PASCACK VALLEY—Local Leaders for Responsible Planning (LLRP), a coalition of suburban municipalities led by Montvale Mayor Michael Ghassali, is pressing forward with its legal challenge to New Jersey’s Fourth Round affordable housing mandates. This comes after Mercer County Superior Court Judge Robert T. Lougy on Jan. 2 denied the group’s motion to pause the law’s implementation.
In a 68-page decision, Lougy ruled there was insufficient evidence to warrant a stay, emphasizing the law’s importance in addressing the housing needs of many. “The Court finds it incongruous with all principles of equity to leave the State’s low- and moderate-income households in worse shape than before the Legislature’s comprehensive reshaping of the field,” Lougy wrote.
The LLRP, representing 28 municipalities, contends the mandates unfairly burden suburban towns with high-density housing obligations while exempting urban areas. Ghassali has repeatedly stated that the coalition supports affordable housing but opposes what it sees as an inequitable system.
“It’s about resisting high-density mandates that harm the character and planning autonomy of our towns,” Ghassali said.
Upcoming Rulings
Two critical decisions from Judge Lougy are expected this month:
- Jan. 3: Lougy will rule on whether the New Jersey Urban Mayors Association (NJUMA) can intervene in the lawsuit, which aims to halt the Fourth Round obligations set to begin in July.
- Jan. 31: Lougy will hear oral arguments via Zoom on motions by the New Jersey Attorney General’s Office and Fair Share Housing Center (FSHC) to dismiss the coalition’s lawsuit.
LLRP’s Legal Response
Despite the recent setback, LLRP has outlined three primary legal actions:
- Appealing the Stay Denial – The coalition plans to appeal Lougy’s decision, arguing that the Jan. 31, 2025, deadline and compliance requirements are not truly optional and impose undue harm on municipalities.
- Amending Their Complaint – LLRP will challenge recent court guidance granting FSHC authority to review municipal housing plans, calling it an overreach and a violation of judicial impartiality.
- Challenging Housing Rules – The coalition intends to contest regulations issued by the New Jersey Housing and Mortgage Finance Agency, claiming they were implemented without public input, in violation of the Administrative Procedures Act.
A Broader Debate
The legal battle underscores growing tension between municipalities and advocates of the new housing law, signed by Gov. Phil Murphy in March 2024. The law institutionalizes the Mount Laurel Doctrine, requiring municipalities to meet affordable housing obligations recalculated every decade based on regional growth and demographic factors.
The nonprofit Fair Share Housing Center, a key proponent of the law, and a sharp critic of Ghassali’s efforts, has lauded it as a crucial step in addressing New Jersey’s housing crisis.
“We’re thankful Judge Lougy recognized there’s clearly not enough evidence to put New Jersey’s landmark new affordable housing law on hold,” said Adam Gordon, FSHC’s executive director, in a prompt press statement following the judge’s decision Jan. 2. “A delay in building affordable housing, as the lawsuit seeks, would be devastating for working families, people with disabilities, and seniors struggling with record-high housing costs.”
Gordon dismissed LLRP’s lawsuit as a “thinly veiled political statement” and criticized its composition as “two dozen historically exclusionary municipalities…deeply unrepresentative of New Jersey’s diverse population.” He said, “This lawsuit is nothing new — it’s a smokescreen supported by many of the same wealthy towns who have fought affordable housing for decades, every step of the way.”
He also emphasized the flexibility of the law, which allows municipalities to create housing plans tailored to their communities. “New Jersey’s law gives towns a wide variety of tools to create affordable housing in ways that suit their communities. Most towns do cooperate with the process — and they get to decide on the housing plan that works best for their communities.”
The Road Ahead
With deadlines looming, municipalities are required to adopt either state guidance or compliant calculations by Jan. 31, and submit detailed housing plans by June 30. The outcome of the coalition’s lawsuit, however, could have a significant impact on the future of housing policy in the Garden State.
Ghassali, via an LLRP press statement Thursday afternoon, reaffirmed his commitment to pursuing equitable solutions through the courts. “Fair housing is a critical goal, but it must be pursued fairly,” the organization said. “We will continue to fight for solutions that preserve the integrity of our towns while addressing housing needs statewide.”
Sidebar: Key Dates
- Jan. 3, 2025: Judge Lougy rules on NJUMA’s request to intervene.
- Jan. 31, 2025: Oral arguments on motions to dismiss LLRP’s lawsuit.
- Jan. 31, 2025: Municipalities must adopt resolutions accepting state guidance or presenting their own calculations.
- June 30, 2025: Municipalities must submit detailed housing plans.
Editor’s note: Judge Lougy ruled on this motion Jan. 2, and the nonprofit Fair Share Housing Center issued a prompt press release coinciding with our print press deadline. A version of this story, which we ran without yet having received Local Leaders for Responsible Planning’s reaction, runs on the front page of our Jan. 6, 2025 print edition as “Judge won’t ‘stay’ N.J. housing law; low-, moderate-income households would be ‘in worse shape’ were next steps on affordables delayed.” In that space, we promised our print readers we’d update the story here, and we’re happy to do so. We note, too, that we accept brief, respectful letters to the editor on timely local topics. For further updates and context, visit thepressgroup.net.