N.J. Stat. Ann. § 52:27D-280 et seq. § 52:27D-287l
Municipal homelessness trust fund
Operative Text
5. a. In the event that a municipality adopts a homeless housing plan pursuant to section 4 of P.L.2025, c.348 (C.52:27D-287k), the municipality shall, by ordinance, establish a municipal homelessness trust fund for the purpose of receiving funds to effectuate the homeless housing plan. Amounts collected by a municipality pursuant to subsection f. of this section shall be deposited into a “Municipal Homelessness Trust Fund” to be used exclusively for the purposes authorized by P.L.2025, c.348 (C.52:27D-287h et seq.). Any interest or other income earned on monies deposited into the trust fund shall be credited to the fund to be used for the same purposes as the principal. A municipality may deposit other funds into the trust fund, as it deems appropriate. b. No monies in the trust fund shall be utilized to pay or discharge the principal or interest on any indebtedness incurred for any purpose by the municipality or any other governmental entity. c. Amounts raised by the additional fees collected pursuant to subsection f. of this section are required to be expended for the purposes detailed pursuant to section 6 of P.L.2025, c.348 (C.52:27D-287m) within four years of being collected. d. Any monies in the trust fund that are not expended after four years shall be transferred to the Department of Community Affairs, which shall contract with a community-based organization which operates in or serves the same municipality where the trust fund exists for the purposes of P.L.2025, c.348 (C.52:27D-287h et seq.). e. Administrative costs for operating the trust fund shall not exceed five percent annually of the total amount deposited into the trust fund in a given fiscal year. f. Notwithstanding any law, rule, or regulation to the contrary, a municipality that adopts a homeless housing plan pursuant to section 4 of P.L.2025, c.348 (C.52:27D-287k) and establishes a trust fund pursuant to this section may establish, by ordinance, an additional fee of not more than five dollars, as the municipality deems appropriate, to any existing fines and penalties collected by the municipality, including, but not limited to, parking tickets and court fines. L.2025, c.348, s.5.
Under N.J.S.A. 52:27D-287l, municipalities in New Jersey that adopt a homeless housing plan may create a dedicated Municipal Homelessness Trust Fund to receive and hold money earmarked exclusively for homeless housing purposes. Funds deposited into the trust — including interest earned — cannot be used to pay municipal debt, and administrative costs are capped at five percent of annual deposits. Any money not spent within four years must be transferred to the New Jersey Department of Community Affairs, which then contracts with a local community-based organization to carry out the plan's purposes.
Plain English — not legal advice.
Property owners and managers operating in municipalities that have adopted a homeless housing plan under N.J.S.A. 52:27D-287l should be aware that local ordinances may impose an additional fee of up to five dollars on existing fines and penalties — such as parking tickets or court fines — to fund the trust. Compliant operators generally track any new municipal fee schedules tied to this provision, since those collections flow directly into the homelessness trust fund. Staying current with local ordinance changes is a standard practice for operators with properties in participating municipalities.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Tenants in municipalities that have established a Municipal Homelessness Trust Fund under N.J.S.A. 52:27D-287l may benefit from the homeless housing programs funded through this mechanism, as collected fees must be spent on purposes authorized by the broader homeless housing law. If a municipality fails to spend trust funds within four years or diverts them to unauthorized uses — such as paying down municipal debt — residents can raise concerns with the New Jersey Department of Community Affairs, which has a role in overseeing unspent funds. Tenant-rights organizations and legal aid groups can help individuals understand how local implementation of this provision may affect housing resources in their community.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 14, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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