In a decisive move to address the state’s persistent housing affordability crisis, Governor Mikie Sherrill announced on Tuesday a dual-pronged initiative to transform underutilized state-owned land into vibrant, mixed-income residential communities. By leveraging prime real estate adjacent to transit hubs in Bayonne and Linden, the administration is signaling a shift toward a “whole-of-government” approach to urban planning, one that prioritizes housing production and smart growth over stagnant land use.
The solicitations, managed by NJ Transit and the New Jersey Economic Development Authority (NJEDA), serve as the first major legislative and administrative milestones under the Governor’s Executive Order No. 17. The directive, aimed at streamlining housing development, has prompted state agencies to pivot away from passive land management toward active, high-impact redevelopment.
The Strategic Shift: Leveraging Public Assets for Public Good
For decades, many state-owned properties near transit lines—particularly surface parking lots—have remained underutilized, serving a singular purpose despite their potential to alleviate New Jersey’s housing shortage. The new solicitations seek private-sector partners to redevelop these sites into multi-functional hubs that integrate residential apartments, ground-floor retail, and community amenities.
"From Day One, I have been relentlessly focused on making New Jersey more affordable for working people," Governor Sherrill stated during Tuesday’s announcement. "New Jersey has not built enough housing to keep pace with the needs of our growing state, and families are paying the price. If we are serious about making New Jersey more affordable, we have to be serious about building more housing."
This initiative is not merely about construction; it is a calculated effort to increase the state’s housing stock while simultaneously boosting transit ridership and generating non-farebox revenue for NJ Transit. By densifying areas around rail stations, the state hopes to create self-sustaining, walkable communities that reduce reliance on personal vehicles and lower the cost of living for residents who can trade long commutes for proximity to the rail network.
Project Breakdown: Bayonne and Linden
The two initial projects represent distinct models of transit-oriented development (TOD) that reflect the specific needs of their respective municipalities.
Bayonne: The 34th Street Revitalization
NJ Transit has issued a Request for Qualifications and Proposals (RFQP) for a 4.3-acre site situated directly adjacent to the Bayonne-34th Street Hudson-Bergen Light Rail station. The vision for this site is a comprehensive transformation of existing surface parking into a modern transit-oriented community.
Key requirements for the Bayonne development include:
- Affordability Targets: At least 20% of the residential units must be permanently reserved as affordable housing for low- and moderate-income households.
- Multi-Modal Integration: The site will feature improved bus connections, bicycle infrastructure, and advanced micro-mobility options.
- Public Amenity Space: The proposal mandates the inclusion of public open space and accessibility upgrades to ensure the site serves not just the new residents, but the broader Bayonne community.
- Retail and Commerce: Ground-floor retail space is intended to create a "main street" atmosphere that encourages local economic activity.
Linden: Activating the Downtown Core
The NJEDA has taken a different approach in Linden, focusing on a property at 101 W. Elizabeth Ave. The site, which the NJEDA acquired from NJ Transit, sits strategically between two existing mixed-use developments and benefits from direct access to both the Northeast Corridor and the North Jersey Coast rail lines.
The goal for the Linden project is to anchor the city’s downtown district. Developers are expected to submit proposals that prioritize:
- Energy-Efficient Design: The administration is pushing for modern, sustainable building standards.
- Pedestrian Connectivity: The design must seamlessly link the new residential units to the transit station and the existing downtown commercial corridor.
- Mixed-Income Housing: Consistent with the statewide goal, the project will prioritize a mix of housing types to ensure long-term affordability and socioeconomic diversity.
Chronology and Deadlines
The administration is operating on an accelerated timeline, underscoring the urgency of the housing crisis.
For the Bayonne Project:
- July 21, 10:00 a.m.: Mandatory site visit for interested developers.
- August 18, 4:00 p.m.: Deadline for the submission of a "Notice of Intent."
- September 23, 4:00 p.m.: Final submission deadline for project proposals.
For the Linden Project:
- August 3, 5:00 p.m.: Deadline for submitting technical questions regarding the RFQP.
- September 28, 2:00 p.m.: Deadline for submitting final proposals via the NJEDA’s Bidding Opportunities portal.
Supporting Data: The LAND Plan
The Bayonne project is a flagship initiative of NJ Transit’s "Leveraging Assets for Non-farebox Dollars" (LAND) Plan, which was unveiled in late 2025. The plan is a long-term financial strategy intended to bridge the agency’s budget gaps by monetizing its massive real estate portfolio, which spans approximately 8,000 acres.
The LAND Plan aims to generate upwards of $1.9 billion in revenue over the next 30 years. By converting dormant parking lots and underutilized rail-adjacent land into revenue-generating mixed-use developments, NJ Transit can stabilize its operating budget without relying solely on fare increases. Beyond the financial gain, the plan projects that these developments will catalyze local tax base growth and create thousands of construction and permanent jobs across the state.
Official Responses and Political Alignment
The initiative has garnered support from across the political spectrum, with local and state leaders highlighting the collaborative nature of the effort.
Senate President Nick Scutari (D-22nd District) praised the move as a model for future state-municipal partnerships. "Meeting New Jersey’s housing needs will require collaboration, innovation, and a commitment to making the most of our public assets," Scutari noted. "Projects like these demonstrate how we can expand housing opportunities, encourage economic growth, and make better use of the transportation infrastructure that already connects our communities."
Local officials have been equally receptive. Bayonne Mayor Sharon Ashe-Nadrowski expressed her enthusiasm for the redevelopment of the 34th Street station property, citing its potential to enhance the city’s urban fabric. Similarly, Linden Mayor Derek Armstead noted that the project is a natural progression of the city’s ongoing downtown revitalization efforts. "We look forward to another exceptional project that complements our downtown, enhances the area surrounding the train station, and continues to attract residents, businesses, and visitors to Linden," Armstead said.
Implications for the Future of New Jersey Housing
The urgency of this initiative is underscored by the current state of the New Jersey housing market, which is characterized by record-high rents and limited inventory. By bypassing the traditional bureaucratic delays often associated with such large-scale projects, the Sherrill administration is attempting to change the narrative around housing production.
"Today’s announcements show that my administration is not waiting around for a report to take action," Governor Sherrill remarked. "Before the ink is even dry on responses to my housing executive order, I am pleased to see agencies taking clear and decisive steps toward building more housing."
The implications are significant. If these two pilot projects succeed, they will likely serve as a blueprint for the remainder of the state’s 8,000-acre portfolio. For developers, this represents a new era of opportunity, provided they can meet the stringent requirements for affordability, sustainability, and connectivity. For the citizens of New Jersey, it represents a long-overdue commitment to addressing the housing supply crisis at the source—the land itself.
As the state moves toward the fall, when formal reports on the impact of Executive Order No. 17 are due, these two sites in Bayonne and Linden will be closely watched. They are the frontline in a broader,, high-stakes battle to ensure that New Jersey remains a viable, affordable home for the workforce that powers its economy. The success of these developments could define the trajectory of urban planning in the state for the next decade.
