MONTVALE—The Borough Council voted unanimously on July 26 to hire King, Moench & Collins LLP as special affordable housing counsel for its planned lawsuit, which aims to compel 62 towns exempt from building affordable units to build their “fair share” of such housing.
In a seven-minute special Zoom meeting that started 20 minutes late, the Montvale council voted, 6-0, to hire the Red Bank firm to represent a coalition of municipalities in the lawsuit and for a “review and potential challenge to the affordable housing law passed by the state,” said Montvale Mayor Michael Ghassali at the meeting.
So far, says Montvale administrator Joseph Voytus, seven towns have committed $20,000 to the fight, including Clark, Florham Park, Hillsdale, Old Tappan, Oradell, River Vale, and Township of Washington.
A resolution approved by the council hired King, Moench & Collins LLP (KMP) for an amount “not to exceed” $30,000 at an hourly rate of $225. The resolution noted that four submissions for counsel were received. Ghassali, Voytus, and borough attorney David Lafferty reviewed the submissions.
Before he named the towns backing Montvale with pledges of funds, Voytus told us that “verbal support” from municipalities for a legal challenge has been “more than enough” to move forward. He said hiring an affordable housing counsel gives the effort a focus for “putting together a plan for how to challenge this law.”
The next step would likely be a plan by the attorneys via a memo or draft legal complaint to the involved towns.
Ghassali champions a planned statewide legal challenge, hoping to raise $20,000 from at least 62 non-exempt municipalities—for a total of $1.2 million—to file a lawsuit that will force 62 currently exempt “urban aid” municipalities to provide affordable housing for their residents.
The $20,000 contribution was to cover anticipated litigation costs in 2024 and 2025. We confirmed that the Hillsdale, River Vale, Township of Washington, and Old Tappan councils have passed resolutions approving funds.
In contrast, at least for now, Emerson’s borough attorney has advised his governing body to wait for signs of a clear legal strategy on Montvale’s proposal—“meat on the bone”—before taking action.
‘It is the intention of the borough…’
Montvale’s resolution reads in part, “It is the intention of the borough that the cost of retaining KMC for the purpose set forth above shall be shared among numerous municipalities who have expressed support for this initiative; and the borough’s chief financial officer has certified that funds have been appropriated and are available for this purpose.”
KMC says on its website, in part, “We represent numerous public entities, ranging from counties and municipalities to school boards. We use this unique experience to benefit our private sector clients in their interactions with government, including through our courts, administrative agencies, and land use boards.”
Ghassali argues that if the 62 exempt towns are forced to provide affordable housing, that should reduce the overall housing numbers required of towns statewide, including suburban towns such as Montvale.
One resident called in to the meeting to express support. “I just affirm what you guys are doing,” he said.
Ghassali noted a few residents were online during the Zoom meeting but did not speak. He said “next steps” would include meeting with the newly hired law firm over the next week to “develop strategies” and communicate with the towns about the planned lawsuit.
In an early July letter sent to New Jersey’s 565 towns, Ghassali asked for towns to join the battle to force all towns to build affordable housing and set an Aug. 14 deadline for towns to pass a resolution of support and commit $20,000 to the legal challenge.
Ghassali appeared on July 18 on NJSpotlight News, the state’s public television network, to explain the lawsuit, noting Montvale had 365 affordable units built in the last decade, comprising 10% of the borough’s housing stock.
He said he has two boys “that cannot afford the town they grew up in, so I get it, 100%, we absolutely have to build (affordables),” noting the challenge is also a lack of infrastructure, citing the need for a second water tower for water pressure, widening of streets, and more school space for additional students.
The “Family Town’s” views thus far
Emerson’s borough attorney advised his council to wait for more information and a clear legal strategy on Montvale’s proposed statewide lawsuit against the new affordable housing law before deciding whether to join the legal battle and contribute $20,000 to the effort.
Borough attorney John McCann said Ghassali’s effort lacks a legal strategy. He noted that the “causative action in the legal attack against the state” was not yet defined.
“What are you signing up for? We don’t know. They haven’t proffered any legal strategy, any concept of how to attack it. So right now, it’s just a great idea but there’s no meat on the bone,” McCann told the council.
McCann added, “When you sue someone, you have to have some concept of what the litigation is all about, outside of the fact that you’re just standing up against something.”
“At this point, the governing body is looking for more information before we make a definitive decision on joining the lawsuit,” Emerson Mayor Danielle DiPaola told a resident inquiring about whether Emerson might join the fray.
DiPaola mentioned she had met with Ghassali and was “very well aware of what his plan is. We’d like to see it move a little further before we decide to dedicate taxpayer dollars toward it.”
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