How a century-old Austrian strategy is inspiring Hudson County’s new housing plan

County officials hope to break ground next summer on a development that would transform parking lots near Journal Square into a mixed-income neighborhood.

Hudson County plans to build a publicly owned housing development on county-owned land in Jersey City as part of a new approach to addressing the housing crisis.

County officials plan to build more than 1,000 apartments on land surrounding Hudson County Plaza, a government office complex a short walk from the Journal Square PATH station. Inspired by Vienna, Austria’s social housing model, the development would serve residents across a range of incomes.

Hudson County Executive Craig Guy discussed the project Wednesday at a roundtable featuring U.S. Sen. Andy Kim, Rep. Rob Menendez, Jersey City Mayor James Solomon, Hoboken Mayor Emily Jabbour and six experts from the governor’s office, nonprofits and the housing development industry.

“What we’re doing here in Hudson County should be and will be a model for not only New Jersey but for the country,” said Guy.

The proposal comes as many Hudson County residents struggle with rising housing costs. More than 85,000 households in the county, or 44%, spend over 30% of their income on rent, according to a 2024 Rutgers University report.

The development would transform the parking lots and other underused land surrounding the county offices at 257 Cornelison Ave. into a housing and mixed-use development. The larger redevelopment study area covers nearly 17 acres.

County officials envision a multi-purpose development with public amenities and businesses, including a supermarket, day care, community center, workforce training facility, parks, retail stores, and restaurants.

“You see not just another building or two, but you see a real neighborhood coming together that’s embedded within this broader community,” said Kim. “That’s ultimately what we want: Something of, by, and for the community here.”

The Geraldine R. Dodge Foundation provided a loan of more than $500,000 to cover early planning costs. The foundation offers grants and other financial support to initiatives addressing the racial wealth gap in New Jersey cities.

With the early planning work complete, the county is seeking additional financing to supplement its own funding for the development.

In September, the Jersey City Planning Board recommended that the City Council designate the area surrounding Hudson County Plaza as an area in need of redevelopment. The designation would allow the city to establish a redevelopment plan for the property.

Bill Matsikoudis, general counsel for the Hudson County Improvement Authority, hopes to secure zoning approval by the end of the year.

Studio V Architecture founder Jay Valgora, who is working on the project, said construction would take about two years. Officials hope to break ground for the project before July 4, 2027.

The project will cost hundreds of millions of dollars, Matsikoudis estimated. The exact cost will become clearer as financing is secured and building plans are finalized.

Unlike conventional developments built by private developers, the county’s social housing approach would allow planners to prioritize residents’ needs rather than maximum profitability. For example, the county plans to build more three-bedroom apartments suitable for families than a private developer likely would.

The county would own the apartments and offer long-term housing to residents across a range of incomes, including households that qualify for affordable housing and those paying market-rate rents.

Matsikoudis said the county is considering reserving 15% to 20% of the apartments for people earning 30% or less of the median income for the region.

Under 2026 federal housing income limits for Jersey City, that would mean annual incomes of about $31,000 or less for a single person and $44,000 or less for a family of four.

Matsikoudis traveled to Austria to learn about the social housing model in Vienna, where publicly owned and subsidized apartments accommodate residents across a wide range of incomes.

“In Vienna, Austria, you have people from across the economic spectrum, and the concept is basically that it’s enriching for everyone to not have economic segregation, but to have incomes of all strata living in the same community,” he said. “The higher-income people that live there help subsidize the affordable rents that are obviously capped for lower-income people to live there.”

Vienna’s approach dates to the 1920s, when the city began a major public housing construction program financed in part by a dedicated housing tax. Rather than relying primarily on private developers, the city built thousands of apartments that would remain under public ownership.

Vienna’s system serves lower-income and middle-income households. Applicants must meet income and residency requirements, but the income limits are relatively high. In 2026, a single person earning up to 61,280 euros ($68,700), or about 91,320 euros ($102,300) for a two-person household, qualifies for subsidized housing.

Today, Vienna has about 220,000 city-owned apartments and another 200,000 subsidized apartments operated by nonprofit or limited-profit housing organizations, according to the Vienna city government. About 42% of Vienna’s housing units are part of its social housing system. A majority of Vienna’s renters live in social housing.

A June 2025 report from the Climate and Community Institute found that Vienna has the lowest average rents among major Western European cities, largely because of its social housing system and rent regulations.

At the roundtable discussion Wednesday, officials also highlighted efforts at the state and federal levels to address the housing crisis.

Kim and Menendez discussed their work on the 21st Century ROAD to Housing Act, which became law July 11 without President Donald Trump’s signature.

The sprawling legislation passed with bipartisan support. It includes measures to speed up lengthy environmental review processes, changes to financing rules to make it easier to fund housing, and a grant program to encourage local governments to adopt housing-friendly zoning laws. The grant program is unfunded, but Congress could provide funding in future budgets.

“Hopefully we’ll be able to have that follow through as we get towards the appropriations and budget process this year,” said Kim. “But I want to make sure all of this is fully funded, because what use is a law if we’re not going to back it up with the resources needed to implement it.”

Gov. Mikie Sherrill recently unveiled her own housing affordability plan, which would double planned development on state-owned land to 40,000 homes, establish deadlines for permit decisions and make it easier to apply for affordable housing.

Guy is already considering other opportunities to develop social housing in Hudson County. He pointed to county-owned property near the intersection of Newark and Baldwin avenues.

“We have three or four sites that we have on our radar, and some of those sites already have some initial plans going forward,” said Guy. “But this site [near County Plaza] is ready to roll.”