TRENTON—A Superior Court judge has rejected a challenge from a group of 36 New Jersey municipalities led by Montvale that sought to block the state’s sweeping new affordable-housing law, which could add tens of thousands of low-cost homes statewide.
In an 81-page opinion issued Sept. 30, Mercer County Assignment Judge Robert Lougy dismissed two lawsuits filed by Local Leaders for Responsible Planning coalition, led by Montvale Mayor Michael Ghassali, ruling that the 2024 statute falls within the Legislature’s constitutional authority to implement the state Supreme Court’s Mount Laurel housing mandate.
Lougy’s decision dismissed the cases with prejudice, meaning they cannot be refiled. His ruling follows earlier denials by the Appellate Division and Supreme Court of the coalition’s attempts to stay the law.
A separate federal lawsuit—arguing the law improperly exempts the state’s largest “urban aid” cities from new housing obligations—remains pending.
Affordable-housing advocates hailed the decision. “It’s outrageous that a handful of wealthy towns are spending hundreds of thousands of taxpayer dollars trying to block the affordable homes New Jerseyans desperately need,” said Josh Bauers of the nonprofit Fair Share Housing Center.
State officials note that roughly three-quarters of New Jersey’s 564 municipalities have submitted plans under the new law, the highest participation rate in the 50-year history of the process. Towns with approved plans are protected from so-called “builder’s-remedy” lawsuits. Final plans are due by March 15.
Ghassali calls judge ‘rogue,’ vows appeal
Ghassali, who spearheaded the LLRP, denounced Lougy’s opinion and said the coalition will appeal to the Appellate Division.
“The trial court’s rogue decision held that municipalities and mayors cannot even challenge the affordable-housing process because it is optional,” Ghassali said in a statement. “We are appealing because there is nothing optional about mandating hundreds of thousands of new units in our communities.”
He said the decision would not deter the coalition—representing more than a half-million residents across nine counties—from pursuing its state and federal challenges, which also target the state Housing and Mortgage Finance Agency’s rule-making process and the law’s urban-area exemptions.
Coalition attorney Michael L. Collins said his clients believe the judge erred in finding that municipalities lack standing to contest obligations imposed upon them. “We look forward to bringing these issues to the Appellate Division,” he said.
A day before the ruling, Ghassali announced that New Milford had joined the coalition, expanding its membership to 36 towns including Montvale, River Vale, Hillsdale, Old Tappan, Westwood, and Township of Washington. “For 50 years, high-density housing has failed to solve the affordability crisis,” he wrote. “Yes, we need affordable housing—but not high-density housing.”
Supporters flooded the mayor’s Facebook page with praise and encouragement. “Thank you for continuing the fight to save our small suburban towns,” wrote one commenter. Others urged Ghassali to “run for higher office” and called the Mount Laurel doctrine “an unconstitutional abomination.”
Some residents, however, questioned the litigation’s cost and prospects. “Local zoning is granted by the Legislature,” one commenter wrote. “If the Legislature changes the rules, towns must comply.”
Despite the setback, Ghassali said he remains committed to challenging what he calls “50 years of disastrous Mount Laurel Doctrine law.”
“It will be a multi-year effort,” he said. “But our residents deserve local planning that reflects the character and capacity of our communities.”