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To: New Jersey Housing and Mortgage Finance Agency (NJHMFA)

From: Winifred Smith-Jenkins, Ed. D, Director of Early Learning for Policy and Advocacy

Date: August 21, 2025

RE: Proposed Low-Income Housing Tax Credit Qualified Allocation Plan, PRN 2025-087

Good morning, Chair and members of the New Jersey Housing and Mortgage Finance Agency. My name is Winifred Smith-Jenkins, and I serve as the Director of Early Childhood Policy and Advocacy at Advocates for Children of New Jersey. Our statewide nonprofit has spent more than 45 years working to make New Jersey a better place to grow up. Thank you for the opportunity to comment on the proposed Qualified Allocation Plan. I am here to talk about why housing policy and child care policy must be part of the same conversation — and why the decisions you make today can transform outcomes for children, parents, and entire communities.

In New Jersey, child care refers to the care and supervision of children from birth through age 13. Just as you cannot leave a 4-month-old infant at home alone, you also cannot leave a 7-year-old unattended. Children of all ages need safe, reliable environments that not only protect their well-being but also stimulate their minds and support their growth. High-quality child care provides exactly that — giving parents the peace of mind to pursue their personal and professional goals, while ensuring children are nurtured, engaged, and prepared to thrive.

Child care is not just babysitting. It is the daily work of caring for and educating young children in settings that meet state safety and quality standards, so parents can work, attend school, or train for better jobs. In New Jersey, there are two primary types: home-based care, provided by registered family child care providers serving three to five children, and center-based care, licensed programs serving six or more children in purpose-built facilities with trained staff. High-quality child care is where early brain development meets workforce stability — it is essential infrastructure for a modern economy.

The benefits are profound. Decades of research show that high-quality child care builds strong foundations for learning, social-emotional growth, and healthy development. It closes achievement gaps before they start, particularly for children from low-income households, and it pays for itself many times over. Nobel laureate economist James Heckman’s research shows a 13% annual return on investment through better education outcomes, higher earnings, and reduced costs in social services, healthcare, and the justice system. For parents, access to reliable child care is the difference between holding a steady job and cycling in and out of work. For employers, it means a dependable workforce. For communities, it is a pathway out of poverty that benefits generations.

And yet, despite its importance, New Jersey’s child care system is in crisis. We lack licensed capacity for 73% of infants and toddlers likely to need care. Forty percent of our municipalities are child care deserts. Infant care costs more than $21,000 a year — higher than tuition at many of our public colleges. This is not just a shortage; it is a market failure. It costs providers more to deliver quality care — because of low child-to-staff ratios, strict safety requirements, and the need for skilled educators — than families can afford to pay. This is where housing policy can be part of the solution. The best place for child care is close to the families it serves. When we embed child care in or near affordable housing, we remove a major barrier for parents who no longer have to juggle long commutes or multiple drop-offs. We expand the supply by creating purpose-built space in new developments. We create local jobs — child care centers employ teachers, aides, cooks, and administrators, many of whom may live in the very housing where the center is located. And we stabilize communities — children get quality early learning, parents keep steady jobs, and dollars circulate locally.

Other states have recognized this. California and the Federal Home Loan Bank of San Francisco award competitive points for projects with on-site licensed child care. These incentives don’t just create convenience — they expand the actual number of child care slots. Here in New Jersey, the current Qualified Allocation Plan acknowledges the importance of proximity to child care, awarding points for projects near licensed centers or for offering social services that could include child care. But as written, these provisions only increase competition for a limited supply; they do not create new capacity.

We can do better. I urge NJHMFA to adopt two targeted changes that will have lasting impact:

1. Award three points for family-cycle developments that provide finished, licensable ground-floor space for child care — with capacity for at least two children per ten housing units, plus dedicated outdoor play space — leased at nominal cost to licensed providers.
2. Require all new two- and three-bedroom units to meet the modest additional requirements for registered family child care. This would allow residents to become licensed providers, building both capacity and income within the community.

Consider this: A mother in Burlington is raising two young children — a 6-month-old and a 2-year-old — on her own. After years of striving, she’s offered a full-time job with benefits, the kind of opportunity that could change everything. But instead of relief, she feels panic. There is no affordable child care nearby. Taking the job would mean cobbling together unreliable care arrangements with neighbors or relatives. Faced with that choice, she is ready to turn down the very opportunity she has been working toward.

Now imagine that same mother just a few months later. A new affordable housing development opens in her neighborhood — and inside that very building is a high-quality child care center. Throughout the development, registered family child care providers operate from their homes. Suddenly, everything changes. She can walk her children just steps from her apartment to safe, nurturing care. She takes the job, moves off public assistance, and begins building a career. Her children are thriving, and the cycle of opportunity has begun.

This does not have to be a fantasy. This is what happens when we connect the dots between housing and child care. We don’t just provide families with shelter — we give them stability, support, and opportunities to build a better life. We don’t just change addresses; we change futures.

That is why I urge you to strengthen the Qualified Allocation Plan by making child care part of the housing conversation and the housing solution. I also welcome the opportunity to work with NJHMFA staff to support the integration of child care into new tax-credit financed housing developments.

Housing is the foundation for stability. Child care is the bridge to opportunity. Together, they give families the security and tools to thrive. You have the power to ensure that when we build affordable housing in New Jersey, we are not just giving families a roof over their heads — we are giving them the supports they need to work, to learn, and to raise children who will succeed in school and in life.

Thank you for your time and for your leadership on behalf of New Jersey’s families.