NJ Affordable Housing Lawsuit Includes 2 Essex County Towns

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The quotas for Millburn and Cedar Grove are:

Towns and cities don’t have to create the housing themselves, but must ensure that the threshold is met, often by requiring affordable housing units as part of local real estate development projects.

This has caused some bad blood between the state and some municipalities, including Millburn and Cedar Grove, which have joined a lawsuit with several other New Jersey towns seeking to overturn the law.

The lawsuit – filed under the banner of “Local Leaders for Responsible Planning” – now includes the Borough of Montvale, Township of Denville, Borough of Florham Park, Borough of Hillsdale, Township of Mannington, Township of Millburn, Township of Montville, Borough of Old Tappan, Borough of Totowa, Borough of Allendale, Borough of Westwood, Township of Hanover, Township of Wyckoff, Borough of Wharton, Borough of Mendham, Borough of Oradell, Borough of Closter, Township of West Amwell, Township of Washington, Borough of Norwood, Township of Parsippany-Troy Hills, Borough of Franklin Lakes, Township of Cedar Grove, Township of East Hanover, Township of Holmdel, and Township of Wall.

The coalition has been keeping the pressure on the DCA, calling a recently released map of vacant/developable land “erroneous” and “unreasonable.”

A judge is scheduled to hear oral argument on the municipalities’ application for a stay of the fourth-round affordable housing law on Dec. 20.

Some elected officials have supported the law, arguing that it’s time for “ultra-wealthy communities” to create their fair share of affordable housing. Read More: NJ Advocates Defend State’s Affordable Housing Rules Amid Lawsuit

“This is a statewide issue that is driving up costs for everyone living in our state, not just in the suburbs or cities but across the board,” Newark Mayor Ras Baraka said.

“Most New Jerseyans understand the need for more housing because most New Jerseyans want to reduce costs, prevent homelessness and raise our standard of living,” Baraka said. “But we can’t do this by fighting each other. When we waste time fighting amongst ourselves, housing continues to go unbuilt and we all lose.”

Some towns have already gotten a jump on the process, with one New Jersey mayor declaring that a recent settlement isn’t perfect, but “doesn’t bleed out forever and doesn’t cost us lawyers.” Read More: NJ Town Reaches Settlement, Will Build 1,500 Affordable Housing Units

Others towns aren’t so eager to reach a deal, however.

Millburn was among the first municipalities to join the lawsuit, and has a past history of pushing back against affordable housing obligations handed down by the state.

A year ago, the Millburn Township Committee approved a settlement with the Fair Share Housing Corporation, a nonprofit activist group, to ultimately meet its housing obligation by 2025, including some new development. But residents (and certain officials) objected to an all-affordable housing development proposed for 9-11 Main St., which would provide 75 units for families. Some said that the building should have a mix of incomes, while others said they had environmental concerns with the site.

The Cedar Grove Township Council approved a resolution opposing the latest round of affordable housing obligations in March, agreeing to kick in $10,000 in 2024 and $10,000 in 2025 to help fund the legal battle.

“There’s no flexibility, it appears, for towns like ours that have always worked in good faith to try to fully comply,” Cedar Grove Councilman Joseph Maceri said.

The coalition may be in for a serious battle, however, housing advocates say.

The Fair Share Housing Center has called the legal effort to derail the new law a “smokescreen,” and said it will likely be thrown out of court.

“This lawsuit is nothing new — it’s supported by many of the same ultra-wealthy communities who have fought affordable housing for decades, every step of the way,” the nonprofit charged.

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There are several ways that towns and cities can meet their affordable housing quotas, advocates said:

“Municipalities can choose from a range of options — including 100% affordable housing, mixed income housing, preservation of existing affordable homes that otherwise would no longer be affordable, and accessory dwelling units that a property owner can place on their property. The recently-enacted law and associated bills give towns additional tools like new bonuses, financing options, and credits to meet their obligation.”

Currently, the state needs to rehab 65,410 affordable homes or apartments to meet its housing needs. Looking ahead, an additional 84,698 units will need to be built across New Jersey over the next decade, officials say.

These numbers still fall short of what the National Low Income Housing Coalition estimates is needed for extremely low-income households, which is 214,475 rental homes.

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