New Jersey Healthy Homes Initiative 2027

The New Jersey Healthy Homes Initiative 2027 is a state grant opportunity managed by the New Jersey Department of Community Affairs in partnership with the Division of Medical Assistance and Health Services. The program aims to provide permanent, affordable, community-based housing for New Jersey FamilyCare members who are experiencing or at risk of homelessness or institutionalization. The initiative seeks to develop approximately 200 deed-restricted rental units consisting of one, two, and three-bedroom homes. Eligible participants must be at least 18 years old, New Jersey residents enrolled in Medicaid, and earn less than 30 percent of the Area Median Income. Funding for construction is provided via 30-year zero percent interest forgivable mortgages, while operating costs are supported through CORRA funding. To maintain long-term affordability, the program utilizes project-based State Rental Assistance Program vouchers with a 10-year term, renewable twice to cover a 30-year deed restriction. Tenants are required to pay a subsidized rent equal to 30 percent of their adjusted gross income. Developers must submit applications through the NJDCA SAGE portal, which are reviewed on a rolling basis. The approval process involves a preliminary review by NJDCA and a compliance assessment by DMHAS to ensure units meet the HCBS Settings final rule for community integration. Once approved, units are allocated to Managed Care Organizations based on their proportion of enrolled NJ FamilyCare members through a randomized selection process. MCOs then prioritize eligible members with behavioral health, respiratory, or chronic conditions, as well as those transitioning from institutional settings. The application deadline is June 30, 2027.