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WAR OVER AFFORDABLE HOUSING: NJ BUILDERS TAKE ON 159 TOWNS IN MASSIVE LEGAL SHOWDOWN

WAR OVER AFFORDABLE HOUSING: NJ BUILDERS TAKE ON 159 TOWNS IN MASSIVE LEGAL SHOWDOWN

The battle lines are drawn, and it’s getting ugly. The New Jersey Builders Association (NJBA) is ready to drag 159 towns into court over what they call a deliberate attempt to dodge affordable housing mandates. The towns, however, argue the state is forcing reckless overdevelopment, and they’re not going down without a fight.

Key Takeaways:

  • 159 towns are trying to slash their state-mandated affordable housing obligations.
  • The NJBA is accusing them of "obfuscation and delay" and is prepping lawsuits.
  • New Jersey faces a 200,000-unit shortfall in affordable housing.
  • Developers are calling for transparency, but towns fear massive population spikes and infrastructure strain.

NJBA vs. Towns: The Gloves Are Off

The NJBA isn’t playing around. They’re slamming municipalities for trying to rewrite the math on their housing obligations, claiming these towns are undermining low- and moderate-income housing to keep their communities exclusive.

Municipalities had until Jan. 31 to either accept the state’s numbers or submit their own calculations. The Department of Community Affairs (DCA) estimates that towns must build 85,000 affordable units over the next decade. But many towns argue that the numbers are unrealistic and will force high-density housing projects they can’t support.

"This is just another chapter in the state's never-ending affordable housing war," said an NJBA spokesperson. "We won’t stand by while towns try to erase 14,000 affordable units from existence."

Meanwhile, towns like Montvale are pushing back, calling the state’s quotas a disaster. Their mayor, Mike Ghassali, claims Montvale’s new 348-unit requirement would spike their population by nearly 50%, straining schools, roads, and public services.

"This mandate is reckless," Ghassali said. "It ignores local realities and will turn our town into an urban nightmare."

Developers vs. Towns: Who’s Really Winning?

Critics argue that these lawsuits aren’t about helping low-income residents—they’re about giving developers free rein to build massive high-rises.

Under current law, developers only need to allocate 15-20% of units in a complex to affordable housing. This means a 100-unit building only counts for 15 affordable homes, leaving towns drowning in new construction while still failing to meet obligations.

"Developers win, towns lose," one local planner said. "They get to build luxury apartments, slap in a handful of affordable units, and call it a day."

List of Towns Facing NJBA Lawsuits

These towns are in the NJBA’s legal crosshairs, accused of dodging their affordable housing responsibilities:

Bergen County:

  • Ridgewood, Fort Lee, Englewood, Mahwah, Hackensack, Montvale, and more.

Morris County:

  • Parsippany, Morristown, Mount Olive, Randolph, Roxbury, and more.

Passaic County:

  • Hawthorne, Little Falls, Pompton Lakes, Woodland Park and others.

Sussex County:

  • Sparta, Hopatcong, Vernon, Hardyston, and more.

With developers, state officials, and local leaders at war, one thing is clear: New Jersey’s housing crisis isn’t ending anytime soon. The next battle? The courtroom.

Follow The Garden State Gazette for the latest updates on this legal showdown. Who’s fighting back? Who’s caving? And will New Jersey’s housing crunch ever be solved?

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