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Federal affordable housing suit nixed

Municipalities sought to halt law;s deadline

By: Marsha A. Stoltz
NorthJersey.com
USA Today Network - New Jersey

..... A federal judge echoed the ruling of a state judge and has rejected another effort by 29 New Jersey towns to block aspects of the state's affordable housing mandate.
..... The ruling in the lawsuit filed by the municipalities that were seeking to halt an upcoming deadline for compliance with Fourth Round Affordable Housing directives was handed down the same day that newly sworn-in Governor Mikie Sherrill called for improved access to affordable housing during her inauguration speech.
..... On January 20, [2026] U.S. District Judge Zahid Quraishi dismissed a federal lawsuit by the 29-town Lola Leaders for Responsible Planning. He denied a request for a motion to stay a March 15 [2026] deadline by which state municipalities are expected to adopt ordinances and resolutions necessary to implement their fourth round affordable housing plans.
..... The next step for the municipalities involved has not yet been determined.
..... "The borough will review yesterday's [01/20/2026] decision and confer with legal counsel," said Greg Hart, business administrator for Franklin Lakes, one of the 29 municipalities.
..... In the 17-page ruling, Quraishi concluded that the plaintiffs "lack standing" because they "cannot establish a redressable injury," meaning the group has not suffered a harm that the court can remedy with financial compensation or other relief.
..... The complaint was originally filed in April 2025, "alleging a violation of the Equal Protection Clause under the 14th amendment and a violation of the Equal Portentous Rights under the New Jersey Constitution."
..... However, Quraishi argued, municipalities cannot sue the state this way because "cases brought under the Equal Protection Clause concern individual rights."
..... "A municipality has other options," Quaishi wrote. "it may decline to participate in this process and instead choose to seek judgment of repose by filing for a declaratory judgment. Alternatively, a municipality may do nothing and instead wait to defend itself form any potential litigation.
..... Quraishi concluded, "while individual plaintiffs may not like these options, they are nonetheless free to pursue them."
..... Quraishi's ruling follows a September 2025 ruling by superior Court Judge Robert Lougy, in Mercer County, who dismissed with prejudge a similar lawsuit brought by the group, meaning it could not be refiled. Two emergent applications to the appellate Division and an appeal to the New Jersey Supreme Court have also failed.
..... "The courts have been crystal clear - New Jersey's affordable housing law is her to stay," said Adam Gordon, executive director at Fair Share Ho suing Center, a nonprofit advocacy group that argued against the towns' request. "Now that the federal court has rejected these claims in full, it;s time to mover forward - as the overwhelming majority of municipalities already are - by producing the affordable homes New Jersey desperately needs."
..... Gorden estimated that in response to the December 31, 2025, deadline to resolve challenges to municipal housing plans through mediation, about 380 of the state's 564 municipalities had submitted compliant plans, which he termed "an unprecedented level of participation in the state's affordable housing process."
..... The constitutional obligation for each New Jersey municipality to facilitate its "fair share" of affordable homes, known as the mount Laurel Doctrine, was established in 1975. Every 10 years each municipality;s obligations are recalculated based on job growth existing moderate-income households.
..... The ultimate motivation for municipal compliance is the potential loss of immunity from builder's remedy lawsuits, under which zoning laws and master plans are set aside to allow construction of affordable housing in whatever format is proposed by the applicant.

State ruling seen as partial win

..... The state judge's ruling in June 2025 that dismissed the same lawsuit was seen as a partial win by the group of municipalities.
..... Lougy granted the municipalities a partial victory, freeing them from having to share data directly with the chief housing advocacy group in New Jersey, the Fair Sabre Housing Center.
..... Both sides claimed a win in that ruling, even as the towns' broader lawsuit against the housing mandate continued.
..... The ruling, delivered in Mercer County. "effectively invalidates illegal provisos contained in the Affordable Housing Directive and requires the Administration Office of the Courts to issue corrective guidance," said a statement from Local Leaders for Responsible planning, an umbrella group representing the 29 communities.
..... The June 2025 state judge's ruling was appealed to the federal level.

Sherrill's support of housing

..... Meanwhile, Sherrill addressed affordable housing in her inaugural address.
..... While not specifically addressing Mount Laurel obligations, Sherrill cited a number of concerns related to affordable housing. She discussed the following:
* Reforming zoning laws to allow a greater variety of housing options.
* Streamlining permit and regulatory processes to cut red tape, lower housing production costs and boost supply.
* Strengthening support for first-time and first-generation home-buyers so that homeownership and generational wealth building are within reach for more New Jersey residents.
* Expanding tenant protectionist to hold negligent or discriminatory landlords accountable.
* Cracking down on predatory rental practices and enforcement gaps that drive up costs and undermine housing stability.

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