FSHC’s Challenges to 68 Municipalities’ Calculations Yield an Additional 5,000 Affordable Homes
Far More Municipalities Participating in Affordable Housing Process Than Any Time in 50-Year History of Mount Laurel Doctrine
Yesterday, New Jersey’s new Affordable Housing Dispute Resolution Program reached its final determination on how many affordable homes each municipality must allow over the next decade.
Under a new, streamlined procedure established by landmark legislation last year, 440 towns adopted resolutions to participate in the state’s “Fourth Round” affordable housing planning process — representing approximately a 25% increase in municipalities participating in the process compared to the Third Round that began in 2015.
Of the 440 towns that have opted to participate in the state’s affordable housing planning process, Fair Share Housing Center’s analysis found that 372 towns’ affordable housing calculations — 85% of the towns participating — were reasonable and decided not to challenge them.
Following mediation hearings between Fair Share Housing Center and the 68 remaining towns, all but seven — Hillsborough, Montvale, North Arlington, Old Bridge, Readington, Toms River, and Warren Township — reached compromises on their numbers of required affordable housing units. The seven cases not resolved by mediation were decided by the state’s new Affordable Housing Dispute Resolution Program.
In total, Fair Share Housing Center’s challenges to 68 towns’ affordable housing calculations led to the recovery of an additional 4,959 affordable homes that would have otherwise been lost.
Under the new affordable housing law, all 440 towns must now adopt Municipal Housing Element and Fair Share Plans by June 30, specifying how they will meet their affordable housing needs.
“We’re thankful that the vast majority of New Jersey’s municipalities are moving forward with creating much-needed affordable housing,” said Adam Gordon, Executive Director at Fair Share Housing Center. “This process validates the intent of New Jersey’s new affordable housing law — making the process more transparent, reducing litigation costs, and ultimately encouraging more municipalities to participate.»
At the start of the Third Round in 2015, it was a very different story — towns claimed that 253 municipalities had zero affordable housing obligations for the next decade, leading to scores of lawsuits. Instead of these disputes getting resolved in a matter of months, as they have this year under NJ’s new law, it took four years for courts to resolve towns’ affordable housing responsibilities.
In New Jersey, the constitutional obligation for each municipality to allow its fair share of affordable homes, known as the Mount Laurel Doctrine, is recalculated every 10 years in cycles known as Rounds. Each municipality’s obligations are calculated by looking at factors in various regions of the state — such as job growth, existing affordability, and the growth of low- and moderate-income households — which determines an individualized requirement for affordable housing.
Ahead of the Fourth Round starting this year, NJ’s new affordable housing law streamlined the affordable housing development process and codified the methodology used to determine each municipality’s obligations over the next decade. The updated framework safeguards towns’ discretion in deciding how they want to fulfill their fair share obligation.
New Jersey’s law gives towns a wide variety of tools to create affordable housing in the way they prefer. Municipalities can choose from a range of options — such as 100% affordable housing, mixed-income housing, supportive housing for seniors or people with disabilities, or repurposing abandoned malls or offices. The recently-enacted law and associated bills give towns additional tools like new bonuses, financing options, and credits to meet their affordable housing responsibilities.
The new law also requires more transparent information to be shared with the public at each stage of the process, from adoption of initial plans to what is built and what trust funds are available to non-profit developers to create and rehabilitate affordable housing.
Municipalities in New Jersey are not required to directly fund affordable housing projects through local taxpayer dollars. Instead, these developments are often supported through a combination of state programs, subsidies, and developer contributions.
Since the inception of the Mount Laurel Doctrine 50 years ago, it has led to the creation of over 75,000 affordable homes — including over 25,000 new affordable homes since 2015 alone — and over 130,000 middle-class homes. Today, more than 400,000 New Jerseyans live in homes created through the Mount Laurel Doctrine.
“New Jersey’s affordable housing law was passed with bipartisan support from a broad coalition of elected officials and community stakeholders across the state,” added Gordon. “When we embrace affordable housing, we are investing in the future of our communities — creating stronger local economies and vibrant neighborhoods, while addressing social and economic problems at their root.”
