Court dismisses N.J. mayors’ challenge to affordable housing law

A New Jersey Superior Court judge has dismissed lawsuits from a coalition of state municipalities seeking to overturn a new affordable housing law — dealing a major setback to opponents of the policy.

Assignment Judge Robert Lougy on Tuesday rejected two suits filed by the Local Leaders for Responsible Planning, a group led by Montvale, New Jersey, Mayor Mike Ghassali.

An 81-page opinion dismissed the cases with prejudice and barred them from being refiled, NJ Spotlight News reported.

“The significant opinions of our Supreme Court have defined what the Constitution requires in providing affordable housing and emphasized the important role of the legislative and executive branches in fulfilling that obligation,” Lougy wrote.

Lawsuit argued law is an overreach

The coalition of about three dozen towns argued that the 2024 law exceeded the requirements of the state Supreme Court’s Mount Laurel doctrine, which established that municipalities must allow their “fair share” of low-income housing.

Lougy rejected that claim, along with all others raised.

The ruling effectively ends the mayors’ challenge in state court. Previous efforts to block the law during litigation failed at the appellate and state Supreme Court levels.

A federal lawsuit, however, is still pending.

That case argues the law violates the U.S. Constitution’s equal protection clause by exempting the state’s most densely populated “urban aid” municipalities from future obligations — though they must rehabilitate existing affordable units, NJ Spotlight News added.

Municipal plans accused of falling short

Affordable housing advocates praised Lougy’s decision.

“It’s outrageous that a handful of wealthy towns are spending hundreds of thousands of dollars in taxpayer money trying to block the affordable homes New Jerseyans desperately need,” Josh Bauers of Fair Share Housing Center told NJ Spotlight News. “Thankfully, Judge Lougy saw through their baseless claims — and the overwhelming majority of municipalities are already moving forward to create the homes our families, seniors and people with disabilities urgently need.”

New Jersey set housing obligations of about 81,000 units last year.

This summer, 423 municipalities filed affordable housing plans — the largest participation in the 50-year history of the process.

Some towns, including East Brunswick, Galloway Township and Paramus, are redeveloping malls and other sites into mixed-income housing, local reports said.

Municipalities with approved plans are reportedly shielded from so-called “builder’s remedy” lawsuits, which can force high-density construction if towns fail to comply.

Fair Share Housing has challenged 16 municipal plans — contending they fall short. Those disputes are now in mediation and could move to expedited court hearings in early 2026.

Final housing plans must be in place by March 15.