MONTVALE—A day after Montvale and its “Local Leaders for Responsible Planning” coalition lost a second bid to stay New Jersey’s affordable housing law, Mayor Michael Ghassali wrote residents to advise that on Tuesday, Jan. 28 at 7:30 p.m. the Borough Council will consider a “Resolution of the Borough of Montvale Committing to Round 4 Present and Prospective Need Affordable Housing Obligations.”
The meeting calendar is posted here.
Ghassali said, “Pursuant to the deeply-flawed law passed in Trenton last year, the Borough is required to adopt this resolution by Jan. 31 or we risk losing our immunity from builder’s remedy lawsuits. Nothing about this resolution weakens our resolve to fight to overturn those aspects of the law that do not comply with the Constitution and the spirit and intent of the Mount Laurel Doctrine.”
He said, “The DCA issued advisory calculations back in October and estimated Montvale’s new construction quota to be 348 new affordable units from 2025 through 2035. If this were satisfied with inclusionary development with a 20% set-aside, it would require the construction of 1,740 new high-density units to be built. This is entirely inconsistent with our community’s character and far beyond the capacity of our infrastructure to absorb.”
“However, the good news is that the DCA’s estimate was non-binding, and the law specially allows towns to adjust their obligations based on more accurate data. That is exactly what we have done. Our borough planner identified significant errors in the DCA’s mapping of Montvale’s ‘land capacity,’ which, when corrected, reduced the borough’s land capacity factor by nearly 37 acres – a 98% reduction,” said the mayor.
He added, “With this more accurate data included, we believe that the Borough’s new construction quota for Round 4 should be no more than 176 units. Still a large number, but basically half of the DCA’s initial estimate. Furthermore, we will be seeking a further vacant land adjustment based on the lack of available, suitable and developable land in the borough.”
The borough’s goal, said Ghassali, is to “reach a new construction quota that is achievable. We are also actively working with our borough planner and outside consultants to develop concept plans that will allow us to satisfy our Fourth Round obligation with minimal impact to our residents. We will be able to prove and bring the obligation number to a much lower number.”
Ghassali said, “It is important that we continue to comply with the law, even as we challenge aspects of it that are fundamentally unfair and inconsistent with the new growth patterns in this state. The borough’s adopted resolution will be submitted to the program, and interested parties, such as developers and special interest groups, will have until Feb. 28 to challenge the borough’s calculation of its Fourth Round obligation. The program is intended to resolve any disputes by the end of March. We will continue to update you as our case makes its way through the program.”
Judge not swayed, again
Mercer County Superior Court Judge Robert T. Lougy on Monday, Jan. 27 denied plaintiffs’ second request to stay New Jersey’s affordable housing law, marking the fifth judicial rejection of attempts to block the legislation. The lawsuit, led by Montvale and Ghassali on behalf of nearly 30 municipalities under the banner Local Leaders for Responsible Planning (LLRP), has been criticized by the nonprofit Fair Share Housing Center (FSHC) as representing “wealthy, historically exclusionary towns.”
The participating towns listed on the litigation include Township of Washington, Norwood, Parsippany-Troy Hills, Franklin Lakes, Cedar Grove, East Hanover, Holmdel, Wall, Little Falls, Montvale, Allendale, Westwood, Hanover, Wyckoff, Wharton, Mendham, Oradell, Denville, Florham Park, Hillsdale, Mannington, Millburn, Montville, Old Tappan, Totowa, Closter and West Amwell.
The FSHC stated the court rejected the plaintiffs’ procedural and substantive arguments, while LLRP plans to appeal and pursue the case to the Supreme Court. The group alleges procedural and ethical issues with the state’s affordable housing framework, including concerns about the role of administrative experts and perceived preferential treatment for the FSHC.
New Jersey’s affordable housing obligations, rooted in the Mount Laurel Doctrine, require towns to submit compliance plans by Jan. 31, and finalize them by June 30. Over 200 municipalities are working toward compliance, while the lawsuit, as FSHC notes, involves less than 5% of towns. Judge Lougy rescheduled a hearing on whether to dismiss the case entirely to May 9, pending further developments.
In his latest update to residents, Ghassali spelled out this timeline for the rest of 2025:
- Jan. 31: Municipality must adopt binding resolution on fair share obligations and file an action with the Program within 48 hours.
- Feb. 28: Deadline for filing a challenge to a municipal resolution on fair share obligations.
- March 31: Deadline for Program decision on fair share obligations.
- June 30: Municipality must adopt binding resolution on Housing Element and Fair Share Plan.
- Aug. 31: Deadline for filing a challenge to municipal resolution on Housing Element and Fair Share Plan.
- Dec. 31: Deadline for Program decision on Housing Element and Fair Share Plan.