the staff of the Ridgewood blog
Montvale NJ, Montvale Mayor Mike Ghassali has brought attention to significant issues uncovered during the borough’s legal challenge against New Jersey’s Fourth Round affordable housing law. This lawsuit, aimed at addressing what Montvale and other municipalities deem an unfair system, reveals systemic problems that could impact towns statewide. Here are ten troubling facts Mayor Ghassali shared about the ongoing litigation.
1. Urban Aid Municipalities Are Exempt from Building New Affordable Housing
Urban aid municipalities such as Hoboken, Jersey City, and Lakewood, which contribute 50% of New Jersey’s population growth, are exempt from new affordable housing obligations. This exemption dates back to outdated policies created 40 years ago when urban growth was significantly lower than suburban growth.
2. Suburbs Must Absorb Urban Population Growth
For every 10 people moving into an urban aid municipality, surrounding suburbs must create affordable housing for four individuals. This obligation adds to the housing demands already created by suburban population growth.
3. Affordable Housing Obligations Decided by “Experts”
Affordable housing obligations are determined by individuals selected by the Administrative Director of the Courts (ADC), a retiring Trenton bureaucrat. These so-called “experts” are appointed without going through the state’s constitutional advice and consent process.
4. Experts Allowed Outside Income and Political Activity
The ADC exempts these experts from adhering to the judicial code of conduct, permitting them to engage in political activities or earn outside income, raising concerns about ethical conflicts.
5. Favoritism Toward Fair Share Housing Center
Towns are required to submit their affordable housing plans to the Fair Share Housing Center (FSHC) before submitting them to the state program. Critics argue this process unfairly favors FSHC and undermines judicial independence.
6. FSHC Benefits Financially from Current Processes
In court filings, FSHC admitted it benefits financially from the current bureaucratic processes, as it reduces their legal costs for challenging municipalities.
7. Municipalities May Be Forced to Compete Over Housing Obligations
Rules allow objections to affordable housing plans to be consolidated, which could result in municipalities being pitted against each other to fulfill housing requirements.
8. Unlawful Compliance Requirements Imposed
The ADC introduced additional compliance mandates not outlined in the law, such as requiring towns to adopt specific fair share ordinances by June 30, 2025.
9. Regulations Issued Without Public Input
The New Jersey Housing and Mortgage Finance Agency (HMFA) issued new regulations without public notice or comment, despite engaging with special interest groups for six months prior to finalizing them.
10. Flawed Process Repeats Every 10 Years
The law mandates a review and renewal of these affordable housing obligations every 10 years, perpetuating the challenges and concerns faced by non-urban municipalities.
Call to Action
Mayor Ghassali urges state officials and residents to reconsider the Fourth Round affordable housing law to prevent the long-term urbanization of suburban communities.
Key Takeaway: New Jersey towns face an urgent affordable housing deadline, but the system’s flaws highlight the need for reform. Without changes, suburban municipalities will continue to bear disproportionate housing burdens.
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NJ stinks! This Mayor is right on!
Unfortunately there is great corruption in the housing.
Many units are illegally owned by non residents and used as rental units , preventing qualified persons from the program. Local politicians and NJ attorney general are so far not interested in regulating this practice.