TRENTON, N.J. — Mercer County Superior Court Judge Robert T. Lougy on Jan. 27 denied a second request to stay New Jersey’s landmark affordable housing law, marking the fifth time courts have rejected efforts to pause the legislation.
The lawsuit was brought by nearly 30 municipalities, led by Montvale and its mayor, Michael Ghassali, together as plaintiffs Local Leaders for Responsible Planning (LLRP), with eyes on an answer at “Supreme Court” — no word on whether this referred to New Jersey’s or the United States’.
The nonprofit Fair Share Housing Center (FSHC), which advocates for affordable housing, characterized the plaintiffs as “many of the wealthiest and most historically exclusionary municipalities in the state.”
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.
FSHC said in a statement Jan. 27 that the court rejected the plaintiffs’ procedural approach, writing, “Plaintiffs have failed at every turn to get injunctive relief on the claims properly pleaded and seek relief here on claims not properly before the Court.” The statement added, “The Court also rejected all of the substantive arguments brought by the municipalities in their latest filing.”
Judge Lougy postponed a hearing originally scheduled for Jan. 31 on whether to dismiss the lawsuit entirely, setting a new date of May 9 but noting that it could change again.
FSHC director Adam Gordon criticized the lawsuit, saying, “It’s outrageous that a small group of wealthy towns is continuing to expend tremendous amounts of taxpayer dollars attempting to block the affordable homes New Jerseyans desperately need.” He noted that fewer than 5% of New Jersey municipalities are involved in the lawsuit, while over 200 towns have already taken steps to comply with the state’s Fourth Round of affordable housing obligations.
Mount Laurel Doctrine and Affordable Housing Legislation
New Jersey’s affordable housing framework stems from the Mount Laurel Doctrine, which requires municipalities to provide their fair share of affordable homes. Governor Phil Murphy signed legislation (S50/A4) in March 2024 to streamline the process and codify the methodology for calculating obligations.
The Department of Community Affairs (DCA) released updated affordable housing calculations in October, giving municipalities until Jan. 31, 2025, to submit compliance plans or their own calculations consistent with state law. Municipalities must adopt specific plans to meet their obligations by June 30.
LLRP Complaints
In response to Judge Lougy’s decision, LLRP announced plans to appeal and filed an emergent application with the Appellate Division on Jan. 27. The group raised concerns about alleged procedural and ethical issues, including:
- Administrative experts deciding housing obligations are allowed outside income and political activity, which LLRP claims violates legislative requirements.
- Fair Share Housing Center receiving preferential treatment, with towns required to submit plans to the nonprofit before state review.
- Lack of judicial review of administrative rules issued by the retiring Administrative Director of the Courts.
LLRP also stated it would appear before the HMFA Board on Jan. 27, seeking a stay on rules issued without notice and comment, as required by law.
It said, “All we are asking is for our courts to provide everyone a fair process and to follow the law. Our coalition is committed to litigating this case to the Supreme Court while also informing the people of New Jersey about what we have uncovered along the way.”