducing the minimum lot size for single-family homes to no more than one-quarter acre;

Option 2: Permitting two-unit dwellings (duplexes) on lots located within single-family residential districts; or

Option 3: Permitting accessory dwelling units (ADUs) on lots located within single-family residential districts.

ADUs, often known as “granny flats” or “in-law suites,” are small self-contained units on the same lot as a primary home, offering ideal living arrangements for elderly parents or adult children with disabilities who wish to live independently while remaining close to family.

The provisions in A4956 enable municipalities to maintain control over how they meet state housing needs while ensuring that every community takes meaningful action.

“I believe it’s important for New Jersey to embrace its status as a home rule state,” Majority Leader Greenwald said. “What could better exemplify home rule than empowering homeowners with more control over their own properties?”

Majority Leader Greenwald has long championed the need to expand homeownership opportunities. He sponsored bills providing down payment assistance for first-time and first-generation homebuyers, which were signed into law by Governor Murphy.

He also introduced bill A2792, which would allow homeowners to build ADUs on their property, and A2757, which would enable developers to convert vacant office parks and retail centers into mixed-use developments. These bills, alongside A4956, would offer a range of housing alternatives, helping to create a more sustainable housing market.

Under A4956, any municipality that fails to adopt at least one of the three choices to increase housing stock would default to the reduced lot size option for single-family residential development. The bill’s provisions exclude historic districts and lots bound by existing covenants or restrictions.