WOODCLIFF LAKE—Borough Council on Dec. 16, 2024 threw unanimous support to a resolution backing a proposed statewide legislative effort to reduce affordable housing obligations by up to 80%. The push centers on a new “realistic” methodology developed by the New Jersey Institute of Local Government Attorneys (NJILGA), which uses local building data to calculate housing needs.
The proposed formula uses 10 years of local certificates of occupancy (COs) issued, dividing that number by five to determine each municipality’s affordable housing obligation. Supporters say this method better reflects market realities than the current system tied to “household change.”
The proposed legislation states, “The ‘prospective need’ methodology that has been established for the fourth round and all future rounds of housing obligations in the 2024 amendment of the Fair Housing Act (FHA) will not result in realistic regional and municipal affordable housing obligations, but rather will result in excessive and unrealistic affordable housing obligations, because the new methodology is not based on objective housing market data that can be clearly understood and easily quantified.”
It continues, “This bill amends the methodology so that it will be based on objective, readily obtainable, and highly relevant market data: the number of certificates of occupancy issued for new residential housing units in each of New Jersey’s six affordable housing regions during the act’s specified census-based periods. This new methodology, being thus firmly rooted in the realities of market demand and supply, will result in realistic regional and municipal fair share obligations throughout the State.”
If introduced and passed, the new formula could reduce Woodcliff Lake’s fourth-round obligation—from 423 units to 90 units—when the round begins on July 1, 2025, through June 30, 2035. Of the eight Pascack Valley towns, Woodcliff Lake currently has the highest fourth-round obligation.
Impact on Pascack Valley Towns
If adopted, the proposed formula would dramatically lower fourth-round obligations across the region:
- Emerson: 181 to 37 units
- Hillsdale: 220 to 45 units
- Montvale: 348 to 71 units
- Park Ridge: 138 to 28 units
- River Vale: 195 to 40 units
- Washington Township: 184 to 38 units
- Westwood: 235 to 48 units
In Their Own Words
The proposal has drawn sharp criticism from housing advocates, including Adam Gordon, executive director of the Fair Share Housing Center. He said:
“Anyone who looks at the housing crisis facing New Jersey today and thinks the solution is to reduce the amount of housing we need by 80 percent is out of touch with the lived reality of New Jersey families and communities. This proposal is a recipe for making New Jersey an exclusive enclave that only the ultra-wealthy can afford. That’s not the future that the vast majority of New Jerseyans want for our state.”
Supporters of the legislation argue that it aligns obligations with market realities. Attorney Jeff Surenian, an expert in Mount Laurel law, said:
“Affordable housing is a good thing, but it must be tethered to reality. In March (2024) we missed an opportunity to pause and reassess where affordable housing is,” Surenian said. He added, “The Fair Housing Act, initially passed in 1985 by a bipartisan state Legislature, required a correction, and this (proposed) legislation is that correction.”
Surenian estimates that nearly 50 towns, including Bogota, Haworth, Midland Park, Ramsey, River Edge, and Upper Saddle River, have passed resolutions supporting the proposal.
Legal and Legislative Developments
Meanwhile, the Local Leaders for Responsible Planning (LLRP), led by Montvale Mayor Mike Ghassali, continues its 28-town lawsuit against the state’s fourth-round affordable housing obligations. A Mercer County Superior Court judge recently denied a stay of the deadlines while the case is pending. Oral arguments on motions to dismiss the lawsuit are scheduled for Jan. 31 before Mercer County Superior Court Judge Robert Lougy.
Woodcliff Lake’s resolution highlighted the state Supreme Court’s position on legislative authority in these matters, stating:
“Whereas our Supreme Court has emphasized that the issue of affordable housing is best left for the Legislature in that courts are ill-equipped to deal with these issues and hence pledge to show great deference to the pronouncements of the Legislature, and this pledge for deference bodes well for any redefinition of the obligation, particularly one rooted in reality and designed to ensure that as municipalities grow with market housing, they grow with affordable housing.”
It continues: “And for the above reasons, the Mayor and Council of the Borough of Woodcliff Lake has determined that the Borough of Woodcliff Lake’s prospective need, and the prospective need for all New Jersey municipalities for the fourth round and all future rounds of affordable housing obligations, should be calculated using NJILGA’s proposed certificate of occupancy-based methodology rather than the current FHA methodology based on ‘household change,’ and that NJILGA’s proposed FHA amendment should be enacted by the New Jersey legislature as soon as possible.”
Next Steps
The borough’s resolution will be forwarded to District 39 representatives Senator Holly Schepisi and Assembly members Robert Auth and John Azzariti. Schepisi, a consistent advocate for pausing housing mandates, has opposed the high-density multifamily housing often required to meet current obligations.
NJILGA President Steve Goodell said on Jan. 3 that at least 43 towns had passed resolutions of support, but emphasized:
“We are not seeking a sponsor for the legislation as that is not our function. We advise a host of municipal clients with many viewpoints, and as such, we do not become involved in the political process. The legislation has been offered as a defensible option, but its movement through the legislature is up to the interested municipalities and policymakers.”
For now, municipalities must comply with existing obligations but could revise their commitments if the legislation passes. Surenian noted, “Towns should continue to meet affordable deadlines, and currently cannot use the methodology used in the proposed legislation. Should the legislation become law, municipalities can reserve the right to take advantage of it.”