HILLSDALE, N.J.—A newly adopted affordable housing plan reduces Hillsdale’s required fourth-round housing obligation from 190 units to just four—thanks to a Vacant Land Adjustment (VLA) and strategic redevelopment planning.
The plan, known as the Housing Element and Fair Share Plan (HEFSP), was approved by the Joint Planning Board on June 24 and endorsed unanimously by the Borough Council in a special Zoom meeting on June 25.
The HEFSP, posted online June 12, is required under New Jersey’s Fair Housing Act. Municipalities must submit a certified plan by June 30 or risk losing local zoning authority, opening the door to so-called “builder’s remedy” lawsuits that permit high-density development.
Planner Darlene Green of Colliers Engineering & Design said the borough was initially assigned a 220-unit “prospective need” for the 2025–2035 fourth-round cycle by the state Department of Community Affairs. After negotiation, Hillsdale’s obligation was reduced to 190 units, and following a successful VLA that eliminated much of the borough’s developable land—including areas near reservoirs and backyard spaces—that number was further reduced to a realistic development potential (RDP) of four units.
Under state rules, towns using a VLA must still provide 25% of their adjusted need. For Hillsdale, that added one unit, bringing the total fourth-round obligation to five units.
Green said the 25% requirement reflects recent guidance from court-appointed affordable housing adjudicators, although the interpretation is contested.
Unmet Need Still in Play
While Hillsdale’s formal RDP is five units, the plan acknowledges an “unmet need” of 186 units—the difference between the adjusted obligation and what can be built under current conditions. Though the borough is not required to construct those units now, it must demonstrate it is planning appropriately.
The HEFSP makes it clear that Hillsdale interprets the 25% requirement as applying only to its adjusted RDP—not the unmet need. However, it adds that if a court rules otherwise, the borough will amend its plan accordingly.
Where the Units Will Go
The borough’s five-unit obligation will be met through two projects:
- 40 Central Avenue: A 0.61-acre lot is being redeveloped by Bergen County United Way into a four-bedroom group home for very-low-income residents. All units will be deed-restricted for a minimum of 40 years.
- 100–101 West St.: Initially proposed as a 20-unit development with two affordable units, this project was revised to include 18 townhomes, including four affordable units as stacked flats and 14 market-rate townhomes. The developer, 100 West Land Trust, submitted a formal letter of interest on May 22.
Next Steps and Legal Timeline
Borough Attorney Mark Madaio said the plan will be filed with the Superior Court by noon on June 26, ahead of the state deadline.
Following submission, developers, advocacy organizations, and other intervenors have from July 1 to Aug. 31 to file legal challenges. Under New Jersey’s amended Fair Housing Act, towns must resolve any disputes or explain why they cannot by Dec. 31, 2025.
By March 15, 2026, Hillsdale must also adopt all ordinances necessary to implement the HEFSP.
What the Plan Includes
- The 70-page HEFSP includes:
- An implementation timeline
- Relevant ordinances
- A list of properties slated for inclusionary development
- An overview of natural and zoning constraints—43.3% of land is considered environmentally constrained
- A note that Hillsdale’s industrial zone is already subject to a redevelopment plan allowing inclusionary development (requiring 15% of rental and 20% of for-sale units to be affordable)
The plan also outlines Hillsdale’s four-part obligation under New Jersey’s housing law:
- Rehabilitation (1999–2025)
- Prior Round Obligations (1987–1999)
- Third Round Obligations (1999–2025)
- Fourth Round Obligations (2025–2035)