New Jersey Towns Face Setback in Lawsuit Against State’s Affordable Housing Mandate
Earlier this month, New Jersey Superior Court Judge Robert Lougy rejected a lawsuit filed by Local Leaders for Responsible Planning (LLRP)—a coalition of 29 New Jersey townships—alleging that the state’s affordable housing law violates the General Welfare Clause of the New Jersey Constitution. The housing law, signed by Democratic Gov. Phil Murphy in March 2024, codified the process for determining each town’s affordable housing quota and aimed to expedite the construction of housing units by directing municipalities to reform their zoning laws. The law is based on the Mount Laurel doctrine, established in 1975, which requires New Jersey municipalities to provide their “fair share” of affordable housing to prevent economic discrimination and promote housing opportunities for all.
Although many towns are falling behind the building requirements established in the state’s third round of planning under the doctrine, the fourth round of housing quotas is set to begin this year and will run through 2035. The state’s Department of Community Affairs estimates that towns statewide will need to construct 84,698 more affordable units by 2035 to meet the baseline for prospective housing needs.
In 2024, the LLRP filed a lawsuit challenging these mandates and the authority of the Fair Share Housing Center (FSHC) as the legal entity responsible for enforcing housing quotas and representing public interests. While individual municipalities are still responsible for making decisions regarding land use management and zoning, towns had to submit housing plans to the FSHC by June 30 or face “builder’s remedy” lawsuits, which allow developers to build high-density housing provided that 15 percent to 20 percent of the units are affordable housing.
Lougy denied the municipalities’ request to prohibit the implementation of some aspects of the housing mandate; he also ruled that towns only have to submit plans to the Fair
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