A New Jersey judge dismissed a lawsuit filed by 27 towns challenging the state’s affordable housing law.
The judge upheld the law and its court-managed housing system, rejecting claims that the law is unconstitutional or imposes unfair costs.
The lawsuit was led by Montvale and included mostly suburban and affluent towns.
The ruling means towns must continue preparing their affordable housing plans for the 2025–2035 cycle.
Montvale Mayor Mike Ghassali vowed to appeal the decision.
Why this matters: This decision impacts the ongoing efforts to create affordable housing in New Jersey and sets the stage for potential further legal challenges. It highlights the tension between state mandates and local control in addressing housing needs.
The lawsuit, initiated in September 2024, challenged the Affordable Housing Reform Law signed by Gov. Phil Murphy. This law eliminated the Council on Affordable Housing and created a new court-managed system for calculating housing obligations and resolving disputes. The towns argued the law violated the Mount Laurel doctrine, imposed unfunded mandates, and breached the separation of powers.
Judge Robert Lougy rejected these claims, stating the Legislature has the authority to enforce the Mount Laurel doctrine. He emphasized that participation in the new program is voluntary, offering incentives like protection from lawsuits for towns that comply with state deadlines and opt into the program.
The towns, concentrated in north and central Jersey, include communities that have historically resisted high-density development and affordable housing mandates. The dismissal means these towns must proceed with preparing their "fourth round" affordable housing plans.
Montvale, for example, has a mandate of 205 units, but Mayor Ghassali argues the state is requiring development on unsuitable land. Despite the ruling, the towns plan to appeal, continuing the legal battle over affordable housing in New Jersey.
Q: What is the Mount Laurel doctrine?
It is a constitutional rule that requires towns in New Jersey to provide their fair share of affordable housing.
Q: What happens if towns don’t comply with the affordable housing mandates?
They may face legal challenges from developers or housing advocates.
Q: Is participation in the state’s affordable housing program mandatory?
Judge Lougy stated that participation is voluntary, but towns that don’t participate may face lawsuits.
The dismissal of the lawsuit means New Jersey towns must continue working on their affordable housing plans.
Towns that comply with the state’s program receive legal immunity from exclusionary zoning lawsuits.
The legal battle over affordable housing in New Jersey is ongoing, with the towns planning to appeal the decision.
This case highlights the complexities and challenges in implementing affordable housing mandates at the local level.
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