Newark, NJ Rental Property Rules: Source-of-Income Discrimination (2026)
Key Facts
- Chapter
- 41:21, Inclusionary Zoning for Affordable Housing
- Section
- § 41:21-18(4), Tenant Income Eligibility
- Adopted
- Ord. No. 6PSF-E, effective 11-1-2023
- Scope
- Income-restricted units in Ch. 41:21 developments
- Low-income threshold
- 50% or less of median income
- Moderate-income threshold
- Below 80% of median income
- Enforced by
- City's administrative agent, § 41:21-19
Summary
Newark's inclusionary zoning code bars owners of income-restricted affordable rental units from rejecting an applicant or tenant based on their legal source of income for rent or mortgage payments, one of many protected classes listed in the city's Chapter 41:21 tenant eligibility standards.
4. No applicant or tenant shall be discriminated against on the basis of actual or perceived race, religion, national origin, nationality, ancestry, pregnancy or breastfeeding, sex, gender identity or expression, sexual orientation, familial status) defined as having care or custody of a child under age 18 or being pregnant), disability, liability for service in the Armed Forces of the United States, marital status, civil union status, domestic partnership status, criminal background or legal source of income to be used for rental or mortgage payments.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: rev 5019615; v61 updated 2026-06-17; through 06-17-2026).
Full Breakdown
Chapter 41:21, Inclusionary Zoning for Affordable Housing, was adopted by Ordinance No. C. 5:80-26. Section 41:21-18, Tenant Income Eligibility, reserves low-income units for households at or below 50% of median income and moderate-income units for households below 80% of median income, and generally caps approved rent at 35% of a household's eligible monthly income (40% for age-restricted units), with listed exceptions for households already paying more, in substandard housing, or with documented outside assistance. ' This clause applies to the income-restricted units created inside Chapter 41:21 developments and is administered by the city's administrative agent, who certifies household eligibility under § 41:21-19 rather than a separate housing discrimination office.
Violations & Fines
Chapter 41:21 does not attach an independent fine to the source-of-income clause; instead, the administrative agent under § 41:21-19 screens and certifies applicants for income-restricted units and can deny or revoke a certification obtained through improper screening criteria. A rejected applicant who believes they were screened out for their income source may raise it with the administrative agent as part of that eligibility review process described in the chapter.
Frequently Asked Questions
Does Newark's source-of-income rule cover every rental unit in the city?
What counts as 'legal source of income' under Newark's affordable housing code?
Who certifies eligibility for a Newark income-restricted rental unit?
What income limits apply alongside the nondiscrimination rule?
Sources & Official References
Other rules in Newark
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