Cape May Introduces Affordable Housing Ordinances

The three measures define the city's plan for round four of the state's affordable housing process.

Published on Feb. 11, 2026

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The City Council in Cape May, New Jersey has introduced three ordinances that define the city's plan for round four of the state's affordable housing process. The most significant of the ordinances establishes affordable housing opportunities in the C-5 Service Business-Light Industrial District, while the second ordinance establishes citywide regulations and standards to govern the development of very low-, low- and moderate-income affordable units for multifamily for-sale and rental residential developments.

Why it matters

Cape May is taking steps to comply with the state's affordable housing requirements and avoid potential builder's remedy lawsuits. Affordable housing is a critical issue in many communities, and these ordinances aim to increase access to housing options for low- and moderate-income residents.

The details

The first ordinance establishes affordable housing opportunities in the C-5 Service Business-Light Industrial District, which includes areas fronting on Elmira and Bank streets near Cape Island Creek. The second ordinance repeals and replaces a previous ordinance, establishing citywide regulations and standards for affordable housing development. The council is acting to have the two-stage ordinance adoption process completed by the state's March 15 deadline, after which municipalities must have adopted implementing ordinances to further their fourth-round housing plans in order to remain immune to builder's remedy lawsuits.

  • The City Council introduced the three ordinances on February 3, 2026.
  • The state deadline for municipalities to adopt implementing ordinances for their fourth-round housing plans is March 15, 2026.

The players

Cape May City Council

The governing body of Cape May, New Jersey that introduced the three affordable housing ordinances.

Christopher Gillin-Schwartz

The City Solicitor of Cape May who stated that the second ordinance was a housekeeping measure to comply with new state statute on affordable housing.

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What’s next

The City Council must complete the two-stage ordinance adoption process by the March 15, 2026 state deadline in order to remain immune to potential builder's remedy lawsuits.

The takeaway

Cape May is taking proactive steps to address affordable housing needs in the community and comply with state requirements, demonstrating a commitment to increasing access to housing options for low- and moderate-income residents.