Listen to this article

Following a Jan. 31 deadline, 431 New Jersey towns adopted resolutions to take part in the state’s affordable housing planning process.

The milestone, announced Feb. 3 by Fair Share Housing Center, represents a majority of New Jersey’s 564 municipalities. However, those opposed to the plan represent a vocal minority.

In January, Mercer County Superior Court Judge Robert Lougy rejected two attempts to delay implementation of the landmark affordable housing legislation, which became law in March. Fair Share Housing Center is a defendant in the case.

Compared to the last round of affordable housing obligations in 2015, Fair Share Housing Center said the latest tally of participants for Round 4 marks an approximately 25% increase in participation.

Calculations for the number of affordable homes each municipality must create over the next 10 years came out in October. Towns had until the Jan. 31 deadline to either accept or challenge the math. If the latter, towns must provide their own calculation, consistent with state law, through the state’s new Affordable Housing Dispute Resolution Program.

Looking ahead

Those looking to challenge the Department of Community Affairs’ assessment have until Feb. 28.

If a municipality missed the Jan. 31 deadline, it lost immunity from exclusionary zoning litigation, according to RedevelopNJ. The blog from Sills Cummis & Gross added that status persists until the municipality is determined to be in compliance with the Fair Housing Act and the Mount Laurel doctrine.

Decisions regarding challenges must come no later than March 31. If there is no challenge, municipalities can move forward with the number it filed.

RedevelopNJ explained that challenges to a municipality’s prospective-need obligation will require more justification beyond stating that the reduction is too large.

“For example, an interested party challenging the obligation may be required to submit a planner’s report proving that the municipality’s planner’s land capacity factor was calculated incorrectly,” wrote Adam Faiella, member of the Sills Cummis Real Estate Department.

Municipalities have until June 30 to adopt Municipal Housing Elements and Fair Share Plans.

“It’s encouraging that the vast majority of municipalities, many of whom supported the new law’s passage, are moving forward with creating homes under the new law,” said Adam Gordon, executive director of Fair Share Housing Center. “In the midst of a deep housing crisis, New Jersey’s new affordable housing law creates a win-win situation by giving municipal leaders tools to plan in the best way for their communities. It’s a chance to help hard-working families live closer to jobs and schools, while prioritizing equitable redevelopment to foster resilient communities for generations to come.”

The fourth round of affordable housing obligations from DCA calls for approximately 150,000 units to address present and prospective needs.

According RedevelopNJ, so far, municipalities that adopted binding resolutions have reduced their prospective-need obligations by more than 13,000 units.

Pushing back

The 27 municipalities that sued the state regarding the Fourth Round affordable housing law organized under the banner Local Leaders for Responsible Planning. Launched in September, Montvale in Bergen County leads the coalition.

“This is about standing up for all New Jersey communities,” Montvale Mayor Mike Ghassali said at the time. “We all want safe, welcoming, and vibrant neighborhoods, but the new Fourth Round mandates from Trenton go too far and will place unnecessary strain on our towns without providing any resources to make it work. Our priority is to fight so that local elected officials have the power to ensure our towns grow in a responsible manner, which this law prevents.”

Following a Jan. 2 ruling, the group’s second request for a motion to stay implementation of the new affordable housing law failed again Jan. 27.

That day, FSHC said the court also postponed a scheduled Jan. 31 hearing on whether to dismiss the lawsuit. The updated date of May 9 could change again, the court noted.

“That’s the formula. We have moral obligation to litigate this flawed approach to the Supreme Court, even if it takes us time to get there,” Ghassali said in a Jan. 15 statement from the group.

According to documentation from Sills Cummis, Montvale filed for a 172-unit reduction in prospective need from DCA’s projected necessary 348 units.

In sharing its adopted resolution online, the Borough of Montvale noted it would also be attached to a declaratory relief lawsuit filed Jan. 29.

Ghassali did not immediately return a request for comment.

Local Leaders for Responsible Planning coalition members include:

Borough of Montvale, Township of Denville, Borough of Florham Park, Borough of Hillsdale, Township of Mannington, Township Of Millburn, Township of Montville, Borough of Old Tappan, Borough of Totowa, Borough of Allendale, Borough of Westwood, Township of Hanover, Township of Wyckoff, Borough of Wharton, Borough of Mendham, Borough of Oradell, Borough of Closter, Township of West Amwell, Township of Washington, Borough of Norwood, Township of Parsippany-troy Hills, Borough of Franklin Lakes, Township of Cedar Grove, Township of East Hanover, Township of Holmdel, Township of Wall, Township of Little Falls