NJ towns that sued state agree to affordable housing quotas after multiple court losses

Local New Jersey officials suing to upend the state’s ambitious affordable housing plan have begun to commit to building low-priced homes in their towns as their efforts to halt the process this month have fizzled out.

Twenty-seven towns have now failed twice to get a judge to grant a stay of the law ahead of a Jan. 31 deadline. By Friday, towns must either accept the state’s affordable housing quotas for each municipality to build over the next decade or counterpropose a different number of homes.

On Monday, the New Jersey appellate division rejected the towns’ request to hear an emergency appeal of their pleas to halt the affordable housing law.

In the wake of their failure to put the law on hold, town officials involved in the lawsuit have begun passing resolutions that commit their municipalities to build the very housing they’ve fought against in court, which they've argued would lead to the overdevelopment of their communities. So far, 13 of the 27 towns have passed resolutions this month, putting them on track to meet the state’s deadline.

Parsippany-Troy Hills Councilmember Justin Musella said town officials passed a resolution on Jan. 14 primarily to avoid getting sued.

“We had to basically say we tentatively agreed with the numbers set to us to not worry about having our immunity stripped from a builder's remedy suit,” he said, referring to a type of lawsuit that allows builders and developers to sue municipalities that run afoul of the rules, possibly forcing town officials to open their communities for development.

Musella said that the resolution should not be taken as an indication that town leaders are backing down on the lawsuit. He said Parsippany remains committed to fighting the law “every step of the way.”

”If we're successful in the suit, then we basically have an escape hatch,” he said.

In their resolution, Parsippany officials requested that their obligation for new affordable homes be reduced from 553 units to 496, citing a lack of developable land. They argue that the state overestimated the town’s amount of developable land when it identified about 65 acres available for new housing. Parsippany’s planner believes that number is closer to 20 acres, according to an analysis attached to the resolution.

Musella said he was confident that the state would approve Parsippany's request.

”We're working in good faith, even in conjunction with the lawsuit. So I don't see why they would say no to us,” he said.

After Jan. 31, a panel of retired New Jersey judges will review all towns’ requests to lower their obligations. According to state guidelines, the panel must render its decisions by March 31.

Despite their failure to put the brakes on the law, the lawsuit brought by Parsippany and other towns will continue in Mercer County Superior Court. The plaintiffs have indicated that they plan to file a new complaint in the coming months, which could add new towns that choose to join the litigation.

“All we are asking is for our courts to provide everyone a fair process and to follow the law,” said Montvale Mayor Mike Ghassali, who is leading the coalition of towns suing the state.

State Attorney General Matthew Platkin’s office filed a motion to dismiss the towns’ lawsuit in December. Judge Robert Lougy said in a scheduling order this week that he’s pushing back plans to rule on that motion until May.

While the legal fight drags on, Musella said he would continue to follow the state’s affordable housing rules as they currently stand.

”Obviously we have to plan around this … to ensure that we're working in good faith to hit our number,” he said. “In the next few months, I think what you'll see is projects that are approved with an affordable component that are counting towards that number.”