New housing law is unconstitutional, nine towns say in lawsuit

A bipartisan coalition of nine N.J. municipalities filed a lawsuit today challenging the constitutionality of an affordable housing law passed by the legislature earlier this year, arguing that the new mandates exceed the constitutional requirements.

The effort, led by Montvale Mayor Michael Ghassali, includes Denville, Florham Park, Hillsdale, Mannington, Millburn, Montville, Old Tappan, and Totowa as plaintiffs.  Ghassali said other municipalities, including Allendale, Oradell, River Vale, Washington (Bergen), Wharton, and Wyckoff, have passed resolutions supporting the “Local Leaders for Responsible Planning” lawsuit.

Gov. Phil Murphy signed a bill last March that set a path for future enforcement of the New Jersey Supreme Court’s Mount Laurel Doctrine – a fifty-year battle to mandate that every municipality accept its fair share of low and moderate-income housing.

“The new Fourth Round mandates from Trenton go too far and will place unnecessary strain on our towns without providing any resources to make it work,” said Ghassali.  “Our priority is to fight so that local elected officials have the power to ensure our towns grow in a responsible manner, which this law prevents.”

The lawsuit filed today by Michael Collins of King, Moench & Collins claims that the structure of the newly created Affordable Housing Dispute Resolution Program, which allows the acting director of the administrative office of the courts to pick the panel members, is unconstitutional.

Collins also alleges that housing obligations under the new law significantly exceed the constitutional requirement, even though the legislature was permitted to pare back the mandates.  That, Collins argues in the lawsuit, creates an unfunded mandate, which he says is also unconstitutional.

“This isn’t about politics — it’s about fairness,” Ghassali said.  “Our communities lose the ability to plan for their future when they are mandated by Trenton to support the housing needs of other municipalities, often significantly larger in size, on top of our existing obligations.”

The lawsuit was filed against the State, the Affordable Housing Resolution Committee, and Glenn Grant, the acting administrative director of the courts.   Collins says several of the appointments to the resolution panel aren’t eligible under the statute.

According to Ghassali, the municipalities that have already joined the case have agreed to contribute $20,000 each over the next two years.

While more towns might sign on to the lawsuit – in some cases, those that don’t risk a milquetoast position could create a campaign issue – he said there is enough to fund the case for now.

Senate Majority Whip Troy Singleton (D-Delran), the sponsor of the law, said that “affluent, suburban towns opposing affordable housing mandates is nothing new.”

“Same story, different day,” said Singleton, who called playing politics with people’s housing shameful.  “What is incredibly offensive, beyond using taxpayer dollars to fund this politically-driven, superfluous lawsuit, is the attempt to use the legal process to intentionally delay our affordable housing laws – not by weeks or months, but years.”

Adam Gordon, the executive director of the Fair Housing Center, called the lawsuit “a smokescreen” to delay the new law.

“The lawsuit also is a thinly veiled attempt to revisit through the courts arguments that failed in the political process,” Gordon said.

Attorney General Matt Platkin said he was “disappointed that a small group of towns are resisting New Jersey’s important new housing law.”

“We look forward to defending that law in court,” Platkin said.  “We are confident that the courts will see these baseless claims for what they are.”

Borough of Montvale v State of New Jersey - Filed Complaint (1)