New Jersey Tiny House Living: Laws, Costs, and Real-Life Stories

Written by: Naway Zee

Published on: October 9, 2025

The tiny house movement has captured hearts across the United States, and New Jersey—known for its mix of scenic countryside, vibrant cities, and coastal charm—is no exception. More people are trading oversized homes and hefty mortgages for tiny houses in New Jersey, where simplicity meets sustainability.

Whether it’s the lure of financial freedom, a desire for a minimalist lifestyle, or simply the joy of owning a home that reflects one’s values, the New Jersey tiny house lifestyle is quickly gaining traction. But before joining this movement, it’s crucial to understand what it really means to live small in the Garden State—from legal hurdles to cost breakdowns and where you can actually park your dream home.

In This Article

The Popularity of Tiny Houses in New Jersey

Tiny living isn’t just a passing trend—it’s a conscious shift toward intentional living. Across New Jersey, more residents are downsizing to gain control over their finances and reduce their environmental impact.

Why Tiny Houses Appeal to New Jersey Residents

  • High housing costs: New Jersey consistently ranks among the most expensive U.S. states for housing. A median single-family home often exceeds $480,000, making a tiny house (typically $40,000–$120,000) an appealing alternative.
  • Eco-conscious living: Many New Jersey residents value sustainability. Tiny homes require fewer materials and less energy, aligning perfectly with eco-friendly goals.
  • Mobility and flexibility: A tiny home on wheels allows residents to explore the state’s diverse landscapes—from the Pine Barrens to the Jersey Shore—without giving up comfort or style.

The Demographic Shift

Interestingly, the New Jersey tiny house movement isn’t just attracting young minimalists or retirees. It’s becoming popular among:

  • Young professionals priced out of the traditional housing market.
  • Families seeking backyard accessory dwelling units (ADUs) for relatives.
  • Eco-minded individuals wanting off-grid or semi-off-grid options.

“The beauty of a tiny home is not in its size, but in the freedom it offers,” says Megan R., a New Jersey resident who built her 280-square-foot home in Hunterdon County.

The growing awareness of minimalism, coupled with innovative local builders, is helping turn this lifestyle from niche to mainstream across New Jersey.

New Jersey Tiny House Laws and Regulations

Before setting your heart on a cozy tiny home, it’s essential to understand one fact: New Jersey’s laws and zoning codes can be challenging for tiny house owners. Unlike some U.S. states that have fully embraced the movement (like Maine or California), New Jersey’s legal landscape is still evolving.

Tiny houses fall into two main categories—each treated differently by New Jersey law:

TypeDescriptionLegal CategoryRegulated By
Tiny House on Wheels (THOW)Built on a trailer and movableTreated like an RVNJ Motor Vehicle Commission
Tiny House on FoundationFixed, permanent structureTreated like a traditional dwellingLocal zoning/building codes

This distinction is important because zoning and construction standards vary widely from one township to another.

  1. Minimum dwelling size requirements: Some towns require homes to be at least 1,000 sq. ft., automatically excluding many tiny homes.
  2. Zoning restrictions: Not all zones allow full-time living in an RV or tiny home.
  3. Utility and septic rules: Proper hookups or approved alternatives (like composting toilets) are often required.
  4. No statewide “tiny house” law: Regulations are handled locally, meaning each municipality sets its own rules.

The Good News

While regulations can be tough, there’s growing recognition of the housing crisis and the need for more affordable solutions. Several New Jersey towns—particularly in rural or agricultural zones—are beginning to explore Accessory Dwelling Units (ADUs) and flexible housing options.

Pro Tip: Always start by contacting the local zoning office where you plan to place your tiny house. Ask for written clarification on:

  • Minimum dwelling size
  • Permitted land uses
  • Utility connection rules
  • Whether RV-style living is allowed full-time
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This can save you costly legal headaches later.

Zoning Rules for Tiny Houses in New Jersey

When it comes to placing a tiny house in New Jersey, zoning is the biggest hurdle. The state doesn’t have a uniform rule for where these homes can go, meaning each municipality decides its own zoning and land-use policies.

Zoning determines whether your tiny house is considered a legal dwelling, an accessory structure, or even an RV. Understanding these local distinctions can make or break your project.

Where Tiny Houses Are Allowed (and Not Allowed)

Here’s a simplified look at how zoning typically applies across different parts of New Jersey:

Area TypeTiny House on FoundationTiny House on Wheels (THOW)Notes
Urban areas (e.g., Newark, Jersey City)❌ Often restricted❌ Not permitted as residenceMay allow as ADU or backyard office
Suburban zones (e.g., Princeton, Cherry Hill)⚠️ Case-by-case approval❌ Not permitted full-timeCheck for ADU ordinances
Rural & agricultural zones✅ Often more lenient⚠️ Sometimes allowedEasier to get permits with land ownership

Tip: Always check the zoning map for the specific township or county. Many rural regions—such as Warren, Sussex, and Hunterdon Counties—are more flexible about alternative housing setups.

Accessory Dwelling Units (ADUs) as a Loophole

Some residents build their tiny homes as Accessory Dwelling Units (ADUs) on an existing property. These are small secondary homes—usually 300–800 square feet—built behind or beside a primary residence.

ADUs can be a legal workaround if your municipality has adopted supportive ordinances. For instance:

  • Montclair and Princeton have begun reviewing ADU policies to help address housing shortages.
  • Homeowners can sometimes rent out their ADUs or use them as in-law suites, offering both flexibility and income potential.

“Zoning doesn’t always say ‘no’ to tiny houses—it often just requires persistence and the right classification,” explains Michael T., a zoning consultant in Bergen County.

Building Codes for Tiny Houses in New Jersey

Once zoning is cleared, the next step is ensuring your tiny house meets building code requirements. New Jersey uses the 2018 International Residential Code (IRC) with state-specific amendments. However, it hasn’t officially adopted Appendix Q, the IRC section tailored for tiny homes under 400 square feet.

That means most tiny houses are still subject to standard residential building codes, which can be challenging but not impossible to meet.

Typical Building Requirements

CategoryStandard Rule in NJTiny House Consideration
Minimum ceiling height7 feetLofts can be lower but require emergency egress
StaircasesStandard width & riseSpiral or ladder stairs may need local approval
InsulationMust meet NJ energy codeEssential due to cold winters
FoundationRequired for permanent unitsTHOWs use trailer chassis instead
UtilitiesMust meet safety codesOff-grid systems may need inspection waivers

Permanent vs. Mobile Tiny Homes

  • Tiny House on Foundation: Must comply with local building codes, setback rules, and permit requirements—just like any other small dwelling.
  • Tiny House on Wheels (THOW): Considered a recreational vehicle (RV) and must be registered with the New Jersey Motor Vehicle Commission. Full-time residence in an RV is typically not allowed outside licensed RV parks.

Safety and Energy Efficiency

New Jersey’s weather can be harsh—hot, humid summers and snowy winters—so high-quality insulation and efficient heating systems are non-negotiable. Many owners use closed-cell spray foam insulation and install mini-split HVAC units to handle both heating and cooling efficiently.

Where to Park a Tiny House in New Jersey

Finding a legal and comfortable spot to park your New Jersey tiny house can be tricky but not impossible. The right option depends on whether your home is on wheels or a foundation.

  1. Private Land (Owned or Rented)
    • If zoning allows, you can place a tiny home on your own property—especially in agricultural or low-density zones.
    • Always verify with the township’s planning board and get written approval.
  2. Backyard ADUs
    • Some municipalities allow homeowners to host a secondary dwelling, especially if used for family or rental income.
    • This setup is gaining momentum in suburban areas as local governments explore affordable housing solutions.
  3. RV Parks and Campgrounds
    • A THOW (Tiny House on Wheels) can be placed short-term in licensed RV parks.
    • Popular regions include the Jersey Shore and Northwest NJ (near the Delaware Water Gap).
    • Long-term living may require special permits.
  4. Tiny House Communities (Emerging)
    • While not yet widespread in New Jersey, some developers are planning eco-friendly pocket communities in rural counties.
    • These aim to provide shared amenities, community gardens, and a sense of belonging among tiny house owners.

How to Find Parking Opportunities

  • Use platforms like Tiny House Marketplace, LandWatch, and Craigslist (Real Estate > Land for Lease) to search for private plots.
  • Network with local Facebook groups such as Tiny House New Jersey or Garden State Minimalists for land-sharing arrangements.
  • Attend regional tiny home expos or sustainability fairs—these often connect homeowners, builders, and landowners.

Quick Tip Table: Parking at a Glance

OptionLegalityCost Range (per month)Best For
Private land (zoned residential)✅ If permitted$0–$800 (mortgage/lease)Long-term stability
Backyard ADU⚠️ Case-by-case$0–$300 utilitiesFamily or rental
RV park✅ Temporarily$400–$1,000Short stays or mobility
Community (future options)🚧 DevelopingTBDShared living

“The hardest part isn’t building the tiny house—it’s finding a legal place to put it,” says Laura P., a Sussex County tiny homeowner who leases land on a small farm.

Cost of Building or Buying a Tiny House in New Jersey

One of the most appealing aspects of the New Jersey tiny house lifestyle is affordability. In a state where traditional homes often exceed half a million dollars, a well-built tiny home can be a financial game-changer. However, the cost can vary widely depending on design, materials, and whether you build it yourself or hire a professional builder.

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Typical Tiny House Costs in New Jersey

TypeSize (sq. ft.)Average Cost Range (USD)Notes
DIY Build (on wheels)150–250$30,000–$60,000Depends on skill, materials, and reused items
Professionally Built (on wheels)200–350$70,000–$120,000Custom finishes increase costs
Foundation Tiny House250–500$90,000–$160,000Includes permits and site prep
Luxury or High-End Model300–400$130,000–$200,000Premium materials and smart features

These prices are only for the house itself. Additional expenses can include:

  • Land: Rural land in New Jersey averages $10,000–$50,000 per acre depending on location.
  • Permits and fees: Range from $1,000–$10,000 depending on local regulations.
  • Utility connections: Can cost $3,000–$8,000 if you connect to water, electricity, and sewer.
  • Insurance: Expect around $500–$1,200 annually, depending on the type of home.

Financing a New Jersey Tiny House

Because tiny homes are still unconventional in traditional banking systems, financing options can be limited. However, there are several realistic paths:

  • Personal or RV loans – Ideal for THOWs; lenders like LightStream or Liberty Bank cater to alternative dwellings.
  • Construction loans – For foundation-based homes, some local credit unions may offer flexible terms.
  • Builder financing – Certain tiny home companies partner with financing services.

“We decided to build our 300 sq. ft. home ourselves, and it came to about $55,000—fully solar-powered and mortgage-free,” says Andrew D., a tiny homeowner from South Jersey.

Cost-Saving Tips

  • Use salvaged or reclaimed materials from renovation stores.
  • Design multi-functional furniture (e.g., foldable tables, convertible beds).
  • Keep plumbing close together to reduce installation costs.
  • Opt for solar energy and rainwater systems to cut utility bills.

New Jersey Tiny House Builders and Companies

Whether you’re dreaming of a rustic cabin, a sleek modern studio, or a mobile cottage, several New Jersey tiny house builders specialize in crafting small yet stunning dwellings. Working with local experts ensures your design complies with state codes and withstands local weather conditions.

Top Tiny House Builders in New Jersey

Builder NameLocationSpecialtyApprox. Price Range
Tiny Hamptons HomesManalapan, NJCustom luxury THOWs with coastal designs$80,000–$150,000
B&B Tiny Houses (Regional)Works across NJ & NYEnergy-efficient builds, modern design$70,000–$120,000
New Frontier DesignServes NJ clientsPremium, architectural-style homes$120,000+
DIY Tiny House Workshops NJVarious citiesTraining + self-build kits$15,000–$40,000 (materials)

How to Choose the Right Builder

  1. Check past projects – Visit or request photos/videos of completed homes.
  2. Ask about code compliance – Especially for local weather and insulation needs.
  3. Clarify warranty terms – Reputable builders offer at least a one-year warranty on structure and systems.
  4. Consider customization options – Many builders let you modify layout, finishes, and appliances.

Custom vs. Prefab

  • Custom builds allow you to personalize layout and materials—great for permanent dwellings.
  • Prefabricated models are quicker and cheaper but may have limited customization.

“Tiny living doesn’t mean compromise—it’s about smart design and quality materials,” says Brian R., owner of Tiny Hamptons Homes.

Tiny House Communities in New Jersey

While tiny house communities are still in their infancy in New Jersey, momentum is building. With rising housing costs and growing sustainability awareness, several counties are exploring zoning adjustments to welcome clustered small-home living.

Are There Any Tiny House Communities Yet?

Currently, there are no fully established large-scale communities, but several micro-developments and private land-sharing initiatives exist, particularly in:

  • Sussex County: Small rural lots allowing grouped tiny homes for eco-conscious residents.
  • Hunterdon County: Private landowners leasing space for tiny houses under agricultural zoning.
  • Ocean County: A few experimental ADU-friendly zones near the coast.

Planned or Proposed Tiny House Villages

Some New Jersey developers have proposed eco-villages and co-housing projects designed around sustainable living:

  • “Tiny Green Haven” (concept proposal) – aims to build an off-grid community with shared gardens and renewable energy in South Jersey.
  • “Garden State EcoVillage” – in planning stages near the Princeton area, focusing on cooperative housing and permaculture.

Benefits of Living in a Tiny House Community

  • Shared maintenance costs and resources
  • Sense of belonging and collaboration
  • Access to communal gardens or workshops
  • Easier zoning approval under collective projects
Community FeatureIndividual SetupTiny House Village Setup
Land OwnershipOwner or renterShared or cooperative
UtilitiesPrivate or off-gridCentralized systems
Community RulesSelf-managedShared guidelines
Cost EfficiencyModerateHigh (shared expenses)

The Road Ahead

As New Jersey faces affordable housing shortages, tiny house villages could become part of the solution. Several towns are watching states like Oregon and Colorado, where similar projects have helped provide affordable and eco-friendly housing.

“Tiny house communities are the future of sustainable living—New Jersey just needs to open the legal door,” says urban planner Lisa M. from Trenton.

Best Places to Live in a Tiny House in New Jersey

Choosing where to place your tiny house in New Jersey depends on zoning flexibility, affordability, and lifestyle preferences. From peaceful countryside retreats to coastal escapes, the Garden State offers diverse environments that fit nearly every vision of small living.

Top Tiny House-Friendly Areas

RegionWhy It’s Great for Tiny HousesAverage Land Cost (per acre)Zoning Flexibility
Sussex County (Northwest NJ)Rural, scenic, fewer zoning restrictions$10,000–$30,000✅ Moderate to High
Hunterdon CountyGreen farmland, eco-minded community$20,000–$40,000✅ Good (esp. agricultural zones)
Ocean County (Shore Area)Beach proximity, mild climate$40,000–$70,000⚠️ Variable
Salem County (South NJ)Affordable land, off-grid potential$8,000–$25,000✅ Excellent
Warren CountySpacious plots, open-minded zoning boards$15,000–$35,000✅ Moderate

North Jersey: Scenic and Secluded

Areas near High Point State Park and Stokes Forest attract off-grid enthusiasts who crave privacy and nature. These rural zones often have relaxed size restrictions, making them ideal for THOWs (Tiny Houses on Wheels).

Central Jersey: Balanced and Accessible

Places like Princeton and Hopewell Township combine accessibility with a push toward sustainability. Some homeowners here are experimenting with ADUs as long-term housing options for relatives or renters.

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South Jersey: Affordable and Open-Minded

Counties like Salem, Cumberland, and Cape May are increasingly welcoming to alternative housing. With lower land costs and agricultural zoning, these areas are perfect for those who dream of combining tiny living with homesteading.

“We found our dream spot in Salem County — 2 acres, solar panels, a garden, and space for our 320 sq. ft. home,” shares Erin P., a tiny house owner and remote worker.

Sustainable Living and Off-Grid Options in New Jersey

New Jersey’s climate and policies offer great opportunities for sustainable and off-grid tiny living. Whether you want to reduce your carbon footprint or live independently from utilities, there are practical solutions available.

Eco-Friendly Power and Water Systems

SystemHow It WorksAverage Installation Cost (USD)New Jersey Suitability
Solar PanelsGenerates electricity from sunlight$10,000–$18,000☀️ Excellent (NJ ranks high for solar potential)
Rainwater HarvestingCollects and filters rain for use$2,000–$5,000💧 Moderate (supplemental use)
Composting ToiletsConverts waste into compost$1,000–$2,500🌿 Legal if approved system used
Greywater SystemsReuses sink and shower water$1,500–$4,000⚙️ Requires local health approval

State Incentives and Green Programs

New Jersey actively promotes clean energy adoption:

  • NJ Clean Energy Program – offers rebates for solar, insulation, and HVAC upgrades.
  • Renewable Energy Tax Credits – available for homeowners installing certified systems.
  • Net Metering Policy – lets solar users sell excess power back to the grid.

Off-Grid Challenges

While off-grid living is possible, expect extra steps:

  • Permits may be required for non-traditional systems.
  • You must still meet health and safety codes.
  • Some townships may require proof of utility alternatives.

“Our off-grid setup in Warren County saves us over $200 per month. It took patience with permits, but it was worth the independence,” says Dan C., who powers his 240 sq. ft. solar home entirely off-grid.

Sustainable Lifestyle Tips

  • Use LED lighting and low-flow plumbing fixtures.
  • Grow food in raised garden beds or vertical gardens.
  • Choose non-toxic building materials like bamboo, cork, and reclaimed wood.
  • Integrate rainwater reuse for landscaping.

Challenges of Living in a New Jersey Tiny House

Tiny living may sound idyllic, but real-life experiences show it comes with both rewards and realities. Understanding these challenges can help you prepare for success.

1. Navigating Bureaucracy

The biggest obstacle remains zoning and code enforcement. Many towns lack official policies for tiny houses, forcing owners to advocate for themselves or seek exceptions.

Tip: Document everything—permits, inspections, and communication with local boards. Being transparent often makes officials more cooperative.

2. Weather and Climate Considerations

New Jersey’s four-season climate means tiny homes must be built with durability in mind:

  • Winter: Proper insulation, heated water lines, and skirting around THOWs are essential.
  • Summer: Ventilation, air conditioning, and reflective roofing reduce humidity and heat.
  • Storms: Coastal areas face high winds, requiring anchoring systems for THOWs.

3. Space and Storage

A 200–300 sq. ft. home requires careful planning. Multi-purpose furniture and vertical storage solutions are vital for comfort and organization.

Popular space-saving hacks:

  • Murphy beds with storage underneath
  • Foldable kitchen tables
  • Loft bedrooms
  • Magnetic wall racks and hanging baskets

4. Utility Access

In remote or off-grid areas, utility setup can be tricky. Plan for:

  • Composting or incinerating toilets
  • Portable water storage or wells
  • Propane or solar-powered heating

5. HOA and Neighborhood Restrictions

Even if zoning allows tiny houses, homeowners’ associations (HOAs) may prohibit them due to aesthetic rules or size minimums. Always review HOA bylaws before purchasing land.

“We loved our tiny home but had to move twice due to local restrictions. Finding a supportive township made all the difference,” shares Kelly M., a Monmouth County resident.

6. Social Perception

While acceptance is growing, some communities still see tiny homes as “temporary” or “unconventional.” Joining local tiny house groups and educating neighbors can foster understanding and support.

Real-Life Examples of New Jersey Tiny Houses

While zoning and regulations can be complicated, several New Jersey tiny house owners have found creative ways to make small-space living work beautifully. Their stories show how determination and innovation can overcome legal and practical challenges.

Case Study 1: The Hunterdon County Homestead

  • Home Type: 320 sq. ft. custom-built tiny house on foundation
  • Owner: Megan R., 34, environmental consultant
  • Setup: Built on a half-acre plot zoned for accessory dwellings
  • Cost: Approx. $95,000 including land
  • Highlights: Solar panels, rainwater collection system, reclaimed wood interior

“We wanted to live sustainably without leaving New Jersey. It took months of zoning paperwork, but now our tiny house runs almost entirely on solar power.”

This example shows that foundation-based tiny houses can thrive in agricultural or rural zones with proper planning and local approval.

Case Study 2: The Mobile Coastal Retreat

  • Location: Ocean County, NJ
  • Home Type: 240 sq. ft. THOW (Tiny House on Wheels)
  • Owner: Dan & Laura P.
  • Cost: $65,000
  • Lifestyle: Full-time mobile living, parking at seasonal campgrounds and private lots
  • Features: Off-grid solar setup, composting toilet, and mini-split AC system

“We spend summers near the Jersey Shore and winters inland. It’s the freedom of travel without giving up home comfort.”

Their lifestyle demonstrates how mobility and minimalism combine perfectly in New Jersey’s diverse landscapes—coastal summers and forested retreats are both within a short drive.

Case Study 3: Backyard ADU in Princeton

  • Home Type: 280 sq. ft. backyard cottage
  • Owner: Retired couple hosting their daughter
  • Purpose: Affordable independent living close to family
  • Legal Status: Approved as an ADU under residential zoning
  • Cost: $110,000 (turnkey build)

“Our tiny backyard cottage keeps family close without losing privacy. It’s proof that ADUs can solve real housing needs.”

This example shows how Accessory Dwelling Units (ADUs) are becoming a viable model for multi-generational living in suburban parts of New Jersey.

How to Get Started with a Tiny House in New Jersey

If you’re ready to embrace the New Jersey tiny house lifestyle, proper planning will save you time, money, and frustration. Here’s a clear roadmap for turning your small-home dream into reality.

Step-by-Step Guide

  1. Research Local Zoning Laws
    • Contact your township’s zoning office.
    • Ask if ADUs or small dwellings are permitted in your zone.
    • Request written clarification to avoid future disputes.
  2. Choose Your Tiny House Type
    • Decide between THOW (mobile) or foundation-based.
    • Evaluate your mobility needs, budget, and long-term goals.
  3. Secure Land or Parking
    • Look for rural lots or cooperative land-sharing arrangements.
    • If renting land, get a written lease agreement outlining responsibilities.
  4. Design and Build
    • Work with a certified builder familiar with New Jersey codes.
    • Focus on high-quality insulation, plumbing, and safety features.
    • Consider future resale value—tiny homes built to code hold better long-term worth.
  5. Get Proper Permits and Inspections
    • Submit your site plan and blueprints for approval.
    • Schedule inspections for electrical, plumbing, and structure.
  6. Plan for Utilities
    • Explore off-grid options or request utility connections from your local provider.
    • New Jersey’s energy rebate programs can help reduce setup costs.
  7. Insure and Register
    • Foundation homes: homeowner’s or mobile home insurance.
    • THOWs: RV insurance with comprehensive coverage.
  8. Join a Community
    • Connect with others through Tiny House New Jersey Facebook groups or local meetups.
    • Collaboration often leads to shared land opportunities and zoning support.

Useful Resources

ResourceWebsite / ContactPurpose
NJ Department of Community Affairsnj.gov/dcaBuilding & zoning regulations
NJ Clean Energy Programnjcleanenergy.comEnergy efficiency rebates
Tiny House Listingstinyhouselistings.comBuy or sell tiny homes
Tiny House Community NJFacebook GroupLocal support & updates

The Future of Tiny Houses in New Jersey

The future of tiny houses in New Jersey is bright but still unfolding. Rising property prices and a growing need for affordable housing are pushing policymakers to reconsider zoning laws. Municipalities like Montclair, Princeton, and Asbury Park are already reviewing Accessory Dwelling Unit ordinances, signaling a shift toward inclusivity for small homes.

  • Eco-villages: Cooperative communities emphasizing green design and renewable energy.
  • Municipal pilot projects: Towns testing small-home zoning districts to combat housing shortages.
  • ADU expansion: Suburban areas adopting backyard dwelling regulations for affordability and family housing.

A Promising Outlook

As sustainability becomes mainstream, tiny homes are redefining what it means to live comfortably and responsibly in New Jersey. With continued advocacy and smart local policies, it’s likely that the next decade will see tiny homes transition from novelty to norm.

“Tiny houses aren’t just smaller homes—they’re a movement toward freedom, sustainability, and conscious living,” says Lisa M., an urban planner from Trenton.

Conclusion: Living Big by Going Small

Living in a New Jersey tiny house means embracing simplicity, sustainability, and smart design. While the legal landscape can be complex, it’s gradually opening up as more residents seek affordable and eco-friendly lifestyles.

From the rolling farmlands of Hunterdon County to the coastal edges of Ocean County, New Jersey offers countless opportunities for those ready to live more with less. The journey may take research and patience, but the reward—a life of freedom, purpose, and connection—is well worth it.

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