MONTVALE — Mayor Mike Ghassali told residents Dec. 31 that a proposed settlement involving two developer intervenors in Montvale’s Fourth Round affordable housing plan drew objections at a Dec. 30 court hearing, and that a ruling from the judge is expected in mid-January.
Ghassali said the borough “participated in a hearing before Judge Mendez and the court-appointed Planner Frank Banisch” on Dec. 30 and outlined a proposed settlement “after lengthy negotiations” related to Montvale’s plan to meet its Fourth Round affordable housing obligation.
The Borough Council approved the settlement at a special meeting on Monday, Dec. 29, Ghassali said, adding that he plans to provide details of the proposed agreement “pending court review.”
Ghassali said, however, that “another intervenor and the Fair Share Housing Center, objected to the proposed settlement at the hearing,” and that the borough expects “a determination from Judge Mendez in mid-January.” Asked for clarification over email, Ghassali identified the new intervenor as “Avalon Bay.” AvalonBay Communities Inc. is a publicly traded real estate investment trust that invests in apartments.
The update comes after the borough postponed a community town hall meeting that had been scheduled for Dec. 22 to discuss Montvale’s mediated Fourth Round settlement. At the time, the borough said it was postponing the meeting because “we do not yet have any information appropriate on the affordable housing settlement to share,” and officials said a new date would be announced once updates are available.
The Fourth Round affordable housing period runs from July 1, 2025, through June 30, 2035. Under New Jersey’s amended affordable housing law, municipalities are required to reach final settlements on their Fourth Round Housing Element and Fair Share Plans (HEFSPs) by Dec. 31, 2025.
In the same Dec. 31 message, Ghassali also provided an update on a separate lawsuit brought by Montvale and 36 other towns challenging the broader affordable housing process. Ghassali said the borough learned that U.S. District Court Judge Zahid N. Quraishi has agreed to hear the case, and that Ghassali will testify in federal court in Trenton on Wednesday, Jan. 7, 2026.
“I look forward to communicating further details on both these fronts in the coming days,” Ghassali wrote.