To Trial? ‘Affordable’ Settlement Comes Down to the Wire

The Sony Electronics campus: Owner Hornrock Properties is approved for 185 housing units on the Montvale section of the 37-acre campus (rendering, inset). Will Hornrock be permitted to build 972 more units in the Park Ridge section?

PARK RIDGE, N.J.—The day of judgment has arrived for Park Ridge.

State Superior Court Judge Gregg Padovano, who for almost four years has been overseeing the borough’s efforts to settle its affordable housing obligations, said July 15 was the deadline for the parties to come to terms on their own.

He’s said unless the borough and Fair Share Housing Center settle on affordable housing obligations by that date’s case conference—2 p.m. in Room 331 at the Bergen County Justice Center—the case could go to trial.

As of Friday, July 12 at press time, no settlement plan had been announced.

The sticking point has been over the methodology for calculating those obligations.

Intervenor Hornrock Properties has proposed building 972 units with 20% affordable set-aside on about 30 acres of a former Sony property in Park Ridge.

Meanwhile, Park Ridge has spent hundreds of thousands of dollars on legal fees challenging Hornrock’s contention that they need to build “inclusionary housing” on the 30 acres to help Park Ridge satisfy its “unmet need” of affordable housing. 

Park Ridge contends unmet need is aspirational and not required while the borough’s realistic development potential, or RDP, of 81 units is more than satisfied by a newly proposed 50-unit, 100% affordable complex planned near a site adjacent to Bear’s Nest townhomes.

In its original plan, the site included a 31-unit, 100% affordable complex.

Neither Padovano nor Park Ridge Special Counsel Scott Reynolds has expressed much interest in seeing the matter go to trial over methodology, citing the time and cost to the municipality.  

As well, both have lamented the outcomes of a few such cases that have gone to trial—all coming down heavily in favor of Fair Share Housing Center.  

Even if Park Ridge and Fair Share agree to settle, Hornrock still could challenge the deal: Park Ridge has not included Hornrock in its separate settlement talks with Fair Share Housing Center.

Since submitting its original affordable housing plan in March 2018, Park Ridge and Hornrock Properties have challenged each other’s positions. 

Park Ridge has requested documents from Hornrock attempting to indicate Honrock’s lack of interest in the former Sony property as an office complex in an area zoned only for office use only—not residential development. 

Many prior case conferences and depositions of witnesses by both sides have focused on legal technicalities and minutiae and arguments over witness statements and factual inconsistencies.

To fulfill its 81-unit RDP obligation, the initial plan said 60 units from group homes, inclusionary rental developments, and a 100% affordable housing development at Bear’s Nest.  

The additional units were accounted for using 21 bonus credits awarded to Park Ridge.

The plan also detailed affordable housing sites including Woodland Garden/Lehmann Gardens; Quail Run; 70–72 Park Ave. (the Krell Building); 26 Hawthorne Ave. (Park Ridge Properties); CarePlus NJ Group Home; Everas Community Services Group Home; New Concepts for Living Group Home; Ridge Manor; Hawthorne Terrace; PRAH Associates LLC;  Park Ridge Transit LLC; and Bear’s Nest.

The plan noted the difference between the borough affordable housing obligation—established by Ecoconsult—and its RDP number is its “unmet need” of 208 units. 

“Whereas the RDP obligation must be affirmatively addressed by the borough, unmet need is more aspirational,” the borough’s plan said.

On July 5, Mayor Keith Misciagna said Park Ridge has been trying to work with Hornrock Properties and was very close to settling with Fair Share Housing Center. 

He said he was unsure if a settlement could be reached by July 15. He said the affordable plan has satisfied all its obligations through 2025 and hoped for a successful settlement soon.

Fair Share Housing Center was appointed by the state Supreme Court to advocate for affordable housing when the court declared the former Council on Affordable Housing (COAH) defunct due to 16 years of inactivity (1999–2015) from legal challenges and political inertia. 

In 2015, the state Supreme Court assigned local affordable housing obligations to superior courts.