NJ Supreme Court Makes Way for Affordable Housing Growth

The New Jersey Supreme Court issued a decision on January 18, 2017 that paves the way for a possible surge in new affordable housing projects across the state. The court ruled in favor of holding cities and towns accountable for the 16-year “gap period” (1999-2015) when the Council on Affordable Housing (COAH) was not operating effectively and failing to adopt lawful regulations.

The opinion dictates that municipalities must take this gap period into account when calculating the “present need” that determines their “fair share” of affordable housing obligations. As a result, municipalities will face higher fair share obligations and be forced to rezone additional properties for affordable housing.

According to the Fair Share Housing Center, this victory will address the unmet housing needs of thousands of lower-income and minority families in New Jersey.

This Supreme Court decision will now guide trial courts in the state, most likely beginning with the ongoing Mount Laurel doctrine case in Mercer County.

Read the full Supreme Court opinion or contact a member of our Real Estate Industry Services team for more information on this new development.

Get in touch with Sax by filling out the form below: