Superior Court Rejects Stay of Affordable Housing Law – Fourth Round to Proceed

On January 2, 2025, the Hon. Robert Lougy, A.J.S.C. entered an order denying a stay of the amended Fair Housing Act, N.J.S.A. 52:27D-301 et seq. (The amendment is frequently referred to by its N.J. Assembly bill number, “A4”).  Thirty municipalities led by the Borough of Montvale sued to invalidate A4 and sought a multi-year pause of the statewide affordable housing program that has come to be known as Mt. Laurel.

The Stay of the Fourth Round is Rejected

Judge Lougy decisively rejected the municipal effort to stay A4, finding that the municipalities had not satisfied any of the requirements for injunctive relief.  Judge Lougy further found that even if the legislation was stayed or invalidated, all New Jersey municipalities must address their Mt. Laurel obligations.  Other arguments by the municipalities, such as that the “Program” – a fast-track dispute resolution process to deal with objections to municipal compliance plans – violated separation of powers; that the urban aid exception for certain municipalities, such as Newark and Paterson, was invalid on equal protection grounds, and that A4 constituted “special legislation” in violation of the New Jersey Constitution, were rejected.

Future Legal Proceedings in the Case

Both the State of New Jersey and the Fair Share Housing Center have pending motions to dismiss the complaint.  Oral argument on those motions will be heard on January 31, 2025, and the proceedings will be livestreamed at 10:00 a.m. on the judiciary’s website.  It seems likely that some, if not all, of the claims advanced in the challenge to A4 will be dismissed at that time.

Mt. Laurel Compliance Requirements under A4

A4 establishes various deadlines for any municipality that wishes to participate in the Program.  The next deadline is January 31, 2025 for municipalities to decide whether to accept or reject their fair share allocation as calculated in October 2024 by the Department of Community Affairs.  Developers seeking to challenge a municipality’s acceptance of its fair share allocation must do so by February 28, 2025.  Municipalities that do not comply with the deadlines, including a later deadline to prepare a Housing Element and Fair Share Plan, will be exposed to builder’s remedy lawsuits.

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Beattie Padovano, LLC is on the leading edge of Mt. Laurel jurisprudence, having represented developers in exceptionally complex affordable housing litigations over the last decade that have produced important court decisions including several that are published.  Our attorneys have secured builder’s remedies against numerous municipalities, negotiated dozens of affordable housing settlements, and provided legal input in producing zoning that has resulted or will result in the construction of thousands of housing units, along with significant associated commercial development.   For more information on how this decision may impact your projects or for assistance with navigating similar legal challenges, please contact our team at Beattie Padovano.